BANK RETURNS

Dominion, Volume 15, Issue 12, 8 October 1921, Page 9

BANK RETURNS

FIGURES STILL CALL FOR CAUTION DEPOSITS DROPPING CUSTOMERS NOW REPAYING ADVANCES KOTE CIRCULATION DECREASED « 0 Although the comparision of the banking averages tor the September* quarter of this year as compared with tho corresponding quarter of last year show signs of the times, there is a substantial reduction of advances as compared with the previous quarter of the current year. A survey of the banking averages for the September quarter discloses a substantial decrease in dejwsits and a rather pronounced increase in advances as compared with the September quarter of last year. The variations in the leading items in tho banking returns may be summarised as under’*:— £ Government deposits decreased... 3 871,419 Free deposits decreased 9,713,674 Fixed deposits increased 27,6*35 Advances increased .’. 8,670,052 Discounts increased 351,749 Circulation dnereasod jflfc 431.684 Coin decreased 09,799 Those may all be regarded ns adverse movements. Dealing first with the aggregate deposits wo get the following:—

There is a shrinkage of .£13,557,448, which is equal to about -22) per cent., a rather serious contraction. The-Gov-ernment deposits are within small compass, and are the smallest for some 'time. Tho Government deposits in the past seven quarters were’as under: —

The Government has no money to spare for anything but essential expenditure, and this should bo realised by the people. The movements in the free deposits or current account balances as they affect the several banks show as under: —

Tho clients of tho various banks now have <£9.713,67*1 less to their credit than they had a year ago, and that in spite of the fact that tho banks have advanced £8,670,052 moro than in the corresponding quarter of last year. Tho fixed 1 deposits show the trifling gain of .627,645, and the figures for the several banks are shown in the table appended:—

Commercial .. "08,163 254,316 46,183 inc 16,644,693 16,672.338 27,645 Inc Taking the figures for the past seven quarters the free deposits have steadily contracted, while the fixed deposits havo been almost stationary. The appended table shows the positioit:—

The free deposits reached their highest point in tho Juno quarter of last year, while the fixed l deposits attained their highest in the past quarter. Taking the fixed and free deposits for tho Septernber quarter of a serieo of years we obtain tho following:—

Now wo come to the advances, and as already stated these show an expansion of ,£8.670,052, as compared with the September quarter of last year. The figures of t.ht» several banks show as under:—

Although there is this substantial increase as compared with tho corresponding quarter of last year tho figures are not quite so bad as they appear to be. The average advances in the first quarter of tho yeai* were. .1149.496,133, in the Juno quarter they were .£51,449.526, and for the (September quarter .£45,861.993, so that there has really been.a reduction of over .£5.060.000 during the three months just passed. Tho discounts also, though they show an increase, of .£351,749 as compared with the September quarter, 1920, are less than in tho March and June quarters of this year. Thus, as: both the advances and discounts for the / September quarter are smaller than tho figures for tho June quarter, we are justified in assuming that liquidation of (stocks has advanced far enough to enable the borrowers to repay the banks a substantial amount in reduction of overdrafts. Now we come to a. comparison of the , deposits and advances, and taking a series of years wo get the following:—

ft will bo seen from tho above table that for the first time in eight years the advances exceed the deposits, and « by a substantial sum. The banks havo lent to tho public more than tho public have lent to tho banks. We como now to tho note circulation and the reserve of coin and bullion. Under both headings there are shrinkages as compared with a year ago. Tho figures for a series of Real's compare as under: —

is an indication of, contracting business nnd falling prices. Since the December quarter there has boon a very great contraction in the note circulation, as tho following figures show: —

Viewed as a whole the figures indicate that traders and others are making successful efforts to meet their obligations to the banks, and it i.s also obvious that a great deal remains to be done.

Deposits Sep., 1920. Sep., 1921. £ £ £ Government 7.527.386 3,655.967 3,871,419 dec. Dree ■ 36.486.999 26.773.325 9,713.674 doe. Fixed 16,644,693 16,672.338 27,645 inc. 60,659,078 49,101,630 13,557,443 dec.

' £ March, 1920 . 8.7-13.045 .Tune, 1920 .. . 8.379 164 September, 1920 ...... . 7,527.386 December. 1920 . 5.120.001. March, 1921 . 6,299,404 June, 1921 . . 8.189,535 September, 1921 . 3,655,967

Sep., 1920. Sep., 1921 Decrease. Bank. £ £ £ , Kew Zealand .. 17.042 952 12,720.524 4,322.420 .. 4,462,603 3.019,067 1,443.536 NS. Wales ... .. 4.291.221 2.974/31 1,316.590 Australasia . .. 3.981.444 2 668.333 1.313.111 National .. 5,844.939 4,755,934 1,0x89.005 Commercial 863,840 634.836 229,004 36,486,999 26,773,325 9,713,674

\ Bank. Sen., 1920. Sen , 1921. £ £ £ Now Zealand 0,587.5-30 8.102.864 484 666 dec. TTnlon 1.781.056 1.912.996 131 940 inc N.8. Wales ... 2,532.527 2.477.879 54.648 dec. / URtralaaia .. 1.123 696 1.179,910 56.2’4 Inr. National 2,411,721 2,744,343 332.6’2 inc.

Free v deposits. Fixed deposits. Quarter. £ £ March, 1920 ... ... 34.814 896 15.850.195 .lune, 1920 ..... ... 38.354.131 16.243 911 Kent,, 1920 .... ... 36.486.999 16.644.693 J)w.. 1920 ... 32 939.759 16.517.134 March. 1921 ... ... 30.785,205 16.370.525 •Tune. 1921 ... 29.264.633 16.246 462 Sept.. 1931 ... 26.773.325 16.672.333

Free Fixed Total Sept. deposits. deposits. deposits Quarter. £ £ £ 1914 14.172.777 10,823.887 25.001.664 1915 17.545.865 11,609,066 29,154.929 1916 19,670.671 12,978 629 32,599.370 1917 7.1,567.621 14.139.615 35.707 5:6 1918 21.646 245 14.123.961 35.770.206 1919 39,331,317 15.041.568 45.372,885 1920 36.4S5.999 16.644.693 63,151,692 1921 26,773.325 16,672,338 43,445,663

Bank. Sep., 1920. Sep., 1921 Increase. £ £ £ New Zealand ... 16.442 763 4,882 366 4,326'328 20,721,766 5,941.984 5.060.095 4.279.003 1,059.595 733.767 N.S. Wales Australasia ... 4.741.?,19 5 592.2:6 851,067 National 6.185.129 7,828.531 1.€-43,402 Commercial ... 614.116 717,331 103,215 37,191,941 45,861.993 8.670.052

Excess of pppt. Deposits. Advances deposits. qunrter. -P z -’C £ 1014 .... 25.001.664 24.46Z.576 539.0P8 1915 .... 29.1$1.92<» 23.348.9P6 5,866,023 1916 .... 32.599.3CO 24.677,965 7.021.335 17'7 55.71*7 636 28 415,451 7.292.185 1913 35,770,266 31.646,632 4.123,574 1919 45 372.885 30.149.774 15,223.111. 1920 .... 53.131.692 39,017,803 14.113.784 1921 ... 43.445 663 48.039.6C 9 14,593,946 tExcesa of advances

Sept. Circulation Coin. quarter. £ <914 .. 2.012,569 5,825.575 1915 .. 2,822.809 7.002.989 1916 .. 4.329.953 7.493.250 1917 .. 6.650,881 9,847,060 1918 .. 6.235,314 8,146,798 1919 .. 7,357,043 8.046,071 1920 .. 7.617,298 7.710.617 1921 .. 7,135,614 7,640,818 T&n nh.rinkago in the note circulation

Circulation. Coin. Quarter. £ March. 1920 ... 7,765,559 7.807,213 June, 1920 7.7‘1O.W8 Sept., 1920 7,617.299 7,710.617 Dec . 1930 8,252.330 7.657.693 March, 1921 ... 7.830,206 7.662.558 June, 1921 7.853.2C6 7,678.578 Sept.. 1921 7,135,614 7.640.813