IMPROVED CONDITIONS

Dominion, Volume 16, Issue 175, 12 April 1923, Page 4

IMPROVED CONDITIONS

REVEALED BY BANKING RETURNS COMPLETE RECOVERY A BIG INCREASE IN DEPOSITS OUTLOOK GOOD

The banking returns for the March quarter furnish conclusive and welcome evidence that New Zealand has completely recovered from tho slump of 1920-21. It has taken piracti’caliy two full years to bring about the improvement now recorded.

The salient features of the returns may be summarised as follow: — Government deposits increased ... 83L37J Free deposits increased Fixed deposits increased /W'g Advances decreased, “’ pofs Discounts decreased Circulation decreased Coin and bullion increased ... 151.»< The variations shown above are in comparison with the figures, for the March quarter of last year. There is a substantial gain in deposits, particulaily the free deposits, and the aggregates of each class of deposits compare as under: — Mar.,1922. Mar., 1923. Inc. Deposits. £ £ Government ... 4,506,449 5,193.822 687.373 Free 24,138,736 26,445,502 2,306,756 Fi xc d 161,221,644 17,020,314 (98,670 44,866,839 48,669.638 3.792,799 The gain in the free deposits or current account balances is substantial, and in striking contrast to what we had become accustomed during the, past six of seven quarters The movements in tho free deposits as they affect each bank are as follow:— Mar.,1922. Mar., 1923. Ino. ■Rnnlr £> New Zealand... 11.678,140 12,318,484 640.344 T r nfon 2.922,964 3.128,804 .215.900 N.S Wales 2.375,574 2,379.557 Australasia 1,160.372 1,186,631 26,2591ine. National .. 3,981,975 5,600,389 1,013,414 Commercial ... 615.172 632,798 67,626

24,138,746 26,445,502 2.306,756 Liquidation has been carried out steadily and may now be said to be complete. The growth of the deposits should load to increased enterprise in the development of the resources of the Dominion, for the credit cannot be allowed to remain idle. The movements in the fixed deposits are shown in the table appended: —

16,221,644 17,020,314 798.670 ino. The National Bank and the Continental Bank exhibit shrinkages, but those were more than made up in the gam in the free deposits. The aggregates of the free and fixed deposits for,.the March quarter of each of the past seven years show as under:

The custoniers of the banks are again building up their credits, and they now stand better by over £3,000,000. The advances have decreased by £3,966,826, and the position of e<vch bank is shown in the following table : —

44,752,177 40,785,351 3.966.826 dec. Tho Commercial Bank shows a small increase, but all the other banks show heavy shrinkagesThe discounts show a decrease ot £2918, which is very moderate, and it is obvious that traders and others require about £1,750,000 iirthe March quarter to carry on. The .movements m the discounts are shown below:

Taking the advances and discounts for the March quarter of each of the past seven years show as under:

Tho deposits represent in effect the borrowings of the banks from the public and tho advances and discounts represent the borrowings of the public from the banks, and it is interesting to set the one against the other, and to see how the public stand. Taking the quarterly- figures, tho position is shown in the table appended:—

In 1921 and 1922 the .advances were substantially greater than the dc-‘ posits, while for the first quarter tins year there is an approach to the normal, and the deposits exceed the advances by r over £914,000; that is, the banks are again indebted to the public on balance, as is usually the case in normal times. The circulation stands at £6,632,182, and is less by £878,269 than the amount of the note circulation in the corresponding quarter of last year, while the metal reserve at £7,929,267 is £151,287 more than in March, 1922. The note circulation and the coin and bullion for the March quarter of seven years are as under: — v Coin and

It will bo noted that tho banks hold ample cover for the note circulation. Tho figures, viewed as a whole, are very satisfactory, and there is promise that the coming winter will bo a great deal better as regards trade, industry, and employment than was the case last Near.,

Mar., 1922. Mar., 1923. £ £ N.Z 8,135. M2 8 680.433 545,391 inc. 2.068,051 319.242 inc. N.S. Wales 2.375.574 2,379.567 3,983 inc. Australasia. 1,160,372 1,186.631 26.259 dec. National ... 2,531 872 2,454.216 77,656 dec. Commercial 269.975 251,426 18,549 dec.

March Ftee dep. Fixed dep. quarter. 1917 £ . . 20.970.702 £ 13.385.838 34.356,540 1918 , 21,614,302 13,891.196 35.505,498 1919 24,363,681 14.405.145 38.848.826 1920 34,614,096 15,850,195 50,665,091 1921 30,785.205 16,370,525 47,155.730 192.2 . 24,138.746 16,221,644 40,360,390 1923 26,4-15,502 17,020.314 43,465,816

] Banks. aj.'Z 2 War.. 1922. Mar., 1923. £ ;O,2O1.167 17,634,735 2,566/32 dec. Union 5.82.2,829 5,343,222 479,607 dec; N.S. Wales 4,860,590 4,598.930 261,660 dec Australasia 5.628.186 5,■’79.406 443,780 dee. National .. 7,474,950 7,229,521 245,429 dec. Commercial 764,455 799,537 35,082 inc.

Mar., 1922. Mar., 1923. £ 122,141 inc. 10,506 dec. 48,114 dec. 746dec. 58,660 dec. 7,134 dec. Banks. N.Z Union N.S. Wales ■ Australasia National ... Commercial £ 1,041,695 79,530 182,390 151,203 236,034 48.286 1,163,836 69,024 134,276 150,458 177.474 41,152 1.739,138 1,736,230 2,919 dee.

OV/ • «- *7 March, quarter. 1917 .... Discounts. £ .. X,552,£63 Advances. £ 26,142, COT Totals. 27,694,930 191’8 .. 1,223,465 28.094.431 29,317,896 1919 .. 1,454,612 30,719.032 32,203,644 1920 .. 1,285,188 30,761.354 32,042,042 1921 . 2,950,293 49,495.133 {•2,446,341 1922 .. 1,739,138 44.752.177 46,491,315 1915 .... .. 1,736,222 40,785,351 42,521,573

Eteposita. JAdvances. Excess of Quarter. Dec., 1920 £ 49,456.893 £ 47,118.295 2.3.38.598 D Mar., 1921 47,355,730 52/46,341 5,290,611 A June. 1921 45,511,095 54,385,485 8,874,590 A Sept., 1921 Dec., 1921 43,445,663 48,039,609 4,593,946 A *40,935.621 47,556,726 6.62.3,105 A Mar., 1922 40,360.389 46,491,314 6,130,925 A June, 1922 41,388.886 46,155,934 4,767.043 A 1,032.532 A Sept; 1922 41.961,866 42,994,448 Dec., 1922 41,104,419 43,431,016 2,326.597 A Mar., 1923 43,465,816 42,521,573 944,423 D

March Circulation. bullion. marter. £ £ ’1917 4,637,451 7,863,635 1918 5,915,529 7,934,188 1919 6,512,191 8.075.999 1020 7.765.559 7 807.213 1921 ,. fc 7.830.206 7.662.658 1922 7.5 1 0,451 7.777.980 1923 6,632.182 7,929,267