BANKING FIGURES

Dominion, Volume 19, Issue 91, 12 January 1926, Page 5

BANKING FIGURES

THE QUARTERLY RETURNS

BIG INCREASES IN ADVANCES

In the December quarter of 1924 the banking returns were V' ry satisfactory, but then all our primary products were selling at extreme rates. During the past quarter the conditions were different and the banking figures show that producers and others have had to lean more heavily on the banks.

The banking returns for the closing quarter of last year are not. as satisfaetorv as in the corresponding quarter of 1924. and the effect of tho drop in the values of produce is clearly indicated. The free deposits or current account balances show an increase or .£'412.665. and tho fixed deposits a. gam of ,£944.919, as compared with twelve mouths ago. but Government deposits are substantially greater, as will b- seen from the (able appended:— Dec., 1924. Dee., 1925. Increase

46,856.015 49,726.836 2.871.603 In the December quarter of 1924 the free deposits exhibited an increase ot U 515.546, but for the quarter just, closed the increase is only .£'412,665, or over .1'106.090 less. All the banks,, except the Union Bank, shared in this increase, as will be seen in the table following:

24,776,883 25,189,553 412,665 inc. The greatest gain is shown by the National Bank, which appears to have secured about nine-tenths of the increase. The fixed deposits also exhibited a smaller increase than was tho case twelve months ago, when the expansion was .£1,330.576, as compared with ■£91,1.198 now. Tn this latter increase all th.- banks shared as shown below: Dee.. 19’4. Dec., 1923. Inc.

19.899.611 21,840,809 941,198 Taking the aggregate of the free and fixed deposits for the December quarter of tho past seven years the movements are disclosed i.i the table appended : — Free dep. Fixed dep. Total dep.

The free deposits have expanded steadily since 1922, but they are several millions below the record of 1920. The fixed deposits on the other hand have increased each year during the past seven years. 'The next important item in tho returns is the volume of the advance, and here the aggregates show the substantial increase of .£2,399.513, the figures of the several institutions being as under-.—

44,227,557 46,627,070 2.399,513 ii)c. In the December quarter of 1921 tho advances exhibited a small decrease, as compared with 1923, which makes the enormous increase in 1925 all tho more striking. No doubt the strike of seamen in August and September caused a disturbance, and advances that should have been made in the September quarter were carried forward into the December quarter, but allowing for this the demands on the banks have been exceptionally heavy. Tho aggregate of tho discounts also shows a substantial increase, and tho figures compare as under:—

1,708,097 1,927,357 218,469 ffic. A year ago there was a contraction in the discounts, and here again there is evidence of pressure for funds. Taking the advances and discounts for the December quarter of a series of years the movements are disclosed in the table appended:— Advances. Discounts. Totals.

The lota] for the Inst quarter is larger thaii in any quarter iu the fable above, including even the slump years, of 1920 and 1921. An interesting table is to bo obtained by comparing the aggregates of tho free and fixed deposits combined, with the advances and discounts as shown below:—

Excess of Deposits. Advances advances.

In 1920 the deposits exceeded the advances by .£2.338,598, which shows the change that has occurred in recent years. Tho public leaned very heavily on the banks during the past quarter. The circulation shows a. gain of X 198.082, and there was an increase of 4117.749 in 'he amount of tho coin and bullion, the aggregates under these heads for the December quarter of the past five years aro as follow: —

The banking position is not as good as it was a year ago when wool, meat, and butter were making very good prices. It is probable with the fall in values there will be a big demand on the banks, and fortunately the banks are in a position to meet nil reasonable demands.

Deposits. £ £ £, Government .. .. 2,179.514 3.696,534 1.517,120 Free .. 24.776,898 25,189,553 412,055 Fixed .. 19.899.611 20,840,809 941.913

Dec., 1924. Dec.. 1925. Bank £ £ £ Now Zealand 11,643.346 11.69.’,,254 48,9(8 inc. Union . 2,002,791 2 86=,<93 KG,990 dec. N.S. Wales ... . 2,675.8.6 2,693.823 10.617 inc. Australasia 2,447,329 2,466.310 18.981 inc. National .. 4,142,991 4,527.9.3 377.912 inc. Commercial . 864,625 953,470 85.845 inc*

Bank. £ £ £ New Zealand . .. 10,349.922 10.467,817 117,395 Union ... 2,155,738 2,597,231 241,493 N.8. Wale:; ... 2,771,757 2.7<9.8>6 8,139 Australasia .... ... 1,566.741 1,833,701 266,960 National ... 2,614,045 3,073,689 259,644 Commercial .... 241,408 288.475 47,067

Dee. er. £ £ £ 1919 .. 30,136,062 15,433,913 45,569.975 1930 ... 32,939,759 16,517,134 49,456,893 1921 .. 24.SCO,432 16,555.187 4j ,935,619 19:2 .. 23,542,867 17,561,552 41,104,419 1923 ... 24,261,042 18,569,165 42,830,177 1924 24.776,888 19,899,611 44*676,499 1925 .. 25,189,553 20.845,809 46,030,362

Dee., 1924. Dec., 1925. Bank. £ £ £ New Zealand 19,345,955 20,306,018 969,065 inc. Union 5,534,058 5,318,951 284,693 inc. N.S. Wales.,.. 5,199,313 5,746.332 547jjl9 Inc Australasia 5.149,025 5,107,659 41 1 366 dec. National 7,915,799 8.442,402 526,603 inc. Commercial 1,083,407 1,205.708 122.301 inc.

Bank. Dec, 1924. Dec., 1925. £ £ £ New Zealand . Union 1,063,794 56,629 172,390 156,368 221,630 38.035 1,268,871 47,710 161,311 151.775 249.080 48,610 205,077 inc 8,910 dec 11,079 dec 4,593 dec 27.390 inc. 10,575 ino. N.S. Wales .... Australasia .... National Commercial ....

Dec. ar. £ £ £ 1919 .... ... 30 693,051 1,413,705 32,106,756 1929 .... 44,544,458 2.573,837 47,118,295 1921 ... 45,762,927 1,789,799 47,558.726 1922 ... 41.77fi.678 1,660,358 43,431,016 1923 ... 44.427.858 1.801,536 46,229,394 1924 .. 44.227.557 1.7(3,897 45,936,454 1925 46,627.070 1,927,357 48,554,427

Dre. ar. £ £ £ 1921 ... 40.935,619 47.658,726 6,623,107 1922 .. 41,104,419 43,431,016 2,326,597 1923 ... 42.830.177 46.229,394 3.399.217 1924 ... 44,676.499 45,936.454 1,259,955 1925 ... 46,030,362 48,554,427 2,524,066

Circulation. Coin and bullion. Dee. qr. £ £ 19'11 7,458,385 7 683.94? 1922 6.763.998 7.884.110 1923 6.643.900 7.867.841 1924 6,749,595 7,722 470 1925 6.947,677 7,740.219