BANK RETURNS

Evening Post, Volume XC, Issue 85, 8 October 1915, Page 4

BANK RETURNS

TRADING IN A WAR YEAR NEARLY SIX MILLIONS EXCESS DEPOSITS The statutory banking returns for the quarter ended 30th September last are interesting in any case, because September is the month in which the New Zealand export year begins. The first shipment of butter, for instance, leaves in September ; cheese follows, and next ] wool and meat in the ordinary course, and so the export year evolves, the slack time coming in about May or June. Not that considerable quantities of cargo are j not offering all the year round, but dairy produce, wool and meat exports in any considerable volume are usually confined : to about eight to nine months of the year. The year closing 30th September, 1915, has been exceptional, because of the war. A year ago it had been proceeding but for barely two months, and the situation could not then be so accurately taken in as it can be to-day ; but it is to be feared that the end of the conflict is as remote to-day as it was a year ago; and, besides the confusion, is being intensified by countries that were then at peace becoming involved. The conflagration has spread, and it is difficult to see how, and to say when, it will be checked or extinguished, and within what limits it wili be confined. The war, too, seriously disturbed the trade and commerce of the world, and especially in regard to shipping. 'These things are reflected in the banking returns, for those who have the time to discern them. The most serious problem that confronted this country was the withdrawal of so much of its insulated tonnage, required for the carriage of perishable produce. This has been made good, however, and in a remarkable way, considering the heavy demands made upon the British mercantile marine for naval and military purposes, and the depredations made by enemy submarines.' New Zealand has been fortunate in not only getting so much cargo away, but in being able to land any at all, considering the former activity of the Germans in the Indian, Pacific, and Atlantic Oceans. However, all sent to the wharves has been taken, except the meat, and there seems to be more than ample space in the ships loading and to load before the new year to take all that will be offering. -^ The chief feature in the bank returns is the excess of .£5,806,023 fixed and free deposits combined over advances and discounts. This shows that while export trade has increased not only in quantity, but also very materially in the values of the produce, the importing trade has shrunk. For this two reasons can be assigned : (1) Difficulty in obtaining goods from the United Kingdom and the Continent — none at all overtly from Germany and Austria; and (2) the natural hesitancy to over-import. The figures, however, are given hereunder, and they should prove profoundly interesting to those who see in them at fairly trustworthy guide to the country's financial and commercial position. Taking deposits first : The Government current account shows a decrease compared with the corresponding quarter of last year, the position being as follow :—: —

Here there is a decrease of £602,664— which in time of war is not hard to understand. The private moneys lodged with the banks, however, funds available for lending to the public, show a record amount in deposits both fixed and free. For the past five years at 30th September the average of these two combined accounts has been £23,500,000. This year they total £29,154,924. The holdings of the six banks are set out as under : — FIXED DEPOSITS.

FREE DEPOSITS..

For the past five years the comparison is as follows: —

Including Government deposits, the banks hold £31,742,297 in deposits. Commercial requirements have not been so extensive as they weTe during the quarter ended 30#h September last year, and the reasons already offered for the limitation of imports are to som« extent confirmed by the tables following, showing the advances and discounts of each bank:—

The table herewith shows the position occupied by advances and discounts for the past five years :—: —

The combined advances and discounts have dropped by £1,113.675, when compared with last year's September figures. Comparing thf» deposit* with advance?, j UicLuding .discounts, it. is seen, tfaat -thej:e i

is a surplus of £5,806,023, or over 5± millions more than this time last year. Excess -of Sept. Deposits. Advances, deposits.

The note circulation is interesting, because of the fact that sovereigns are now rarely seen passing from hand to hand. It is all notes. It is likely to be more note than cheque, some think, in order to escape the extra Id stamp on cheques. The circulation of each bank is as follows : — Note Circulation,

Against the issue of notes the banks have ample holdings of gold in coin and bullion, the aggregate value being £7,002,987, as compared with £5,823,576 at the end of September last year. The great increase in the deposits shows no timidity on the part of the public, notwithstanding the continuance of the war and its effects upon overseas trade. The position of New Zealand is*" explained by the one fact which the returns strikingly emphasise — i.e., that this country has to sell what the Mother Country and the rest of Europe are most anxious td, buy, and for which they are prepared to pay such remunerative prices. The prospect* of the year are highly favourable to producers of all the- staple exports of this country, and the beneficent rain that has recently fallen, particularly in parts of the South Island, later on the East Coast of the North Island, will not only remove much anxiety as to the future that was being felt with respect to both wheat and meat, but materially add to the gross value of the exports of the country for 1915-16. At any rate the returns for the quarter" under review show the country as a whole to be in a position of great financial strength.

iji*t. J.3J.L). Bank. £ New Zealand -... 1,194,258 Union 162,413 New South Wales ... 185,991 Australasia 149,509 National .., „., 304,840 Commercial ... 15,558 £ 1,606,909 246,945 274,949 217,660 445,345 30,998 2,012,569 2,822,801

q'rt'r. £ 1911 ... 23,954,521 1912 ... 23,795.615 1913 ... 23,759,093 1914 ... 25,001,664 1915 ... 29,154,924 £ 21,431,659 22,160,643 22,196,723 24,462,576 23.348,901 £ 2,522,862 1,634,972 1,542,370 539,088 5.806,023

Sept. Advances. . q'rt'r. £ 1911 ... 13,687,242 1912 ... 20,407.573 1913 ... 20,323,372 1914 .. 22,717,577 1915 ... 21,991,220 Discounts. £ 1,744.417 1,753,070 1,873.351 1,744,999 1,357,681 Total. £ 21,431,65! 22,160.6* 22,196,721 24,462,571 23,348,90!

'UIV XO. Bank New Zealand Union New South Wales Australasia National Commercial 1914 £ 912,095 182,704 202,004 188,449 257,406 2,341 1915 £ 743,870 133,364 98,087 159,538 216,264 6,558 1,744,999 1,357,681

Advances. 1914. Bank. £ New Zealand ... 9,232,755 Union .• 4,121,872 New South Wales 3,018,729 Australasia ... 2,965,228 National 3,311,220 Commercial .. 67,764 1915. £ 9,012,221 4,031,905 2,863,640 2,887,987 3,096,161 99,306 22,717,577 21,991,220

xtree Sept. deposits, q'rt'r. £ 1911 . . 13,438,405 1912 ... 13,369,886 1913 ... 13,090,090 1914 ... 14,172,777 1915 ... 17,545,861 Fixed deposits. £ 10,516,116 10,425,729 10,649,003 10,828,887 11,609,063 Totals. £ 23,954,521 23,795,615 23,739,093 25,001,664 29,154,924

J.a±\j, Bank. New Zealand Union New South Wales Australasia National Commercial £ 6,580,379 2,077,043 1,754,813 1,527,677 2,155,589 77,276 £ 8,278,740 2,441,140 2,156,485 1,796,707 2,735,848 136,941 £14,172,777 £17,545,861

-LOA^t. J-VJ.O. Bank. Jew Zealand Jnion lew South Wales mstralasia rational lommercial £ 5,446,504 1,302,518 1,691,886 673,542 1,703,101 11,336 £ 5,866,404 1,440,803 1,794,295 728,638 1,756,514 22,409 £10,828,887 £11,609,063

J.0J.1-. J.OJ.J. tank of N.Z. . . 3,189,976 Inion Bank ... 51 tank of Australasia 10 3,190,037 £ 2,587,207 51 H5 2,587,373