THE BANK RETURNS
The statutory returns for the quarter i ended 30th September, 1920, of the six banks trading in the Dominion are now to hand. The aggregates compared with the corresponding quarter of 1919 are as follow j—
The total of free deposits show this year an increase over the September quarter of 1919 of £6,355,682, and of fixed deposits '£1,603,125. The free deposits, representing current accounts, are naturally greater this 1920 September quarter than the fixed deposits by reason of the Government demand made in the latter for subscriptions to leans, and the accretions made .to the former by sales of produce and receipts from trading. The advances, however, show r. substantial rise for the quarter just closed compared with that of 1919. The advances and discounts combined are greater this quarter by £8.868,054. The explanation for this is to be seen in the great increases in importatioES, not only in bulk but in market value; and added to this factor there is the demand .for accommodation usual at this i;ime of year when but little is coming in to farmers by way of realisations in the primary product*. The butter and cheese export season is but beginning; 'the wool Rales begin ne:rt month, and the meat ia to follow. With meat go the important side lines of hides, skins, and tallow.
The relation of deposits to advances, -i.e., the money which is lent to the banks and the money they lend to customers, affords the following comparisons:—; Sept.. 1919. Sept.. 1920. Fixed and free deposits 45,372,885 53,131,692 Advances and discounts 30,149,774 39.017,808 The excess of deposits over advances in 1919 was £15,2-23,7.11; in 1920, £14.----113,784, or £1,109,327 lees this quarter. Looking backward to the war years the excess of deposits over advances was £-5,806,000 in 1915, £7,921,000 in 1916, £7,292,000 in 1917, and £4,123,574 in 1918.
There is still a considerable expansion, compared with the early years of the war, in the note issue, and a slight reduction in the holding o£ meta'.lio this quarter :is compared ,with September, 1919. The banks, however, hold £830,600 in legal tender notes. The demands of the- farming and mercantile interest are expected to grow rather than diminish, especially now as meat, wool, and cheese are "free" of Government control. The last-named has been sold to a. ]axge extent, and what is consigned is expected to realise higher than Imperial Government priced any way. They were l'Ofd f.o.b. Sales have been effected at from Is 2d to Is 2§d per pound. Wool prospects are not bright, but there is now rather less anxiety as to meat.
Sept., 1920. Sept., 1919 £ £ Govt. deposits ... 7,527,386 5,99"5,30( Free deposits ... 36,486,999 30,331,31' Fixed deposits ... 16,644,693 15.041,56! Advances 37,191,941 28,785,871 Discounts 1,825,867 1,363,9* Note circulation 7,617,298 7,307,04! Coin and bullion 7,710,617 8.046,07!
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Bibliographic details
Evening Post, Volume C, Issue 88, 11 October 1920, Page 7
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466THE BANK RETURNS Evening Post, Volume C, Issue 88, 11 October 1920, Page 7
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