The Hastings Standard Published Daily. WEDNESDAY, AUGUST 5, 1896. THE BANKING RETURNS.

Hastings Standard, Issue 86, 5 August 1896, Page 2

The Hastings Standard Published Daily.

WEDNESDAY, AUGUST 5, 1896. THE BANKING RETURNS.

For the cause that lacks assistance, For the wrongs that need resistance, For the future in the distance. And the good that we can do.

The bank returns published in the last Gazette show that the financial institutions of the colony have not relaxed that over caution which has been the dominant feature of banking for many months past. The banks, individually and collectively, are strong, too strong for us to expect any immediate revival of trade and enterprise. During the quarter the banks have added to their stores of gold and silver to the extent of ±'36,610, the totals being £3,285,372 on March 31st last, as against £3,321,988 at the close of the second quarter of the year. In addition to this the Bank of New Zealand held liquid securities to the extent of £363,418 18s sd. Turning to the advances on overdrafts we find that during the quarter the public has been accommodated with £88,092 more than in the March quarter, but as compared with previous years there is a tremendous falling off as the following figures will show : June 30, 1893 £10,458,092 June 30, 1894 9,815,123 June 30. 1895 9,881,962 June 30, 1896 9,153,630 While there has been an increase in the overdraft accounts, there has been a proportionately greater decrease in the discount business. As compared with the March quarter there has been a decline of £20,739, and a glance at the following figures will show how steadily the* shrinkage goes on. The notes and bills discounted at the various quarterly periods is as under: — June 30, 1895 £1,776,404 September 30, 1895... ... 1,761.026 December 31, 1895 1,758,498 March 31, 1896 1,738,258 June 30, 1896 1,717,519 If we turn to the figures representing the moneys lent to the banks by the public we find that there has been a substantial increase. The deposits not bearing interest have been augmented during the quarter to the extent of £261,652, while the interestbearing deposits have also increased by £57,966. The figures for each bank are shown in the following table :

Increases of £16,021, £15,719, and £69,922 are shown in the Bank of New Zealand, Bank of New South Wales, and National Bank respectively, and decreases are shown of £33,863 in the Union Bank and £9,833 in the Bank of Australasia. Taken altogether the increase is £57,966. During the quarter the public have supplied the banks with £319,618 more than they held in March, and of this sum only £67 ; 353 has been re-lent to the public. The bulk of the money furnished the banks by the public carries no interest, and it would appear that the banks cannot or will not find suitable investment for the money. We believe the trouble lies in the fact that the banks, being bound to a policy of caution, are unable to make advances to any extent. It is quite evident that the bank rates for deposits, discounts, and overdrafts must recede further. The note circulation was added to during the quarter to the amount of £39,603. The following table discloses the position of the note circulation at corresponding periods for a series of years : .Tune 30, 1893 £1,018,545 June 30, 1894 959,4:21 June 30, 1895 ... ... ... 934,280 June 30, 1896 965,344

June SO, March 31, 1896. 1896. M £ Bank of N.Z. 3,864,485 3,348,464 Union Bank 1,643,126 1,676,989 Bank of X.S.W.... 1,472,558 1,456,839 Bank of Alistraltisia 646,131 655,964 National Bank ... 1,022,181 952,259 £8,148,461 £8,090,515