Hawke's Bay Herald. THURSDAY, MARCH 25, 1880. BANKING RETURNS.

Hawke's Bay Herald, Volume XXI, Issue 5646, 25 March 1880, Page 2

Hawke's Bay Herald. THURSDAY, MARCH 25, 1880. BANKING RETURNS.

Despite the monetary pressure which, has been experienced during the last fifteen months the position of the banks did not until very recently show any marked sign of improvement. This was doubtless due to the many long-dated bills which had been given for land, &c., which fell •in after the pressure was first exjjerienced. Had things gone on as before, the advances would inevitably have shown a great increase, and the fact that there was a decrease, though slight, proves that the restriction of the outflow of money had a very marked effect. According to the official returns the gross advances of the banks in December, 1878, amounted to £14,139,988, the deposits and note circulation being £10,384,815. By the following September the advances had fallen to £13,290,871, but the deposits and circulation had fallen to £8,302,581, ■ there being an excess of advances amounting to £4,988,290, as .against £4,139,988 in the previous December. The decrease in the deposits , was doubtless due to the fact that money was withdrawn for trade purposes, so . that the actual money' invested in trade was probably not much less, the apparent scarcity being due to the stoppage of the great expansion in floating capital which had been experienced during the live years preceding. Last December, however, the returns showed very material improvement. The advances had further decreased to £12,872,980, but the deposits and circulation had increased to £8,493,840, giving a net improvement of about £600,000. The reserve of coin also increased in the quarter to ii 1,9 31,880, as against £1,7^5,491 at the end of September. Taken on the whole the end of 1 879 saw trade in a much sounder position than the beginning of the year, though the money market showed slight abatement in stringency, The improvement was nearly all effected in the last quarter, and there is reason to believe that the current quarter will show a still better state of things. That the banks do

not find the calls on their resources so heavy is evidenced by the recent reductions in the rates of. interest offered for ■ deposits, and \kd Wellington Prices \ Current, in referring to, the subject, says ; "We. accept this, step? as an indication that thfe keen competition for deposits to wliicli wp had first occasion to allude in October, 1878, is now lound by the banks to bo no longer necessary or desirable, and, taken in combination with other facts, wo welcome it as the commencement of ■ an improvement which, though slow, and gradual, will, we hope, be progressive and. ; permanent." , ;