THE BANK RETURNS

Hawera & Normanby Star, Volume LXXII, Issue LXXII, 9 July 1917, Page 4

THE BANK RETURNS

The returns for the past quarter show that there is plenty of money—at any rate in the banks, in respect of all classes of deposits there is a considerable increase as compared with the position at this time last year, an increase of over six million pounds. The Government deposits have increased by £2,134,000 (standing now at £5,361,----560), free deposits by the general public by £2,838,248 (£20,542,748), and fixed deposits by £1,200,000 (£12,----619,141). The amount advanced to the public by the banks has also increased, referable, it is understood, to advances against produce in store awaiting shipment. The following table shows the figures for the June quarter of the past five years, and it will be seen at a glance what the movements have been: Excess of Deposits. Advances, deposits. June £ £ £ 1913 24,557,491 22,578,680 1,978,814 1914 25,505,744 23,938,855 1,566,889 1915 28,645.156 23,423,577 5,22L579 1916 33,161,889 24,268,340 8,893,549 1917 ... 37,200,180 .28,280,303 8,919,877 The figures indicate a very remarkable concentration -of money or credit in the banks. It is aue mainly to the large returns from our produce, but in some part to people with capital holding off from investment, and also in some part to the impossibility of renewing stocks.- It is common knowledge that in respect of some classes of goods, perhaps most classes, stocks are becoming very short owing to shipping troubles, and no doubt a substantial amount of cash or credit is held by traders which they would prefer to have in active use in their business instead of it lying idle. However, when all qualifications are made, the financial position is clearly very strong. I