The Lyttelton Times. FRIDAY, SEPTEMBER 4. 1891.

Lyttelton Times, Volume LXXVI, Issue 9510, 4 September 1891, Page 4

The Lyttelton Times. FRIDAY , SEPTEMBER 4. 1891.

The banking returns of the Australasian Colonies for the second quarter of this year are now before us. They indicate that the trade of the whole group is in a somewhat stagnant condition. The deposits during the year lave increased by only about threequarters of a million, which is considerably under the normal growth during the past twelve years. Since 1879 the deposits have increased by sixty millions, or at the rate of five millions per year. The falling off to less than one million for the year ended June 30 is therefore phenomenal. There are many causes to which this may be attributed. The labour troubles, the Baring disaster, the attitude assumed by the English money market towards Colonial loans, and the collapse of the Victorian boom have all assisted in reducing the volume of deposits, and in weakening credit. Side by side with the shrinkage of deposits there has been during the quarter a decrease in the advances of £684,000. As the three previous years showed a total increase in the advances of twenty-five millions, the decrease for the June quarter was very conspicuous. Comparing the advances with the deposits, we find that during the year ended June 30 there was an excess of increase in advances of one million and a half. The previous year there was an opposite result, namely, an excess of increase in deposits of two and three-quarter millions. Turning to the position of New Zealand, we find that the steady reduction of advances which has been going on for some time still continues. During the quarter tbe advances made by the banks in this Colony were decreased by £482,000, whilst for the year the decrease was £1,106,000. All the other Colonies (except South Australia) increased their advances during the year. If the review is extended for the four years, our position as a Colony is made to appear unique. New Zealand is the only one of the seven Colonies which compose the group that decreased her advances during the four yearsending June 30. Victoria increased her advances by fifteen millions, New South Wales by nearly ten millions, Queensland by five millions, Tasmania by one million, and the other Colonies by smaller amounts, whilst New Zealand was able to pay off £2,118,000 of her advances. But the deposits show an equally satisfactory result. During the quarter the deposits in New Zealand banks increased by £79,000, while the deposits ia Victoria, New South Wales and Queensland were largely reduced. The increase in New Zealand for the year is £400,000, and for the four years £1,855,000. The actual indebtedness of this Colony to the banka has been decreased during the four years by nearly four millions, or at tbe rate, in round terms, of a million a year. During the same period Victoria has increased her indebtedness by nearly ten millions, New South Wales by nearly three and a half millions, and Queensland by over two and a half millions.

Finally, if we examine the account between the banks and the public,. the position will he found equally satisfactory. On June 30 the excess of advances over deposits in this Colony was only £536,000, being a reduction on the year of about one million and a half. The position therefore is that, at the present time, the banks are called on to provide the public of New Zealand with less than half a million of money from other sources than deposits, a sum which appears infinitesimal when compared with the trade of the Colony. Victoria is at the present time using eleven and three-quarter millions of capital in excess of her deposits, and New South Wales and Queensland each seven and a half millions. The Insurance and Banking Eecord, to whose calculations we are indebted for the data given here, says that the reasonable inference from the figures wo have collated is that “affairs in ibis Colony have assumed a healthy, if quiet, aspect.” The compliment is well deserved. During the last few years a strain has been put on the Colony through the calling iri of advances hy the banks, but it is satisfactory to know that the Colony has proved equal to the occasion. It will be well within the memory of our readers that, when wool was down in value and when wheat was at bed-rock price, the banks entered upon a policy of extreme caution. The figures we have quoted show how steadily and persistently that policy has been pursued. -New Zeahind occupies a unique position. During the kst four years she has reduced her advances to the extent of over two millions; but this has not prevented her from increasing her deposits in

r the same time to the amount of ove one million and three-quarters. We have shown the banks that, as a country, we are able, if necessary, to stand alone—that it would be as easy to pay off the <£536,000 owing as it was to pay off three times that sum during the year- Of course the display of this financial soundness will induce the banks to value New Zealand as a field for investment, and in due course the advances will doubtless return to something like a normal condition. Money will he easier, and the monetary institutions will be less exacting in their dealings with the commercial community. There is an unlimited field for investment and enterprise in New Zealand. With wool, grain and live stock at their present values, there is every prospect of the Colony taking a foremost place in the immediate future. We trust, therefore, that the monetary institutions will abandon their recent repressive policy —a somewhat natural one, we admit, considering the ciroumstances of the Colony a few years ago—and afford the same facilities to New Zealand as are freely accorded to less favoured Colonies, like Victoria and New South Wales.

The fact that the next Eire Brigade demonstration will he held in Christchurch lends additional interest to this event of the year. The importance of these demonstrations in creating a spirit of emulation, and in perfecting the different brigades in the performance of their arduow duties, can hardly he over-estimated. We trust the Christchurch people will take the matter up warmly and encourage the movement by the display of a liberal spirit, and by taking that active interest in the preliminaries which is so helpful to those on whom the burden of the work must fall. The last United Fire Brigades’ demonstration held in Christchurch resulted in a profit of <£2l7. With i 3150 of this sum a very fine chemical engine was purchased on exceptionally advantageous terms, and was presented to the city ; whilst the balance was devoted to reopening and fitting up the Lichfield street fire station. This was the satisfactory result of the demonstration held in 1888, which was in every way a pronounced success, and we trust the one now being organised will find the same favour with the public, and prove equally beneficial to the interests of the city.