BANKING RETURNS.

Lyttelton Times, Volume CXIX, Issue 14736, 15 July 1908, Page 7

BANKING RETURNS.

[Per Press Association.] WELLINGTON, July 14. The banking returns for the quarter ended June 30, in comparison with the figures for the corresponding period of 1907 reveal the extent to wbich the decline in the price of wool and other products has compelled recourse to the banks for the much-needed financial support. The banks consequently are able now to employ the bulk of their surplus funds very profitably in New Zealand, whereas at this time last year, for example, the Bank of New Zealand had to seek an outlet for several millions of its spare, resources in London. For the previous. June quarter the five banks showed an excess of liabilities over assets amounting to £119,241, but in the quarter under review assets over-shadowed liabilities by £4,813,826. This alteration has been chiefly brought about by the increase of advances and discounts amounting in tho twelvo months to £3,390,901. The following table shows the assets and liabilities of the several banks-:

Totals . . 29,413,859 24,600,033 4,813,828 The Bank of New Zealand in. the above list appears to compare unfavourably with the other institutions, but this is more apparent than real. Tho Bank of New Zealand has fully participated in the movement. . Twelve months ago its excess of liabilities over assets was £2,549,570, and by adding tho present excess of _ assets to that amount the actual gain in assets is found to be £2,751,018. The deposits have increased slightly, on the year by £93,636, and on the ' quarter by £168.967, tho latter item, no doubt, being due to the higher rate of interest now offering. The free deposits total £11,532,285, and show a decrease of £681,654 as compared with the corresponding quarter of last year.. The fixed advance deposits for a series of years compares as follows:

1808 . . 11,532,285 9,722,661 The free deposits held by the various banks compare as follows: June, June, DeBanlc. 1907 1903 crease.

Totals . . 12,213,939 11,532,285 651.654 Advances and discounts now' exceed all figures of previous years in that respect. The following table proves this:—

The publio have now borrowed from the banks in these items £156,469 in excess of what they hare lent tho banks in the shape of fixed and free deposits, The respective totals being £21,411,415 advances and discounts, and £21 ; 254,946 deposits, whereas at this period last year the banks were debtors to the publio for £3,822,450, being the excess of deposits over advances and discounts. The note circulation has diminished by £27,713. On the other hand the holdings of coin and bullion are larger to the extent of £161,911. Over a series of yeans these two items compare as follows: Koto Coin and

LiaExcess Bank. Assets. bilities. Assets. , £ £ £ New Zealand' 12,651,641 12,450,493 201,148 Union . . 4,404,171 3,077.543 1,326,623 N.S. Wales 4,379.166 3,402,462 976,704 Australasia . 3,919,792 2,022,709 1.S97.0S3 National . 4,059,080 3,646,821 412.263

Free , Fixed Juno 30 Deposits. Deposits M 1303 . 9,937,545 8,809,064 190-i . 9,681,663. 8,S69,9S4 1905 . 9,469,665 9,423,193 1906 . 10.7S2.703 9,S67,27.1 1907 . 12,123,939 9,629,026

New Zealand £ 5,423,479 £ 5,294,392 129,087 Uni< >a . 1,879,213 1,579.S24 299,389 JN'.S. Wales . 1,614,719 1,546,754 67,965 Ausi ralasia . 1,425,759 1,258,447 167,312 Kati onal . 1,870,769 1,652,865 17,901

une 30. Advances. Discern iris £ 1,844,241 1303 . 11,368,111 1904. . 12,361,851 2,059,145 190,> . 13,21S,030 2,108,841 1906. - 11,108,565 • 2,031,632 1907 . 16,033,352 1,987,1452 1908 . 19.136,575 2,274,840

me 30 Circulation. Bullion. ■£ £ 1903 . . 1,501,247 3,598,245 19M . . 1,519,785 3,S67,826 1905 ' . . 1,521,559 4,000,693 1906 . . 1,615.416 4,660,850 1907 . . 1,694,323 4,755,807 190S . . 1,666,615 4,917,71S