NEW ZEALAND BANKS.

Lyttelton Times, Volume CXVIII, Issue 18534, 9 October 1920, Page 10

NEW ZEALAND BANKS.

THE QUARTER’S ’ RETURNS. Three months ago, in .reviewing these figures, attention was drawn to tho fact that ■the supply, of funds held by the banks had attained a higher level than ever before. Tho excess of deposits over advances was then £19,608,612.' The opinion was expressed that a reduction in this surplus) was coming before long, and the latest figures show this

reduction to have rtar’od already. The surplus is now £l-1,113,888* which is a, fairly heavy one, and just n million less than a car ago. Tha principal items of interest iit Iho latest, returns compare as follows . with the figures ol three months ago : ,

Free deposits liavo decreased by £1,867,182, and advances und discounts together have increased by £4,228,227. These move manta are probably duo mainly to the heavy importation of tha last few months. With a scarcity o£ goods and fear of importing too hoavilv on high prices, stocks hiul got down to ft low level. However, for the first eight months of this yoar imports amounted to £35 510,318, or fivo millions rnoro than for the’fnli year 1919. and about double the pjovrar standard. The note circulation has declined, hut this is mostly in fho amount held amongst, the hanks themselves. Iho actual circulation with the public is only *77 700 Icsr than in tho previous nuarler. ~ Comparing the latest figures with the corresponding periods of previous veara, deposits show tho following movements in recent years:

Tlie total of deposits lias increased by £7 758 308 in the last year, and is over double the pro-war total. Tho major part of the growth in in the free class, which suggests funds lying idle 'awaiting investment or to pay for goods coming forward in time. Of course, the increase mainly arises from tho high prices realised for our produce, coupled with restricted importation. Importation is now increasing rapidlv. and if prices for our ]uofaco recede v.'o shall undoubtedly see a shrinkage in the total deposits. Already advances are affected by tho increased importation. as will bo seen by the following comnnriflon : September Quarter. Advances. Discounts Total. jj & £

Tho increaso in tho last, year in particularly heavy, and the increase in discounts is a* noticeable foaturo. Of oourse, judged puroly by tho money standard, nil trade has increased considerably, nnd consequently requires moro capital, nnd this is a very large factor in causing tho above growth. Denosits and advances compare ns follows for tho noriods under review : September Excess, of Quarter. Deposits. Advances. Deposits. £ £ £

Tho surplus, though still a very large ono. shows ft reduction of £1,109,227 in the year. Following aro the shares of the different banks in these deposits and advances: Deposits. Advances.

Each bank shares in the growth in both deposits and | advances. Government deposits amount to £7,607.835. ns compared with £5,935.305 last, and the hanks hold £6,208,623 of Government securities, ns against £3.253.334 a year ago. Meial holding and note circulation,. tho only other items of interest, compare a-s follows: September Hoto Circu- Coin and Quarter. lation. bullion. £ £

Metal holdings have dropped hack £335,455 in the year, but circulation has increased by £260,251. However, tho circulation, apart from what is held amongst the banks, has an increase of £673,002. Increased wages nnd the higher cost oi goods are probably the chief tactora in this. The situation appears sound and satisfactory at present from these figures. However, they give a clear indication thßt a movement in the direction of a reduction in the available supply of money has started, and this movement may he expected to continuo in the now current quarter in n much greater decree Importation is growing, and tho coming season's exports must be financed in this country. These two factors oro going to cause s decided drain on tho supply of funds.

.Sep lumber, Juno, 1320. 1920, JO a Deposits, free 36,437,000 38,351,182 Deposits, fixed 10,014,694 10,213,011 Deposits, Government . 7,527,835 8,379,104 .\ot-o circulation 7,617238 7,920,471 Discounts 1,825.067 1,332,833 Advances 37,191,911 83,-157,183 Coin e,nd bullion . 7,710,016 7,710,848 Government securities 6,202,023 0,358,007

September Quarter Free. £ Fixed. C Total. £ mon 90,487.000 16.644,694 53,131.094 191!) 90.301,018 15.041,568 45 572,886 1918 21.646.245 14 120.961 35,770.966 1917 21 567.821 14,139 816 85.707 037 1914 14,172.777 10,828.866 25.001,663

3920 . 57.191.941 1,825,567 09,037,808 1939 . 25,785,870 1,863 903 50,3-19.779 1938 90 309 P06 1.002 999 91 0(9(594 1807 27,117992 1,297.460 28,415,452 3914 . 22.717,577 1,741.999 24,462.576

1920 . 93,101,634 89 017,809 14.113,888 1919 . 45,372,880 30.149 773 15,223,113 1918 . 26,770.205 31 646,634 4 1 23,572 1917 . 35,707 637 28,415.452 7.292.1R5 1914 . 257001,668 24 402,576 G39.087

& £ Bank of Neve Zealand v : 25.&90.4B2 17,531.68!) Union Bank . . . P "43,659 4,943,062 Bank of N.S.TV. . 6*823.74!) 4.448,402 Bank of Australasia , 5,105.140 .1,966 894 National Bank . < fi.25G.r60 6,440,258 680,423 Commercial Bank . 1,072,004

1020 . . 7,617.293 7,720,610 1919 . 7,357,0-17 8,016.071 19 IS . 6.215 344 8,116,798 1917 . 5,610,860 8.318 501 1914 . 2.012,570 6,823,576