BANKING RETURNS.

Manawatu Standard, Volume XLIV, Issue 681, 14 April 1923, Page 3

BANKING RETURNS.

IMPROVEMENT IN POSITION

RECOVERY FROM THE SLUMP

The banking returns for (he March quarter furnish conclusive and welcome evidence that New Zealand has completely recovered from (he slump of 1920-21. ft has taken practically two full years to bring about the improvement now recorded.

The salient features of the returns may be summarised its follow;

Government deposits increased ... 637,373 Free deposits increased 2,306.756 Fixed deposits increased 793,670 Advances decreased 3,966,826 Discounts decreased 2.918 Circulation decreased 878,269 Coin and bullion increased 151,287 The variations shown above are in comparison with the figures for (be .March quarter of last year. There is a substantia! gain in deposits, particularly the free deposits, and the aggregate of each class of deposits compare as under:

Mar., 1922. Mar., 1923. Inc. Deposits. £ £ £ G’nment ... 4,505,F1D 5.193,822 687,373 Free ... 24,138,756 26,445,502 2,306,756 Fixed ~, 16,221,644 17,020,314 798,670

44,866,839 48,669,638 3,792,799 The gain in (he free deposits or current account balances is substantial, and in striking contrast to what we had become accustomed during the past six or seven quarters. The movement in the tree deposits as they affect each bank are. as follow ;

Mar., 1922. March, 1923. Inc, Bank. £ £ £

N.Z 11,678.140 12,318,484 640,344 Union ... 2,922,964 3,128,864 205,900 N.S.W. ... 2,375,574 2,579,557 3.933* A’aia ... 1,160.372 1,186,631 26,259* National ... 3,981,975 5,000.389 1,018,414 Om’cial ... 615,172 682,798 67,262

24,138,746 26.445,502 2,306,756 * I ncrease

Liquidation has been carried oni steadily, and may now be said to be complete. The growth of the deposits should lead to increased enterprise in the development of the resources of the Dominion, for ( the credit cannot be allowed to remain idle. The movements in the fixed deposits are shown in the table appended: Mar., 1922. March, 1923. Bank. £ £ £

N.Z 3.135.042 8.680.433 545,391* Union ... 1,748.809 2,068,051 319,242* N.S.W. ... 2,375.574 2,379,567 , 3.983* A’sia ... 1,160.372 1.186.631 25,2591 National ... 2.531.872 2.454,215 77,656+ Cm’cial ... 269.975 251,425 18.549+

16,221,644 17,020,314 793,670* •[•Decrease.

The National Dank and the Continental Bank exhibit shrinkages, but ihesc were more than made up in the gam in the free deposits.

The aggregates of the free and fixed deposits for the March quarter of each of the [last seven years show as under: March Free. clop. Fixed dop. Totals, quarter. £ £ £

1917 ... 20,970.702 13,385.833 34,350',540 1918 ... 21,614,302 13,891,196 36,505.493 1919 ... 24,363,681 14,485.145 38,848,825 1920 ... 34,814,896 15.850,195 50,665.091 1921 ... 30,785,205 15,370,525 47,155,730 1922 ... 24.158.746 16,221,644 40,360.590

1923 ... 26,445,502 17,020,314 43,465,816 The customers of (lie banks are again building up their credits, and they now stand bettor by over £3,000,000. The advances have decreased by £3,966,326, and the position of each bank is shown in the following table:

Mar., 1522. Mar., 1923. Bank. £ £

X.Z 20,201.167 17,634,735 2.566,452+ Union ... 5,822,629 5.343,222 479,607+ N.S.W. ... 4.860,590 4,693.930 261,060+ A’sia ... 5,623.186 5,179,406 448,780+ National ... 7,474,950 7,229,521 245,4291 Cm’cial ... 764,455 799,537 35,082"'

44,752,177 40,785,351 3,966,826+ Mncroaeo. fDcerease. Tlie Commercial Bank shows a small increase, but all tho other banks show heavy shrinkages. The discounts show a decrease of £2918, which is very moderate, and it is obvious that traders and others require about £1,760,000 in the .March quarter to carry on. The movements in the discounts are shown below: Mar., 1022. .Mar,, 1925. Bank. £ £ £ X.Z 1,041,695 1,163,836 122.141* Cnion ... ' 79,530 69.024 10.506+ X.S.W. ... 182,300 134,276 48.114+ A’sia. ... 151,203 150,453 745+ National ... 236,034 177,474 58.560+ Cm’cial ... 48,236 41.152 7.134+ 1,739,138 1.756,220 2,918+ "Increase. + Decrease. Taking the advances and discounts for tho March quarter of each of the past seven years show as under: March Discounts. Advances. Totals, quarter. £ £ £ 1917 ... 1,552,863 26,142,067 27,694,930 1918 ... 1,223.465 28,094,431 29,317.896 1919 ... 1.484,612 30,719.032 32,203,644 1920 ... 1.280,188 30,701,854 32,042,042 1921 ... 2,950,203 49,496,133 52,446,341 1922 ... 1.739,138 44,752,177 46,491.515 1923 ... 1,736.222 40,785,351 42.521,575 The deposits represent in effect the borrowings of the hanks from tho public and the advances and discounts represent the borrowings of the public from the hanks, and it is interesting to sot one against the other, and to see how the public stand. Taking the quarterly figures, the position is shown in the table appended: Deposits. Advances. Excess of Quarter. £ £ £

Dec,, 1920 49,456,893 47,118,295 2.538,5981) Mar., 3921 47,155.730 52,446,341 5,290,611 A June, 1921 45,511,095 54,335,485 8,874.390 a Sep., 1921 43,445,663 48,039,609 4,593,946 A Dec., 1921 40,935,621 47,558,726 6,623,105 A Mar., 1922 40,360,389 46,491,314 6,130,925 A June, 1922 41.388,886 46,155,954 4,767,048 A Sep., 1922 41,961,866 42,994,448 1.032,582 A Dec., 1922 41,104.419 43.431.916 2.326.597 A Mar., 1923 43,455,816 42,521,573 944.423 U

Ju 1921 and 1922 the advances were substantially greater than the deposits, while for the first quarter this year there is an approach to the normal, and the deposits exceed the advances by over £944,000; that is, the banks are again indebted to the public on balance, as is usually the ease in normal times. The circulation stands at £6,632,182, and is less by £878,269 than the amount of the note circulation in the corresponding quarter of last year, while the metal reserve at £7.929.267 is £151.237 more than in March, 1922. Tin* note circulation and the coin and bullion for the March quarter of,seven years are as under: Coin and March C’latiori. bullion. quarter. £ £ 1917 4,637.451 7,863,635 1918 5,915,529 7,984,188 1919 6,512,191 8.075,999 1920 7,765,559 7,807,213 1921 7.850.206 7,662,558 1922 7,510,451 7,777.980 1923 6,632,182 7,929,267 It will be noted that the banks hold ample cover for the note circulation. The figures, viewed as a whole, are very satisfactory, and there is promise that the coming winter will be :t groat deal belter as regards trade, industry and employment than was the case bust year.