BANKING RETURNS

Manawatu Standard, Volume L, Issue 117, 14 April 1930, Page 2

BANKING RETURNS

CREDIT SOUND. TIME DEPOSITsIjTILL GROWING. Per Press Association. WELLINGTON, April 13. The banking returns for the past quarter, critically analysed and compared with 1929, are not so unsatisfactory as was expected. On the contrary, in some respects they are really satisfactory, and were it not for the inevitable pressure from Australia, the position to-day would cause no concern. Nor is there in reality any reason for anxiety, for the 'banks have taken timely steps to keep . the country’s credit sound. The salient features of the returns, as compared with the March figures of last year, are: — £ Government deposits increased by 601,647 Free deposits decreased by 1,830,921 Fixed deposits increased by 488,f>67 Advances increased by 7,271,832 Discounts increased by 45,202 Circulation increased by 46.144 Coin arid bullion decreased by ... 614,523 The Government deposits totalled £3 466.086, against £2,864,439, showing a small gain. The shrinkage in the call. deposits or current account balances at £1,830,921 is rather large, and in this decrease all the banks shared except the Commercial Bank of Australia, which shows the small increase of £69,168. The figures are as under: Mar., 1929. Mar. 1930. Dec. Bands. £ £ £

This decrease, taken in conjunction with the substantial increase in advances, indicates that there has been some pressure of overseas obligations. The time or fixed deposits increased by £488,667, but the Union Bank and the Commercial Bank show decreases. The figures of* the several banks compare as under: — Mar., 1929. Mar.,1930. Inc. Banks. £ £ £

The fixed deposits have shown a tendency to expand in the last few years, and compared with 1926 the increase ie nearly £10,000,000; the free deposits have fluctuated considerably. The movements in these’two classes of deposits over tlie past five years are described in the title appended: March Free dep. Fixed dep. Total dep.

The advances have increased from £45,175,304 to £52,447,316, an increase of £7,271,832, and every bank has advanced liberally. The figures of the several banks are as follow: Mar., 1929. Mar.,1950. Inc. Banks. £ £

The discounts for the quarter at £1,229,642 show an increase of £45,202 over the corresponding quarter of last year. The totals of tho advances and discounts for each of five years compare as under:

Comparing the advances with the deposits the following table is obtained :

Although the advances increased heavily they were still less than the deposits and the position of the Dominion would have been regarded as healthy but for the abnormal economic conditions of Australia and the financial stringency over there which are exercising an adverse influence on the Dominion. The note circulation at the close of the last quarter at 6,417,038 was £46,144 higher than in the corresponding quarter of last year, showing that the people have held more pocket money than a year ago.

N. Zealand 12.272.662 Uriion 2,919,214 N.S. Wales . 2,766,998 Australasia . 2,547,417 National ... 4,271,455 Commercial 958,997 11,164,335 1,103,327 2,893,700 25,514 2,551,419 215,579 2.335,733 211,684 3,932,470 338,985 1,628,165 *69,168 25,736,743 23,905,822 1,830,921 •Increase.

N. Zealand 14,622,324 14,863.274 240.950 Union . 3,450,484 3,209,883 *240,601 N.S. Wales . 3.922.462 . 4,109,384 185,922 Australasia , 2.610,863 2,710,336 99,473 National . 4,345,035 4,585,234 240,199 Commercial 657,584 619,308 *38,276 29,603,752 30,097,419 488,667 ‘Decrease.

quarter. 1926 ... £ 26,865,851 £ 20,436,629 £ 47,302,480 1927 ... 24,440,778 21,088.034 45.528,812 1928 ... 24,482,151 25,476,144 49.958,295 1929 ... 25,736.743 29.608,752 55.345,495 1930 ... 23,905,822 30,097,419 54.032,241

N. Zealand 19,240,355 Union 5,376,078 N.S. Wales . 5,788,360 Australasia . 4,737,439 National ... 8,516,319 Commercial 1,516,753 23,180,984 3.940,629 6,437,568 1,061,490 6.462,791 674,431 4.988,222 250,783 9,691,289 1,174,970 1,686,282 169,529 45,175,304 . 52,447,136 7,271,832

March Discounts. Advances. Totals. quarter. £ £ £ 1926 ... 1,912,839 46,372,303 48,285,142 1927 ... 1.861,619 48,939,189 50,800,803 1928 ... 1,504,895 44,565,475 46,070,370 1929 . ... 1,184,440 45,175,304 46,359,744 1930 ... 1,229,642 52,447,136 53,676,778

March . Deposits. Advances. Excess of quarter; £ £ £ \ 1926 ... 47,302,480 48,285,142 *982,662 1927 ... 45,528,812 50,800,808 *5,271,996 1928 ... 49,958,295 46,070,370 +3,887,925 1929 ... 55,345,495 46,359,744 +8,985,751 1930 ... 54,032,241 53,676,778 +355,463 •Advances. fDeposits.