BANK RETURNS

Manawatu Standard, Volume L, Issue 194, 15 July 1930, Page 3

BANK RETURNS

FIGURES FOR PAST QUARTER.

EFFECT OF LOW PRICESREVEALED. The low prices ruling for wool, dairy produce, frozen ment and other primary products are clearly reflected in the quarterly, averages of ' the six banks doing business in the Dominion. Deposits have contracted and advances have expanded very considerably. The salient features of the returns as compared with the June quarter of last year may be summarised as under: » £ Government deposits increased by 2,305,094 Free deposits decreased by ... 3,585,017 Fixed deposits increased by 281,161 Advances increased by 6,505,688 Discounts increased by .'. 160,263

The expansion of the Government deposits is satisfactory for it is evidence that the State has ample funds for meeting engagements locally, but the shrinkage in the freo deposits is very pronounced. These are the current accounts against which cheques can be drawn. The figures of the free deposits of each bank compare as under:—

The Commercial Bank of Australia is the only institution that shows a small increase. With the fixed deposits three banks show increases and the other three slight decreases, but the aggregates disclose a gain on a year ago and this is shown in the table appended:— Increase June, 1929. June, 1930. or dec. Bank. £ £ £

The two New Zealand banks claim practically the whole of the increase. A comprehensive view of the movements in the free and fixed deposits is obtained by comparing the figures for the June quarter for a number of years as under :

The free deposits it will be noted ore now lower than at any corresponding June quarter from 1925, while tlio fixed deposits are the highest of the period. The most interesting figures of the quarterly returns are tlio advances and the aggregate shows an increase of £6,505,688 which was spread over all the banks as is shown in the table appended:

The advances and discounts for the June quarter of each of six years are shown in the table following: Juno Advances. Discounts. Total.

The accommodation sought from the banks during the past quarter is larger than in any previous June quarter, and when the volume of deposits, excluding Government deposits, is taken into consideration the banks have advanced to the public in excess of the amount of the deposits and this is disclosed as under :

Tlic change can be seen ill the above figures for, whereas a year ago there was a huge excess of deposits and credit was in abundant supply, that surplus of deposits is now exhausted and the public has borrowed more from the banks than the banks have borrowed from the public. The note circulation at £6,433,265 compares with £6,547,872 a year ago.—Dominion.

Bank. June, 1929. June, 1930. Dec. £ £ £ N. Zealand Union N.S. Wales Australasia National Commercial . 12,654,473 10,852,131 1,802,342 . 3,096,534 2,687,128 409,406 . 2 943,045 2,508,315 434,730 . 2,613,246 2,293,050 320,195 . 4,489,440 3,840,354 649,086 . 1,014,143 1,044,886 *30,743 26,810,881 23,225,864 3,585,017 *Increase.

N. Zealand , . 14,953,943 15,077,516 123,573* Union 3,396,510 3,351,757 44,753+ N.S. Wales . 4,041,100 4,033,076 8,024+ Australasia . 2,762,468 2,797,950 35,482* National .. 4,435,733 4,662,482 226,749* Commercial 651,259 *■ 599,393 51,866+ 30,241,013 30,522,174 281,161* fDecrease.

Fixed Free June Deposits. Deposits. Total. quarter. £ £ £ 1925 . 20,966,426 30,497,209 51,463,635 1926 . 20,674,853 27,594,496 48,269,349 1927 . 21,749,104 24,741,262 46,490,366 1928 . 27,589,988 25,357,145 52,947,133 1929 . 30,241,013 26,810,881 57,051,894 1930 . 30,522,174 23,225,864 50,748,038

Bank. N. Zealand Union N.S. Wales Australasia National Commercial June, 1929. June, 1930. Inc. £ £ £ , 19,757,578 23,686,076 3,928,498 ... 5,471,437 6,154,965 683,528 . 5,704,882 6,588,549 883,667 . 4,654,007 4,838,172 184,165 ... 9,199,309 9,951,950 752,641 . 1,581,571 1,654,760 73,169 46,368,784 52,874,472 6,505,688

quarter. £ £ £ 1925 . 42,421,049 1,514,720 43,935,759 1926 . 46,985,833 1,172,903 43,714,741 1927 . 49,244,998 1,508,108 50,753,106 1928 44,249,501 1,177,454 45,426,955 1929 46,368,784 1,038,427 47,407,211 1930 . 52,874,472 1,188,690 54,063,162

June Deposits. Advances. Excess ot quarter. £ £ £ 1925 51,463,635 43,935,769 7.527.866D 1926 48,269,349 48,714,741 445.392A 1927 46,490,366 50,753,106 4.262.740A 1928 52,947,133 45,426,955 7,620,178D 1929 57,051,894 47,407,211 9,644,683D 1930 53,748,038 54,063,162 315.124A D, deposits. A, advances.