BANK STATEMENTS.

New Zealand Herald, Volume LVIII, Issue 17754, 13 April 1921, Page 6

BANK STATEMENTS.

MARCH QUARTER RETURNS.

INCREASE IN ADVANCES. FIVE MILLIONS OVER DEPOSITS, [BT TELEUUiriZ. —OWN COIIRESPOKDENT.] WELLINGTON. Tuesday. 'Flie completo returns of the commercial banks for the March quarter are now available. The principal features in the statement, issued by the Bank of New Zealand are as follow

The outstanding feature in the aggregate returns of the six banks trading in the Dominion for the first quarter of 1921 is the excess of the combined advances and discounts over the combined fixtd and free deposits, amounting to £5,290.610. For many years the deposits have been materially in excess of advances and discounts. "it is true that the advances during the December quarter of 1911 were £529,000 in excess of deposits, but th® war had then bc«n in progress but a few months and there was being produced abundance Of wool, and dairy produce. all representing millions of money. The excess of deppsits over advances a year ago reached £18,623,000 The re-, versal of the position is attributable to several causes, among which may be mentioned the compulsory £6,000,000 loan, tho demand for oyer £6,000,000 of income tax, excessive importation, the cessation of tho Imperial purchase of New Zealand produce, and a substantial fall in tho nunfeet value of the staple products. Tho free deposits or current account balances, are less by £4,029,694 than they were in tho March quarter of 1920, while tho fixed deposits show an increase of £520,329. The Government deposits a'.Fo show a decrease of £2,445,643, compared with the position a year ago. All classes of deposits compare as follow

Taking the free and fixed deposits together and the advances and discounts together, the following are the figures for recent years

The notes in circulation during the quarter amounted to £7,830,201, while the coin and bullion represented £7,662.556. Corresponding figures for recent years are:—

The figures given in the first column represent the total note issue, which exceeds the amount actually in circulation by tho sum of the " legal* tender notes of other banks" held by the vaxious banks during the quarter. Although the total shows an increase in circulation some of the banks have reduced their issues of note, as the following table shows: —

The returns relate orJv to business transacted in New Zealand. On this basis the assets and liabilities of the six banks compare as follow:—

March, 1920. March, 1921. £ £ Preo deposits . . . "16.179.666 34.739.043 Fixed deposit* •• 8.080.444 8.206.708 Advances • • • • 14.2PO.449 22,699.109 Discounts ... •• 763,639 1.068.429 Note circulation .. B,120,848 4,811.8/1 Coin amfbullion .. 3.454.6% 3.422.283

March, 1920. March, 1921. Decrease. £ £ £ Gort .. 8,743,046 6,289,403 2,443,643 34 814 R96 30.785.202 4.029,691 & 16.850.195 16,370,524 ' 520.323 Totals .. £9,408,137 53.455,125 5.953,008 •IncreaseThe free and fixed deposit ior the March quarter of .recent years aro aa follow: — March Free. Fixed. Totals, qnartor. £ 10.554.479 24,030.250 1915 15 958 732 10.870,508 26,839,240 916 19 091 949 12,182.104 31,274,053 1917 I. 20 970;702 13.385,&38 34,356,540 1918 « 21,614,302 13,891,195 35,505,497 1919 .. 24.363,681 14,485,145 88.848.826 1920 34.814,896 15.&50.195 50.665.091 1921 .. 30,785,202 16,370,524 4<,155,-26 The advances ajid discounts com pars a3 follow: — March, March, 1920. 1921. Increase. £ £ £ Advances 30,761,854 49.496.130 I8.734.27S .Discounts 1.280,189 2,950,206 1,670.017 Totals ..£32,042,043 £ 52,446,336 £20,404.293

March Excess o! Quarter. Deposits. Advances. Deposit! tf £ 1 £ 1914 .. 24,030,250 23.666.7Sl 363.499 1915 .. 26,829,240 23,760,561 3,068,679 1916 31,274,053 23,733,592 7,540,161 1917 .. 34,356,540 27,694,930 6,661,610 1918 .. 35,505,497 29,317,895 6,187,603 1919 .. 38,848,826 32,203,646 6,645,ISO 1920 .» 60,665,091 32,042,043 18,623,048 Excess of Advances. 1921 .. 47,155,726 , 62,446,336 5,290.610 The deposits and advances are distributed among tno various banks as follow Excess of Bank Deposits. Advances. Advances. £ £ £ New Zealand 22,935,751 24.667,538 1,7.71,787 Union .. 5,326,687 6,605,233 1,178,546 N.S. Wales 6,093,925 5,987,553 *111.372 Australasia. 4,437,459 6.023.518 1,693.059 National .. 7,413,120 8,319,049 905,929 Commercial • 943,784 937.445 *6,339 *Exc€8S of Deposits.

March Coin, Quarter. CJrcuLtttiom. Bullion, Eto- £ £ 1914 .. .1,665,939 S,317,861 1915 .. 2,639,584 6,420,559 1916 .. 3,171,553 7,100,863 1917 .. 4,637.451 7,863,635 1918 .. 5,915,508 7.9S4.183 1919 .. 6,512,191 8,075,999 19-20 .. 7,765,560 7,807,-212 1921 .. 7,830,204 7,662,555

Bank. March. 1920. • March, 1921. £ £ New Zcf.la.nd .. 5.120.84S <.811 871 Union .. .. 569.574 733.5.04 Now South Wales 618,653 679,694 Aaslralwiia .. 421,677 <>83,268 National ., .. 971,833 S63.821 Commercial .. 61.9S3 47,04c Total ». £7,765,559 £7,830,204

| M&rcli, 1520. JJarcli, 1931. 1 £ £ Assets .. 50,096.529 6S.184.S72 1 Liabilities .. 67.659,576 65.75S.195