BANK STATEMENTS.

New Zealand Herald, Volume LXIII, Issue 19455, 11 October 1926, Page 9

BANK STATEMENTS.

LARGE EXCESS OF ADVANCES. | REDUCTION OF DEPOSITS. 1 LOWER PURCHASING POWER. [BY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON. Saturday. An excess of advances over deposits of £2,341,093 is shown by the aggregates of the average statements for the September quarter issued by the sis banks trading in New Zealand. A year ago there was an excess of deposits of £2,778,065 —a satisfactory position, in spite of the fact that even then wool prices were falling. The present returns disclose a sharp contraction in the spending power of the community and a heavier demand upon the banks for accommodation. The Government deposits and the fixed deposits exhibit slight increases, but the free deposits are nearly two millions less as compured with a year ago and all deposits in the aggregate are less by nearly a million and a-half, as appears from the following summary:— Sept., 1925. Sept., 1926. Decrease. Govt. .. £3,706,327 £4,027,503 *£321,176 Free 26,811,762 24,907,961 1,903.801 Filed „ 20,941,663 21,074,892 *133,229 £51,459,752 £50.010,356 £1.449,396 'lncrease. Movement of Deposits, The shrinkage in the free deposits, or current account balances, is most pronounced. A yeai- ago a similar comparison showed an incfease of these deposits by £1,591,123. In tho reduction shown this year all the banks share, except the Commercial Bank, which has a small increase. The figures of the several banks are appended■ FREE DEPOSITS. > . Bank Sept., 1925. Sept.. 1926. Decrease. New Zealand £12,426.788 £11,446,558 £960,230 Union .. 3.082,993 2.928,461 154,532 N.S. Wales . 2,891,663 2,568.575 323,188 Australasia .2,702,055 2,330,834 371,221 National . 4,749.947 4.637,887 112,060 Commercial 958,316 975,746 *17,430 Totals .. £26,811,762 £24,907,961 £1,903,501 "Increase. The fixed deposits show the trifling increase of £133,229. The Union Bank and the Bank of New South Wales show redactions. Details are as follow: . FIXED DEPOSITS. . Bank. Sept., 1925. Sept., 1926. Increase. New Zealand £10,428,479 £10,845,289 £416,810 Union .. 2,571,655 2,386,672 *184,983 N.S. Wales . 2,947,913 2,724,295 *223,618 Australasia . 1,720,632 1,741,912 21,280 National 2,995.259 3.007.4&3 12,224 Commercial 277,725 369,241 91,516 Totals ... £20,941,663 £21,074,961 £133,229 "Decrease. The free and the fixed deposits represent the amounts borrowed by tho banks from the public and the aggregates of these for I the September quarter of five years are | given in the following summary Sept. _ ~ , Quarter. Free. Fixed. Totals. 1922 . £24,498.152 £17,463,714 £41,961,866 1923 . . 25,800,739 18,138,097 43,938,836 1924 . 25,220,639 19,901,386 ' 45,122,025 1925 .. 26,811,762 20,94i;663 47,753,'425 1926 ..' 24,907,961 21,074,892 45,982,853 Compared with last year, there is a shrinkage in the total deposits of £1.770,572, that is to say, the banks have ■ had so much less of the people's money to handle. Heavy Demands on Banks. Turning now to the advances there js to be noted the substantial increase of £3,127,374. The movements as they affect the various banks have been as follows: Bank. Sept. 1925. Sept. 1926. Increase. New Zealand £18,992,964 £20,347,704 £1,354.740 Union . . 5.309,948 5.722,935 352,987 N.S. Wales ... 5,324.861 5.916.037 615,176 Australasia . . 4,67(,288 4.793.46S 716,180 National .. 8,116,806 8.606,336 489,030 Commercial . 1,093.210 1,281,971 188,761 Totals . . £43,565,077 £46,692,451 £3,127,374

As a general rule, bank advances make bank deposits and it will be seen that, notwithstanding an increase of over three millions in tho advances, the deposits have contracted by nearly a million and a-half, the only explanation being that so much money has left the Dominion to meet, foreign commitments. The discounts show an increase of £221,212, the figures of the several banks, being as follow : Bank. Sept. 1925. Sept. 1926. Increase. New Zealand £s-27,256 £ 1.029.357 £ 202,101 Union . . 45.G93 50,796 5,103 N.S. Wales- . . 163.116 171.271 8.155 Australasia . . 98,524 96,154 *2,330 National . . . 230.85* • 234,302 *2,550 Commercial . . 38,842 49,575 10,733 Totals .. £1.410;28k£ 1.631,495 £221,212 4 Decrease. The aggregate of tho free and the fixed deposits, which represent bank borrowings, and tho,advances and discounts, which represent bank lendings, and the excess of the one over tho other for the September quarter of five years are shown in the following table:— Quarter. Deposits. Advances. Excess. 19™ . . £41.961,866 £42,994,448 £1,032,582* 19-23 . . 43,938,836 42,826,728 1,112,108+ 1924 . . 45,122,025 43,923,080 1,198,945+ 1925 . . 47.753.425 44.975,360 2.778,065+ 1926 . . 45,982.853 48.323.946 2.341,093* * Excess of advances. + Excess of deposits. Note Circulation Reduced. The note circulation shows a decrease of £80,870 and the coin and bullion 'tin increase of £68,104. The figures, for tho September \quartor of recent years compare as follows: Sept. Coin and Quarter. Circulation. Bullion. 1022 .. £ 6.486.766 £ 7,833.521 1923 I. 6,354.512 7.903.251 1924 . . . . 6,366,500 7,819,104 3925 .. 6,566,308 7,724.228 1926 .. .. 0,485,4,' iS 7,792,332 It, is interesting to compare the spending power of the people to-day with that of a year ago. ' For this purposo the freo deposits, against which cheques can be drawn, and the note circulation which is available for immediate' 1, expenditure aro taken. The comparison is as follows : Sept.. 1925. Sept., 1926, Freo deposits.. £26.811.762 £24,907,961 Circulation . . 6.5CG.308 6.455.458 Totals .. £33.379,070 £31.393.399 These figures show that the spending power has contracted in the 12- months by £1,934,681. WHITCOMBE AND TOMBS, LTD. NET PROFIT FOR YEAR, £33,827. I ! [by telegraph.—own correspondent. ] CHRISTCIIUKCH, Saturday. At the annual meeting of shareholders of Whitcombe and Tombs, Ltd., to-day, the report and balance-sheet showed that tho total profits for the past year were £53,512 13s lOd, including £14,685 Os 2d brought forward from the previous year. The net profit for the year was £38,827 13s. ' This was dealt with by the directors as .follows: —To depreciation of machinery, plant, etc, £10,150; general reserve fund, £3600; reserve for taxes, £9000; staff benefit account, £2000; interim dividend, paid last March, £4837 10s. The balance, £24,025 3s lOd, was dealt with as follows; a final dividend of 5 per cent, on all ordinary capital, making 8 per cent, for the year, and a dividend of 8 per cent, on staff shares, £8509 7s 6d; carried forward,. £15,515 16s 4d. CHICAGO WHEAT MARKET. Australian a.nd N.Z. Cable Association. (Reed. 5.5 p.m.) CHICAGO, Oct. 10.' Wheat. —December, 1 dollar 37J, cents per bushel; May 0 .l dollar r 42£ ceois, , 1- W