BANK STATEMENTS.

New Zealand Herald, Volume LXVI, Issue 20228, 12 April 1929, Page 12

BANK STATEMENTS.

STOKE OF MONEY GREATER.

DEPOSITS IN HEAVY EXCESS.

MARGIN OF £8,980,000 SHOWN

GREATER SUMS FOR FIXED TERMS

[BY T £ LEG 11A PII. —OWN CORRESPONDENT. ]

WELLINGTON, Thursday

Tho continuance of exceptional monetary case is evident from the banking returns for tho March quarter. There is an excess of private deposits over advances of £8,985,751, whereas a year ago tho excess was £3,887,925, tho difference

representing an increase in banking resources of £5,097,826. The return shows that the amount of fixed deposits, which has increased every quarter since March, 1927, to £29,481,657 in the December period, averaged £29,608,752 for the March quarter, a further increase of £127,095.

Taking the three classes of deposits and comparing the figures with those for last year, the movements have been as follows :

March. 1928. March, 1929. increase. Govt. .. £2,378,577 £2,804,439 £185,8G2 Free .'. 24,482,151 25,7.')G,74:t 1,254,592 Fixed .. 25,47(5,144 29,608,752 4,132,608

Totals .. £52,330,872 £'58,209,931 £5,873,002 Distribution of Deposits. The following tables show the movements in deposits held by the various banks FREE DEPOSITS. Banlc. Mar., 1928. Mar., 1929. Increase. N.Zealand £11,502,(543 £12,272,002 £770,019 Union . . 2,838,375 2,919,214 80,839 N S. Wales 2,589,49 1 2,7(50,998 177,507 Australasia 2,473,118 2,547,417 74,299 National . . 4.148,002 4,271,455 123,393 Commercial 930,402 955.997 28,535

Totals ±'24,482,151 £25,736.743 £ 1,254.592 FIXED DEPOSITS. Brink. Mar., 1928. Mar., 1929. Increase. N.Zealand £12,5(5,565 £14,622,324 £2,076,759 Union . . 2,827,472 3,450,484 623,012 N.S. Wales 3,323,768 3,922,462 598,694 Australasia 2,207,672 2,610,863 403,191 National . 4,040,592 4,345,035 304,413 Commercial 531,075 657,584 'J2(j,51)9 Totals JE25.47G, 144 £29,008,752 £4.132,608 The aggregates of the freo and fixed deposits for the March quarter of the last five vears are as follows: —

March Quarter. Free. Fixed. Totals. 1925 ..£29,765,51? £20,131,711 £19.897,228 1926 . . 26,865,851 20,436,629 47,302,480 1927 .. 24,440,773 21,088,031 45,523,812 1928 . . 24,482,15 L 25,476,144 49,958,295 1929 . . 25.736,743 20.608,752 55,345,495

In 1925 free deposits exceeded fixed deposits by over £9.000,000, while for the quarter just ended the fixed deposits exceed (lie free deposits by nearly £4,000.000. Since 1925 the free deposits have contracted by £4,000,000, while the fixed deposits have increased by £9.500,000, and it is only in the last two years that tho increase lias been most marked. It would seem that those with capital are either afraid to invest or can find no suitable investment and are content to obtain a small rate of interest and let, their bankers do the investing, but bankers are not finding the task an casv one.

Movement of Advances. There has been a slight increase in bank advances. The figures siiow an increase as compared with last year of £609,829, but not all the banks shared in this increase, for the Bank of _Nr\v Zealand and Bank of New South Wales show decreases. The figures are :

ADVANCES. Bank. March, 1928. March. 1929. Increase N. Zealand i1!),«16.035 £19,240.355 £375.680* Union .. 5,277.741 5,376.078 98,337 N.S. Wales 5,878,206 5.788,360 89.846' Australasia 4,554,655 4,737,439 182,781 National . 7,974,072 8,516,319 542,247. Commercial 1,261,766 1,516.753 251.987

Totals £ 14,565.475 £45,175,301 i 1509,829 'Decrease.

The discounts were less by £320,455 than they were a year ago. They totalled £1,184,440, compared with £1,504,895 in the March quarter of 1928. The relation between deposits and advances in the March quarter of recent years and the last four quarters has been as follows

Quarter Deposits. Advances Excess. Mar., 1925 JL'49.897.228 £43.730.202 U'6.1GG,966 Mar., 1926 47,302,480 48,285.142 *982,002 .Mar., 1927 45,528,812 50,800,808 *5,271,99(5 Mar., 1928 49,958,295 4(5,070.370 13.887,925 June, 1928 52,947,133 45,42(5.955 17,520,178 Sept.. 1928 52,59(5.018 45.119.424 <7.470.594 Dec., 1928 51,601,40(5 (8,101.1(14 (3,560,302 Mar., 1929 55,315,195 40,359.744 <8,985.751 UOxccss of deposits. "Excess u'. advances.

The note circulation shows a small shrinkage compared witli last year, the figures being. March. 1929, £5,370,894; March, 1928, £6.376,668. The figures show that there, is no credit shortage in the Dominion. It is obvious that for some reason or other the owners of the bank deposits are not prepared to invest in enterprises, and so money has accumulated in the banks. The banks are in a position to lend a great deal of money, and no doubt would do so if adequate security wcro forthcoming.