BANK STATEMENTS.

New Zealand Herald, Volume LXVI, Issue 20303, 10 July 1929, Page 12

BANK STATEMENTS.

FUNDS AGAIN AUGMENTED.

DEPOSITS AT NEW RECORDS.

EXCESS OF £9,645,000

LARGEST IN POST-WAR PERIOD

[IIY TELEGRAPH.—OWN CORRESPONDENT.]

W ELLINGTON, Tuesday

The bank statements for tho Juno quarter give indications of a gradual return of confidence. There is still a tendency for tho time deposits to increase, but, on tho other hand, more money is being held at Iho banks at call, showing that the owners anticipate using theso funds in ways that will yield profits. All classes of deposits show increases, and that is to bo expected in the second quarter of the year, for by then the season's produce is realised and practically the whole of tho returns in hand. The movements in the three classes of deposits compared with tho June quarter of last year aro as follow:

June, 1928. June. 1929. increase. Gov I £1.950.075 £2,791.055 £838,180 Free . . 25,357,1-15 20,810,881 1,153.730 Fixed . . 27,589.088 30.211,013 2,051,025

Totals £51,903,208 £59,816,140 £4,912,911

While tho demand deposits havo increased by £1,453,736, tho time deposits havo expanded by £2,651,025, or by £1,200,000 more than the free deposits. Compared with the March quarter of this year, however, the free deposits show an increase of £1,074,130, wliilo tho increase in tho fixed deposits is only £632,263. Distribution of Deposits.

Of the increase in the demand deposits during the year, all the banks obtained a share, the Union Hank and the Bank of New South Wales showing tho highest relative gains. Tho figures of the several banks are shown below:—

FREE DEPOSITS. Bank. June, 1928. June. 1929, Increasv. N. ZTnd. X'11.9(30,(i06 £12,664.473 X(187,807 Union . . 2,849,425 3,09(3,534 247,10:) N.S.W. . 2,717,030 2,943,015 22(3,009 Australasia 2,51(3,731 2,013,240 00,515 National . -1.332,308 -1,489.440 157,072 Commercial 974,979 1,014,143 39,101

Totals X 25,357,115 £20,810,881 X 1,453.730

Tho increase in fixed deposits of £2,651,025 follows au increase in 1927-28 of £5,840,884, the contrast showing that the tendency is for less money to be tied up in fixed deposits. The amounts held by the several banks are as under: —

FIXED DEPOSITS. Bank. June, 1928. June, 1929 Increase. >'. Zealand X 13.425.599 X 14.953.913 X 1.525.344 Union . . 3.123,339 3.390.510 273,171 N.SW. .. 3,633,537 1.011,100 407.503 Australasia 2,492.507 2.7152.4138 209,901 National 4,334,108 1,135,733 101,205 Commercial 580,538 051,259 70,721

Totals £27,589,983 £30,241,013 £2,051,025

The aggregates of the freo and fixed deposits for tho June quarters in the last five years compare as follows: —

Juno Quarter. Free. Fixed. Totals. 1925 ..£30,197,209 £20,900,420 £51,403,035 1920 ..• 27,594,490 20.074,853 48,2(39.349 1927 . . 24,741,2(32 21,749,104 40,490.300 1928 .. 23,357,145 27,539,988 52.947,133 1929 .. 20,810,881 30,241,013 57,051,894

Between 1925 and 1927 the free deposits declined sharply, but there has been a steady increase last year and this year. Tho fixed deposits have grown rapidly sinco 1926. Movement of Advances. The advances, which contracted considerably in 1928 as compared with 1927, this year show an increase of about 5 per cent., which must lie very welcome to the banks. All the institutions shared in the increase, as shown in the table appended :

Bank June. 1928. .Tune, 1929. Increase. N. Zealand £19,242,877 £19,757,578 £514,701 Union . . 5,17(3,203 5,471,437 295,234 N.S. Wales 5,020,291 5,704,882 84,591 Australasia 4,434,749 4,054,007 219,258 National . 8,422,(350 9,199,309 770,059 Commercial 1,352,731 1,581,571 225.840

Totals ..£44,219,501 £40,303,784 £2,119,283

The discounts at £1,038,437 have declined by £139,027, as compared with last year, but tho discounts have shown this contracting tendency ever sinco 1926.

It is decidedly encouraging to sec increased demands made on the banks for accommodation, for it. is an indication of a slo\? return of confidence. The incrcaso in tho advances is, however, very small, and the banks have a plethora of funds, as will be seen from the following table, which shows tho relation of the hanks to the public as lender and borrower:—

Juno Quniter. , Deposits. Advances. Excess. 1925 . i'sl.4G3,r>;ri £43.935,070 £7.527.P1>r> 1020 .. •18,209,310 45.714.711 445.802* 1027 .. 40,-100,.'100 50,750,100 4.202.740* 1928 . . 52,017,1X1 •15,420,955 7.520,178 1020 .. 07,051,894 47,407,211. 0,041.083 * Excess of advances. Larger Purchasing Power.

Tho note circulation for the past quarter was £6.547.072, against £6,432,109 in tho corresponding quarter of last year. Tho increase is small, but it shows that tho people arc handling more pocket money than a year ago. A good increase is shown in tho purchasing power of tho community, as represented by the sum of demand deposits and note circulation, which together represent what is available for expenditure. In tho past quarter tho two items amounted to £33,358,753, which contrasts with £31.709,254 in tho corresponding quarter of last, vcar, and £31,328,264 in 1927. This is 'verv encouraging, and justifies hopes that 'during tho balance of tho year business will bo brighter and more active than in tho last two years.