BANK STATEMENTS.

New Zealand Herald, Volume LXIX, Issue 21076, 9 January 1932, Page 10

BANK STATEMENTS.

IMPROVEMENT IN 1931. SMALL EXCESS OF ADVANCE*:. t LARGE CHANGES DURING YEAR. > EXPANSION OF NOTE ISSUE. [BT TELEGRAPH. OWN CORRESPONDENT ] WELLINGTON, Friday. , . An excess of advances over deposits < f £255.748 is shown by the average statnments for the December quarter of the commercial banks. A year ago the excess was £5,009,552. Compared with the September return: i, free deposits have further declined by £445,223 and fixed deposits have ii - creased by £455,039, tho total being almost £IO,OOO higher. In the corresponding period of 1930, deposits declined by £1,177,043. Between the third and fourth quarters advances increased by £83,224; a year ago there was an increase < f £1,875,847. The three classes of deposits compaie as follows: Dec., 1930. Dec., 1931. Decreaaa. Govt. .. £1,859,407 £1,195,545 £663,5«i2 Fre« . . 15.597,339 16.145.43S 2.452,401 Fixed .. 32.775.557 34,635.595 I.SGO.OiIS Totals . . £53.232,803 £51,976,573 £1,255.9! i 5 Comparison of the latest Returns with those for the fourth quarter of 1930 shows that free deposits have been reduced in the 12 months by £2,452,401, a movement which affected all the banks. Fixed Deposits Still Eising. There was an increase of £1,860,038 in the total fixed deposits, but all the banks did not share in this, The Bank of New South Wales shows a decrease of £161,213 ' "" A the n p —Australia a decrease of £7595. Following are the figures for the several banks: — FREE DEPOSITS. Bank. Dec., 1930. Dec., 1931. Decrease Jf. Zealand . £8,503,038 £7,649,782 £913,2! 6 "Union . . '2,130,550 1,748,458 382,1! I*2 >\S. Wales . 2.014,582 1,691,946 322.616 Australasia . 1,850,845 1,500,941 349,9')4 National . . 3,130,118 2,756,278 373,810 Commercial 908,606 798,033 110,613 ' Totals .. £18,597,329 £16,145,43S £2,452,4 >1 FIXED DEPOSITS. Bank. Dec.. 1930. Dec.. 1931. Increase. N. Zealand £16.093.459 £17.071,588 £978,129 National . 5.127,55)1 6.067,435 939,6 44 Union . . 3,754,495 3,847,778 93,5 33 Australasia 2.957.045 2.974,635 17,590 N.S.W. . 4,171.300 4.010,087 *161,213 Commercial 671.667 644,072 *7,595 Totals . £32,775,557 £34,635,595 £1,860.038 . 'Decrease. The free ana fixed deposits for the December quarter of each of the last five years are shown in the following table:- / December Quarter. Free. ' Fixed. Totals. 1927 ..£21,438,335 £24,262.722 £45.701,057 1928. .. 22.179,748 29.481.658 ' 51,661,406 1929 .. 22.7-25.494 30.628.239 53.356.7 » , 1930 . . 18,597,837 32.775.557 51.373,394 1931 . . 16.145.43S 34.635,595 50,781.033 , "While the free deposits have declined ' by £5.292,397 in the past four years, the fixed deposits in the same period have increased by £10,372,873. The increase in the fixed deposits in recent years has been • a striking .feature of the banking position, and is regarded by many as an indication . cf the lack of confidence. Contraction of Advances. Both the advances and discounts are Jess than they were a year ago.. The advances at £50,317,683 were £2,896,986 l(iss than ' for the December quarter of 1930, •while the discounts at £699,093 show a contraction of £468.981. The shrinkage in the advances and discounts is due to the restriction of imports and the lower prices ruling for onr primary products. The banks have not been restricting advances. On the contrary, their lending? in the past quarter exceeded the deposits as will be seen from the following summary : «

Bank. Deposits. Advancea. Excess. Js. Zealand i 24.721.370 £23.812,792 £903.578* Union . . 5,596.236 6.045,492 449.256 K. 5. W ales 5.702.033 6,185,130 483,097 Australasia 4,475,576 5,057.793 576,217 National .. 8.823.713 8,476,573 348,140* Commercial 1.462.103 1,446.001 16,104'

Totals . . i 50.781.033 £51,016,731 £235,748 *Jsxces3 of deposits.

•The movements in the totals of deposits arid advances and the excess of the latter(except in 1928) are shown in the following table:—

Deposits. Advances. Excess. 1027 .. £45.701,037 , £59.759,664 £4.058,007 192S .. 51.661.406 48,101.10-4 '3.560,302 1929 .. 53.356,733 53,807,931 451,198 3U30 -. 61.373.396 54.382.74S 3,009.332 1931 . . 50.781.033 51,016,781 235,748 'Excess of deposits.

The nolo circulation averaged '.£5.926.902, which is £206.486 less than in the -fourth quarter of 1930. The latest return is £542,360 higher than that for the September quarter. The latter movement., reflecting the expansion due to Christmas and holiday demands is remarkable, as it was much larger than in either of the preceding years. In 1929 the note circulation increased- from the third to the fourth quarter by £272,170; in 1930 the increase was only £94.213. The banks' holdings of coin and bullion, which were £7,866,375 in the December quarter of 1927, had declined to £6,352,J164 at tho end of 1930. The latest return shows a total of £6,872,637.