THE PUBLISHED WEEKLY. WEDNESDAY, JANUARY 22, 1902. THE BANK RETURNS

New Zealand Mail, 22 January 1902, Page 34

THE PUBLISHED WEEKLY. WEDNESDAY, JANUARY 22, 1902. THE BANK RETURNS

The returns of the .several' banks trading in New Zealand for the last, quarter oT 1901 are before us. and enable us once more to gauge the financial position of the community. In the last quarter of the year we are accustomed to see demands made upon the banks for funds needed for the operations of the producers in gathering in the products of the season, and the present returns furnish no exception to this rule. AVithdrawals have been made in the quarter from the free deposits to the amount of over £300.000, but, at the same time, fixed deposits have been increased by over £78.000. Additional advances have also been obtained by customers to the extent of nearly £340,000, so that, including movements in deposits and advances, the funds in the hands of the banks have been drawn upon to the amount of £574.000. This is not an abnormal drain for the last quarter, and is, in fact, less than occurred in the fourth quarter of 1900 by nearly £300,000. In the returns before us the leading totals compare as follows with those of the preceding quarter:—

In addition to the movements we have alluded to in deposits and advances, we observe that both note circulation and coin and bullion show moderate increase. The aggregate assets and liabilities compare as follows for the past four years in the December quarter:— Assets. Liabilities.

Both sides show an increase, the total of assets having been enlarged by • over £1,000,000 in the year, while liabilities have grown by £455,000. The growth in assets is caused mainly by the increase of general advances by nearly £004,000, and an addition of some £303,000 to the holdings of New Zealand Government securities. The stocks of coin and bullion are also increased by £200.000. The growth of liabilities is almost accounted fffr by an increase

of about £390,000 in general deposits. The difference will be found in Government deposits and note circulation. Discounts and open advances show the following movements in the same periods: Discounts. Advances. Total. £ £ £ 1898 ... 1,731,564 9,154,723 10,856,28 i 1899 ... 1,717,893 9.545,286 11,263,179 1900 ... 1,819,608 10,016,483 11,836,091 1901 ... 1,880,132 # 10,509,677 12,389,809 The aggregate shows expansion from year to year, attributable no doubt to the increasing volume of the colony’s transactions, both in production and in imports. The increase on this side is, however, exceeded, as will now be shown, by the accretions to the deposit accounts of the community. It is noticeable that the volume of discounts, which was for many years a diminishing quantity, is now gradually increasing, though not in any very striking -nanner. The increase is less than £150,000 in three years. Deposits exhibit the following changes at the same dates: —

Both branches show unbroken increase, but the growth is mainiy in the open balances. Apparently the rates offered by banks are not sufficiently teirmting to induce customers to add greatiy to the fixed deposits, though even these have increased by £470,000 in the three years. The free deposits have, however, grown by £1,350,000 in the same time. Contrasting total advances with total deposits, we find the following comparisons:—

Here we find, as usual, that all the requirements of the colony are met out of the deposits of the community, without necessity for employment of the capital of the banks. Not only is that the case, but there is a substantial surplus of between £2,000,000 and £3,000,000 in the hands of the banks. This fact, coupled with that of the heavy accumulation of nearly £0,000,000 standing to the credit of depositors in the Post Office Savings Bank, points to a condition of solidity that speaks well for the colony, even if anticipations of a partial diminution of prosperity should be verified. Note circulation always shows an increase in the December quarter, the September, or winter, quarter, being always the lowest in the twelvemonth. The comparison for the last four years is as follows:

The latest return shows a good increase upon both the preceding quarter and upon the corresponding quarter cf previous years. This is a satisfactory indication of the state of trade, and of the good employment that exists for the labouring classes. The aggregate of coin and bullion compares as follows:

During the two years to 30th September, 1901. the banks imported coin to the amount of £910,327, against which the exports only amounted to £35,016, or an excess of imports of £B74,7ll.'Under the leakage that is always going on, iho increase in the banks’ holdings as compared with the end of 1899 is'only £427,060. Looking at the figures for the several banks, we find the movements m the twelvemonth in advances and deposits to compare as follows:

The increase in advances is shared in by all the banks in greater or less degree, though the largest expansion is found in two of the Australasian institutions. In one or two cases the growth is very slight. Ihe increase in deposits has fallen chiefly to the Bank of New Zealand. Two of the Australasian banks, indeed, show a slight contraction. They be more anxious to put money cut txian to take it in. Hie disclosures made in these returns reveal nothing at all abnormal, and are, 011 the whole, distinctly satisfactory and re-assuring, whatever may be hidden in the womb of the future.

Sept. Quarter Dec. Quarter. X X Deposits, free ... 7,087,003 6,753,737 Deposits, fixed ... 8,215,335 8,293,995 Discounts 1,863,538 1,880,132 Open Advances ... 10,186,012 10,509,677 Note Circulation 1,325,553 1,354,206 Coin and Bullion 3,030,015 3,063,843

J£ x> 1808 ... 17,367,471 15,018,519 1890 1000 ... 17,365,715 ... 17,752,328 15,713,333 16,828.525 1901 ... 18,821,773 17,283,645

Free. Fixed. Total. £ £ c jg 1898 5,405,083 7,822,321 13,227,404 1899 . .. 5,995,990 7,853,489 13,759,479 1900 . .. 6,513,380 8,145,437 14,658.817 1901 . .. G,753,737 8.293,995 15,047,732

Excess of Deposits. Advances. Deposits. £ £ £ 1898 ... 13,227,404 10,886,287 2,341,117 1899 ... 13,759,479 11,263,179 2,496,300 1900 ... 14,658,817 11,836,091 2,822,726 1901 ... 15,047,732 12,389,809 2,657,923

Dee. Quarter. Sept. Quarter £ £ 1897 ... 1,015.040 977,496 1S9S ... 1.074,143 1,046,778 1899 ... 1,195,562 1,151 029 1900 ... 1,317,706 1,269,022 1901 ... 1,354,206 i,325,553

1898 ... £ ... 2,752,245 1899 ... ... ... 2,636,177 1900 ... ... 2,802,232 1901 ... ... 3,063,843

Advances. Dec., 1900. Dec., 1901. Bank X.Z. A 4.064,188 4,185,632 Union Bank ... 1,.563,409 1,565,012 Bank N.SAV. ... 2,210,805 2,421,272 Bank Austrl’sia 1,961.544 2,106,466 National Bank 2,036,145 2,048,428 Deposits. Dec.. 1900. £ Dec., 1901. Bank N.Z. £ 6,384,398 6,787,133 Union Bank ... 2,237,868 2,199,366 Bank N.SAV. ... 2.467,483 2,442,945 Bank Austrl’sia National Bank 1,302,809 2,266,258 1,333,544 2,304.745