THE FINANCIAL BAROMETER.

New Zealand Times, Volume LXXI, Issue 4260, 21 January 1901, Page 4

THE FINANCIAL BAROMETER.

By the courtesy of the head offices of the several hanks trading in New Zealand we arc enabled to present to our readers the leading features of -the movements of banking business during the three months ended 31st December last. The hanking transactions of the last quarter of 1900 are of the character usually seen in the' fourth quarter, namely, a withdrawal of funds from the banks for the industrial purposes of the season. On the present occasion, however, the movements are heavier than usual, and seem to point to an inference that the banks have been successful by some

means in getting more money out into occupation. The leading totals of the summary compare as follows with these of the preceding ciuarler: — j September December Quarter. Quarter. .

In deposits we find a not reduction ot £287,d0/. with. However, the remarkable! fea> ivre that the fixed deposit r> have lie on; increased by 1.m’01,298, while the free uc-j posits have bceir reduced by -C-l??8,S->:>.j To put ii another "■■■•ay, we may say ( ha! j over JC2OO.OUO of free bidances have h,v-tij lodged on fixed deposit aud £2B7,bTd. have l>cen ■withdrawn for pvesenu--e m| another direction. On the o'.lor hand, advances have been increased by £7>73,887, of which £100.701 u in the shape of discounts and the baLince in that of open advances. We have thus withdrawals from the banks, under the headings of deposits and advances combined, of £861,-14-1. In the corresponding period of a year‘liefore the combined withdrawals wore under £'.'20.000, so that on the present occasion the demands have exceeded those of last year by some £340,000. We believe that this season woolgroweru have, to a larger extent than last year, abstained from selling theiv Wool in the colony, and consigned it to the London .market in hopes of a belter result. Wc may say, in passing, that this hope .seems to bo in a fair way of being, to some extent, realised. The absence of prompt realisation may in some measure account for •the heavier cash withdrawals of the present season, but wc doubt whether it would do so entirely, and arc inclined to think, as we have said, that the banks have been rather more successful in getting out money into employment. As -to the moderate increase in dDeonnts, wo are disposed to believe that it may -be accounted for 'by promissory notes being taken from farmers for season advances made at the current low rates of interest. Wo will now turn to the comparison with previous .yearly 'periods. The aggregate assets ami liabilities compare as follows for the past -four years at the 31st December:

. The total of assets is still in- excess of ’liabilities, although the difference has been considerably decreased in the throe years. In the latest year the former 1 have only been increased by less than ; £400,000, while (he latter have grown hy over £1,100,000. The explanation ! will probably he found in the details below. Discounts and open advances ha;c in the same, period, varied as follows : Discounts. Advances. Total. .£ -X X

I The totals show pretty steady increase | from year to y ear, as might, be expected' jfrom the expanding trade of the colony, i Tho actual increase has been somewhat I larger than these figures disclose, as, in the case of the Bank of Now Zealand moro especially, the liquidation process results in amounts 'being written-off the books from time to time, thus concealing 'the real growth that takes place. The recent expansion of discounts we have alluded to above. Turning to deposits, wo obtain the following comparisons for the four years in question :

years lias occurred mainly in the free deposits, which have grown by about £l/200,000, while the fixed deposits have only .expanded by about £300,000. A change is/however, noticeable in the figures for the latest quarter, quoted above. Contrasting advances with deposits wo 'get the following results: Excess'of Deposits. Advances. Deposits.

In spite of the heavy withdrawal? of the last quarter, as shown above, the excess of deposits shows a larger total'than in either of the three preceding .years. This is very striking. we have remarked on previous occasions, all the accommodation required by the trading community is -furnished out of the funds of the community itself with a balance of increasing volume left in the hands of the banks. It is to bo remembered, also, that the above figures represent the position at the low-tide of banking, when all the advances of the season are made; at 'the high tide of the June returns the volume of excess will be considerably larger. The ever interesting figures of the note circulation compare as follows for the September and December quarters of the years mentioned ■ * September December Quarter. Quarter. £, £

Note circulation is always at its lowest in the September quarter, and rises in the subsequent periods. The above figures show substantial increase from year to year in a matter that is regarded as a barometer of trade. An increase of over £300,000 in three years is very significant. The aggregate of coin and bullion compares as follows;

The banks have of late been importing considerable supplies of coin, but, as the bank returns only give the averages for quarters, and there is, meanwhile, the usual leakage going on. the bank figures show a much smaller increase than the excess of actual imports over exports. The official returns of imports and exports to tile 31st December are not yet available under the leisurely system in vogue. The statistics to the 30th September, however, afford the following information, on this point: Twelvemonth ending 30th Sept. Imports of Specie ... 433,345 Exports of Specie '... 21,052 Excess of Imports ... 412,293 In the,‘■arneperiod the bank returns only registered an increase of £119,547, and the above figures show an increase for tho year to 31st December of only £166,055. On the whole, the above figures speak of expansion and a general condition of prosperity among our settlers. The Man* and June quarters may be 'expected to show substantial improvement from the realisation of the season’s produce here and in the Home markets. i Mr James Allen, M.H.R., is said to be suffering seriously from facial paralysis. and, in consequence, he may probably withdraw from political life.

X X Deposits, fico ... 7.002.2:0 (i.aiXOSO Deposits, fixed ... 7,911,DO 8.1 ia.ki: Discounts ... 1.718.007 i .SiS.GOS Open Advance-.- ... 9,.i-13.297 10.106, iH-.J Note Circulation ... 1,269,(122 i.uir.To; Coin ami Bullion ... 2.7J2.CH 2.802.232

Assets. Liabilities. 1897 £ ' 17,222,415 14,9342211 1898 ... 17,367,171 15,018,519 1899 1800 ’ 17,365.715 17,752,328 15.713,333 16.828,535

1897 ... 1.808,149 8,686,25-1 10,491,403 1898 .... 1,731,564 9,154,723 10,886,287 1899 1900 ... 1,717,893 ... 1,813,608 9,5-15,286 10,016,482 11,263,174 11,836,090

0 Free. Fixed. Total. & X Jb 1897 5,304,105 7,834,643 13,138,748 1898 ,5,405,083 7,822,321 13,227,40'' 1899 5,905,990 7,853,489 13,759,473 1900 6,513,380 8,145,437 14.658,817 Tile substantial increase in 'the tOmio

4! X 43 ' 1897 ... 13,138,7-18 10,491,403 2,644,345 1898 ... 13,227,404 10,883,287 2,311,117 1899 ... 13,759,479 11,263,179 2,596,301 1900 ... 11,658,817 11.836,090 2,822,727

1897 977,496 1,015,010 1898 ... 1,016,778 1,074,118 1899 ... 1,151,029 1,195,562 , 1900 :.. 1,269,022 1,317,706

1897 ... ... 2.355,818 1898 ... ... ... 2,752.245 1899 ... ... ... 2,6oG,177 1900 ... ... ... 2.802,232