THE FINANCIAL BAROMETER

New Zealand Times, Volume LXXI, Issue 4331, 15 April 1901, Page 4

THE FINANCIAL BAROMETER

By the courtesy of the head offices of the several banks trading in Xe ' v !nnd, we are enabled to review the leaning features of the banking movements of the colony during the fir.-t quarter a. 1001- The third aud fourth quarters ol 1!K:0 witnessed, as usually happen- ui those periods, .substantial withdrawals from the banks, for the- purpose- of the shearing and harvesting seasons. In (he first aud second quarters we eointaonly see the returning tide, arising from the realisation of produce. Ike lr‘vv made upon the hanks in the third and fourth quarters affect oolli dope, iU and advances, aud Ihe repaywenl s aho usually inllttenee both branches, >»'- plenishing, and even increasing, the ueposits, and reducing the total ol advanceOn the present occasion the usual result is apparent, as far as regards -,cuosdts, which have increased in the quarter hv nearly £407,000. In the fir.-t quarter of 1900 the inerdaso in tins branch was over £700,000. As rc-pceis advances, however, wo Hud that instead of a reduction I here is a (nether .increase of nearly £280,000, The reason lor this deviation from the ordinal-.-experience is not. easy to dl-ecru. No doubt more' t han one factor has lead a share in causing the divergence. One factor is probably the position of wool, which is low in price, while the sale- lit the colony have this'season been much lighter than usual. ~ Woolgrowers have also had to meet very general reclamations for over-advances on the wool of the previous season. The dredging “boom” is also, probably, responsible for large demands upon hanks, while the increased volume of thh imports of tae colony is probably .another factor in the problem. The cause of the increase in imports is at present somewhat of a mystery, which the returns published by the Government ought to help its to elucidate, but do not. We must wait for light on this subject until the annual statistics are which are later in appearing than they were last year. Returning to the subject of the bank returns, we find tnat the leaning lolals compare as follows with those of the pro-

Deposits show increase. of about £416,00fl in the free class, and of nearly £.>1,000 in the deposits at interest. Discounts are increased hy over £62,000, and open advances hy more than £217,000. Note circulation exhibits about ths usual expansion of the March quarter, while coin and bullion have been increased by over £83,000. Taking into account both deposit* and advances, tho balance to the credit of tho community has only been .increased by seme £187,000, whereas in the corre--'ponding-quarter of 1000 the accretion was over £830,000. Wo will now turn to tho comparison with previous yearly periods. Tho aggregate assets and liabililies compare as follows for the past four years, at the 31st March;--

The increasing volume of deposits line? increased the total of liabilities out of proportion to the increase of assets, Imfc on tbo present occasion tlio excess of assets over liabilities is larger than ■was tlie case a year ago, by soma. £260,000, chiefly because of -the present increase in advances. Discounts and open advances have in the same period vnrjcd as follows;

• These figures show a substantial in- ■ crease from year to year, that in Use ’ latest twelve-mofitli being not far short of a million, while the expansion in the ■ three, years amounts; to £1,707,612. The. increasing volume of our trade transactions and the advancing prices of most commodities, have, no doubt; much to do with this expansion. The actual increase has probably been even larger than these figures show, as the gradual liquidation of the' old accounts of the Bank of New Zetiland results in frequent reductions in the stated total jnf the advances of that institution. Turning to deposits, wo obtain the folj lowing coftiparisons ' for the four years | in question:

Here, also, there is expansion from year to year, chiefly occurring in the froo section, the increase for the three years amounting to £1,000,092, or £147,000 less than the growth in advances, ('nut trasting advances with deposits, we get the following results:

As a regular thing, therefore, we see that all the advances required from (lid banks are provided for out of the accumulations of the community, without making any demands upon the capital of the banks. Tu the returns for the June quarter the excess vyll ptohably he. still larger. The constantly increasing volume of note circulation, which speaks volumes for the condition of luc .community, and the briskness of trade, compares as follows for thd December and March quarters in the past four years;

The increase in the March quarter Jn the three years amounts to £281,601.

The aggregate cf coin and<bullion compares u-j follows;

Tl:stock has boon increased in the I ivelvc.monfh by £208,491, lint owing to i lie con 1 taut leakage, the total is not k-igel.v in e.xc»;;s of the. lota! of tbrcc years i-;;ri. The banks have hi'.oi imparling to replenish th'-ir holding-,. '! in- Imparls iind export;, for <he .uarch < l l l "rt'r ai'i' nol ye! on.dn 11 j<, f. 1 1( the import--. and <_• ■:;.oris for fifteen mouths *• 11 • 1 i,twith llm :;M Dee ember coma„ ii'i!Jo v,■ ■ ,(? f i,i JlO1 1 1 :-l 111 1", liiOll t lift ... .l.ifi.gH’i thpoi-1.-, in sumo 28.-152 Excess of imports ... 527,81!;! In spit'-, liierefor!’, of importations exceeding £500,000, the stocks arc only icere.-. iec! as shown above. Looking at tin* figures for the several banks, v.e find the moveno ids in advances and deposits to ci.inpa; , i< as follows for the twelvemoil l h : - -

In Hie c.r;p of tlio Bank of New Zealand Micro is a substantial increase in both advances and deposits, that of deposits being (lie lieavinr. In the rest the increase of advances is more than that of deposits. fn (lie case of the Bank of Australasia the excess is over .£200,000. Tiie I’nion Bank has increased its lend- “ bigs and reduced its deposits. The delay in refunding the withdrawals of the 1 previous quarters, which is a. striking * feature of the present return, may lie ■ only temporary, anil the figures for the - current quarter, when available, may show a, fuller volume of (his movement, i We shall await their appearance with ' int i■ rest. Meantime, the position as between the banks and I heir customers I as disclosed by the present return, is * very satisfactory, and augurs a con- ' linnanen of an easy market for money. * It also suggests a very good prospect for j Use loan proposals of the Covermssenr 1 In he decided on the 23rd instant. J

ceding quarter; — December Mareli Quarter. Quarter. .£ ,e Deiinsiis, fiee 0,r.l:l,a«0 Deposits, fixed 8.1-15.4:17 H,m«.:tr.i Discount.! 1 .HI9.GIIH 1.882,017 Open Advances 10.010,48:1 10.28 3.7<Ki Note Circulation ... l,M17,70(i I .!M»,22.j Coin ami Bullion... . 2,802.2:12 2,H85.:)70

Assets. Liabilities. X.-, X 1838 10,941,907 1.9,47.9,22.9 1899 ... i7,moss 1.9,701.299 191)0 ... 17,292,920 10,792,092 1901 ... 18,1.91,224 17,928,010

Discounts. Advances. Total. .£ X X 1898 ... 1,723,539 8,081,669 10,108,208 1899 ... 1-. 737,271. 9,106,222 10.S13.IH0 1900 , ... 1,688.806 9.475,633 11,164,100 1901. ... 1,882,017. 10,233,703 12,115,720

Fire. ’ Pixel. Total. £ £ £ 1898 ... 9,786,908 7,779.326 13.505,62') 1899 ... .7.769,555 7,837,265 13,606,820 1900 ... 6.689,783 7,801,601 11,491,181 1901 ... 6,929,370 8,i9c 15,125,72!

DxeeKfi of Deposits. ,£ Ad van nes. X Depot: Hs. X 1898 ... 13,565,629 10.408.208 3.157.421 1890 ... 13,606,820 10,813.196 2,763,321 1900 ... 11,191,181 11,161.490 3,326,68") 1901 ... 15,125,721 12,115,720 3,010.001

December MiU’fli Quarter. Quarter. £ £ 1837-8 ... 1,015,010 1.067.624, 1SS8-9 ... 1,074,143 1,121.729 1899-0 ... 1,195,502 1.281.125 1900-1 ... 1,317,706 1,319.225

X w.a 2,842,539 iaw 2,710.488 1900 2,070,879 VMl 2,885,970

Marrli, ,Un rcti. TnAilvai'PCM. 19(H). 1‘JOI. rrvase. X X j: IJank of 3.83m,ioh ■US 1.533 310.351 I'uiuh Hank... i ,535. ir,« 1.597,588 73,130 Hunk or. \.S. Wale:; 3,083.331 2,338,13 I 111.803 Hank of Australasia i .T.w.nan 1,993,93!) 333,009 National !»an!t 1,958,333 3.113,510 Miifcli, Mil rch in10(H) 1 SO I crease. X X .■a Hank of N. fi.au.s50 0,016.073 .131,117 Union Hank ... 3,300,315 3,319,053 *10,503 Haul; of N.S. Wain.; 3,1.30,738 3,503,039 00,931 Han); of Australasia 1,331,101 I.300,331 32.330 National Hatil: 3.141,551. 3,383,130 1 17,882 Decrease