THE BANK RETURNS.

New Zealand Times, Volume LXXI, Issue 4407, 13 July 1901, Page 4

THE BANK RETURNS.

The returns from the various banks for the quarter ended 30th June last are to hand, and by them we are enabled once more to “take stock” of the financial position. Generally speaking, they show that the hanking movements for the quarter are similar to those that usually take place in this period of the year; that is to say, they include an increase in deposits and a decrease in ad* vances, the reSult of a general replenish. ing c£~- the accounts of customers by means of the proceeds of produce brought to market or shipped to the United Kingdom for sale. On the present occasion the increase in deposits amounts

cc £306,960, and the decrease in advances to £77,858, a total improvement of £384,818. A year ago the same quar ter showed an improvement of £639,007. namely, increase in deposits £385,366. reduction of advances, £33,631. The difference between the two results, which is over £250,000, is probably due to the very low prices now ruling for our cine! staple, wool. In the March quarter the difference wag even more ominous, the improvement shown being only £187,000, against £BBO,OOO in the corresponding period of 1000, the aggregate differencci'or the six months being thus nearly £930,000. Turning to the details pf thg returns before us, we find that the lead" ing totals compare as follows with those of the preceding quarter :

We see here, as wo have said, an increase in deposits, which is, however, almost confined to the free deposits, as bankers are nob anxious for deposits in the present abundance of money, and the rates offered are not very tempting to those who have money seeking investment. Discounts show a continuance of the upward movement that has heap noticeable latterly, after a period of shrinkage extending over many years. Open advances have, however, decreased by an amount just about twice that qf the increase in discounts, leaving a net reduction of £77,858. Note circulation shows the increase usual in this quarter and the stocks of coin and bpllipn liavp again been enlarged. These are, on flip whole, Satisfactory movements, The aggregate assets and liabilities compare as follows for the past four years in the June quarter:

A year ago the liabilities exceeded the assets by over £500,000. Tp day the balance is nearly £500,000 on the other side. The difference is more than accounted for by increase of over £920,000 in general advances, and of ever £200,000 iji tho volume of colonial Government securities held by the seyoral banks. Against this there is an increase in the deposits of both the general public and the Government. Discounts and open advances have, in the same periods, shown the following changes i

Tho volume of advances, which shows moderate increase from year to year in the earhor periods, exhibits in the latest twelvemonth an expansion of £926,814. We are disposed to connect this increase very much with the expansion of the import tpade of the colony, which has been caused partly by enhanced cost, partly by increased spending power, part* ly by special activity in certain industries, and to some extent by over-importa-tion.

Turning to deposits, we obtain the following comparisons for the four years in question:

Here, unlike the figureg for the quarterly comparison, the increase is confined to the fixed deposits, free balances showing a flight reduction as compared with 1900, though the total is still considerably larger than the figures for 1898 and 1899. The fixed deposits haye beep slowly but steadily growing in. the twelvemonth from quarter to quarter, while the fre e deposits have fluctuated considerably, having dropped in the December quarter to £6,513,380. Contrasting total advances with total deposits wo arrive at the following comparison :

The excess of deposits over advances shows a contraction in the twelve months of about £570,000, which must, no doubt, be attributed to the very low prices ruling for wool. It is gtill the case, however, that the deposits of the people provide for'all the requirements of the community without calling for the rose of bank capital. Not only so, but the account shows a balance of over £3,000,000 left in the hands of the banks. It is to be regretted that so little disposition is manifested to embark this

stagnant capital in industrial enterprises. Note circulation shows an expansion on the previous quarter. Th 0 increase that takes place every twelve month from the September quarter, the lowest point, to the June quarter, the highest point, is very striking. The movements in the last four years have been as follows;

It is interesting to note that, in addition to the expansion that occurs within each twelve-month, there is also a progressive increase from year to year in the same quarter, pointing tp growth in trade and increased earnings for the labouring classes. The aggregate of coin and bullion compares as follows:

During the eighteen months ending on 31st March last the imports and exports of coin compare as follows: —

In spite, however, of importations by tbe banks not far short of £700,000 in a vear and a half, the coin in the hands of .the banks has only increased in two years by about £315,000. Looking at the figures for the several banks we find the

movements in advances and deposits bo compare as follows for the twelve-' month :

AU the hanks but one show an increase, greater or less, in advances, while the in? crease in deposits ha« been confined to the two institutions more especially connected with New Zealand. fn tlje case of the Dank of New Zealand the growth of deposits is rather larger than the in* crease ip advances. In the eases of twp of the Australasian banks there i» sub* stantial increase in advances, concurrently with slight contraction of deposits j and ip the case of fhe third of these institutions the slight shrinkage in advances is less than the reduction jn deposits. The National Bank baa increased its advances In excess of the accretion of These returns are on the whole satisfactory, but they do not disclose such a flourishing position as wa» indicated by the returns of a year ago.

March dune Quarter. Quarter. .£ £ Deposits, free 6,929,370 7.227,181 Deposits, fixed 8,196,851 8,305,500 Discounts 1.682,017 1,961,793 Open Advances ... 10,333,703 10,075,871 Note Circulation ... 1.319,225 1,416,437 Coin and Bullion... 2,883,370, 3.006,152

Assets. ■ jg Inabilities. J? 3898 . ... 16,878,316 15,410.540 1893 ... 17,017,693 10,031,908 1900 ... 17,103,430 17,305.384 1901 ... 18,386,973 17,894,385

Discounts. Advances. Total A £ A 1898 ... 1,716,286 8,737,750 10,454,036 1899 ... 1,080,863 9,129,569 10,809,432 1900 ... 1,695,853 9,414,995 11,110.8-8 1901 ... 1,961,791 10,075,871 12,037,662

1 Free. Fi?ed. Total. • $ £ £ 1838 ... 5,835,043 7,742,745 13,577,788 1839 ... 6,042,207 7,877,785 13,919,993 1900 ... 7,260,307 7,816,233 15,076,540 1301 ... '7,227,181 8,205,500 15,132,081

Excess of Deposits. Advances. Deposits. £ £ £ 1898 ... 13,577,788 10,454,036 3,123,752 1899 ... 13,919,993 10,809,432 3,110,561 1900 ... 15,076,540 11,110,848 3.965,602 1901 ... 15,432,681 12,037.662 3,395.019

Sept. Quarter. June Quarter. £ £ 1897 ... 977,490 1838 ... 1,091,985 1898 ... 1,046,778 1899 ... 1,186,715 1899 ... 1,151,029 1800 ... 1,331,449 1909 1,269,022 1001 ... 1,416,437

1898 2,793.724 1899 2,691.742 1900 ... 2.735,035 1901 3,006,152

Imports £ ... 724,309 Exports ... 30,406 693,903

Advances. June. 1900. June. 1901 J6 X Bajik of X.Z. 3,809,041 4,149,302 Union Bank 1,518,262 1.518,954 Hank of Jf.S.W. ... 2,033,289 2,235,029 a t of Australasia— 1,716,273 2,007,23p Katipnal Dsllk ... 1,873,983 Deposits June, 1900, June, 1901 X X Dank of X.Z, 6,521,227 6,815,706 Union Dank ' ... 2,410,065 3,356,004 Dank of N-S-W. ... 2,529.732 2,603,428 D’« of Ans(ralaB|a1,385,251 1,378,238 N’ational D»nk g,2}0,363 3.278,302