THE BANK RETURNS.

New Zealand Times, Volume LXXIV, Issue 4869, 22 January 1903, Page 4

THE BANK RETURNS.

The returns of the hanks trailing in New Zealand for tin* last quarter of 1902 are to hand, and are as interesting as these reviews usually are. The totals under tii? principal headings compare as follows with those of the returns for the preceding quarter:—

Ordinarily the requirements of farmers and others during the wool and grain season lead to large withdrawals from tho banks during the third and fourth quarters of the year, withdrawals v. Inch aro recouped, and more than reoupod, through tho realisation of produce in tho first and second quarters of the following year. The transactions of tho September quarter of 1002 proved an exception to this rule, as we showed at the time in our comments upon thg returns .of tho third quarter. In that period, in lieu of withdrawals, we found an increase of £387,341 in deposits, with a decrease of £305,683 in the total of advances, or an aggregate improvement of £693,024 in tho relations of the community with tho banks. This, wo believe, is explained by the fact that the realisation of last season’s wool brought to farmers, as a rule, credit balances over tho very cautious advances which bankers and merchants had made agamst shipments. Tho figures for the fourth quarter, which we give above, mow a not reduction of deposits by £176,383, and a total increase of advances Ly £418,405, or an aggregate withdrawal of £594,788. This is in accordance with tho ordinary movements of the season, but tho result of the six months composing the third and fourth quarters really an improvement in the rwuoral account of nearly £IOO,OOO, a quite unusual result. The aggregate assets and liabilities compare as follows for the past four years in the December quarter:—

Each side shows an increase from year to year, but the growth is more marked in the liabilities than in the assets, the former having been increased in the three years by £3,305.200, and the latter by £1,796.463, a difference of ever £1.500,000. In the latest year the assets show an increase of £340,405, while the liabilities are augmented by £1,734,888.

Tho total of advances shows an increase on tho asset side of £551,200, while coin is also increased by over £200,000. Tho effect of this is, however# diminished by a decrease of £IBB,OOO in Government and other funded securities, and of £2GG,OOO in tho figures under the heading of “ Securities not included under other heads.” On tho liabilities side, the chief item is an increase of £1,350,000 in tho total deposits of the community, and of £35-1,000 in the deposits of tho Government. Discounts and open advances compare as follows:

Tho total shows a pretty steady expansion from year to year in harmony with tho extension of settlement and tho growing volume of the trade of the colony'. Tho enhancement is, however, exceeded by tho increase shown in deposits. These compare in the last four years ns follows:

Hero there is increase in both branches from year to year, the total of free advances having augmented in tho three years by £1,770,002, and that of fixed deposits by £308,878. A largo proportion of tho growth took place in the latest year. Contrasting total advances with total deposits, we have the following comparisons:—

Deposits show a total increase in the twelvemonth of £1,350,717, while the growth of advances is £550,201, so that the excess of deposits ever advances is augmented in the year by no less than £790,510. The figures for 1901 showed in this respect a little retrogression, owing to the low price of wool, but the present returns show that not only is the check then experienced quite overcome, but that a good stride forward lias boon attained, and wo can confidently look forward to a still more striking advance in 1903. Note circulation compares as follows, the figures given being tboso for the September and December quarters:—

Tho September quarter is the low-water mark of tho year, and an expansion is always shown in subsequent quarters. Tho above figures show enlargement from year to year, while tho expansion in tho December quarter is greater than usual. This speaks of activity and prosperity.

Tho aggregate holdings of coin and bullion compare as follows:

The banks have succeeded, by heavy importations of specie, not only to maintain but to increase their coin reserves from year to year. Looking at the figures- for fho several banks, we find tho movements in tho twelvemonth in advances and deposits to compare as follows—.

Advances show increase with four banks out of the five, the largest expansion being found in the figures of the Bank of Australasia. Deposits exhibit growth in every case, the heaviest share of the increase falling to the Bank of Now Zealand. This institution shows deposits in excess of advances by £3,152,025, out of the aggregate excess shown above of £3,‘±54,139. Of the Australasian banks, the Bank of New South Wales shows advances and deposits practically equal, the Union Bank shows an excess of deposits of £882,508, and the Bank of Australasia an excess of £933,126 on the side of advances, while the National Bank exhibits an excess of deposits of £404,288. Taken together, the three Australasian banks show an excess of about £IOO,OOO of advances over deposits.

Thcso returns reveal a very healthy state of affairs and funds accumulating to the credit of the community. Apart from the necessities of the Government thcro is every indication of a continuance of easy conditions, and wo have every.confidence that tho Colonial Treasurer will cany out his arrangements to acquire tho needed supplies in such a way as not to disturb tlie local market.

September December Quarter. Quarter. Deposits, free 7,912,054 7,676,082 Deposits, fixed 8,(161,873 8,722,367 Discounts 1,747,083 1,829,059 Open Advances 10,773,512 11,114,951 Note Circulation ... 1,347,587 1,399,014 Coin and Bullion 3,234,050 3,292,090

Assets. Liabilities. jg £ 1899 ... 17,365,715 15,713,333 1900 ... 17,752.328 16,828.525 1901 ... 18,821,773 17,283,615 1902 ... 19,162,178 19,018,533

Discounts Advances Total. £ ,C .e 18SD ... 1.737,893 9,513.250 11.263,179 1900 ... 1.819,608 10,036,183 11,836.091 1901 ... 3,880,132 10,509,077 12,389,813 1902 ... 1,829.039 33,314,931 12,914,030

Free. Fixed. Total. Ji X .2 1E99 ... 5,905,990 7,853,483 13,750,176 1900 ... 6,513,380 8,14.5,437 H:,G58,817 1901 ... 6,753,737 8,203.935 15,017,732 1502 ... 7,G76,082 ■ 8,722,367 16,398,449

Excess of Deposits. Advances. Deposits. £ £ £ 1893 ... 13,759,470 11,363,173 2,'436,300 1900 ... 14,0,13,817 11,836,031 2,832,736 1901 ;.. 15,047,733 13,383,803 3,037.933 1902 ... 16,398,449 12,914,013 3,454.433

September December Quarter. & Quarter. _C 1839 ... 1,151,029 1.183,502 1900 ... 1,269,022 1,317,708 1801 ... 1,325,559 1,354,206 1902 ... 1,347,567 1,309,044

18S9 Ji ... 2,636,177 * 1900 ... ... 2,852,232 3901 ... ... 3,083,S'iS 1952 ”* ... 3,292,090

Advances Dec.. 1001. Dee.. 1902. .£ £, Bank N.Z. '... 4,185,032 4,385,785 Union Bank 1,505,012 1,484,510 Bank N.S.W.2,424,2,2 4 2,557,104 Bank Australasia... 2,100,400 2,409,324 National Bank 2,048,428 2,107,287

Deposits. Dec., 1301 Dec., 1002. .e Bank N.Z. 6,707,13.'! 7,538,110 Union Bank 2,109,366 2,367,018 Bank N.S.W. 2.412.915 2,555,218 Bank Australasia... 1,333,Ml 1,126,198 National Bank 2,304,745 2,511.575