BANK RETURNS

Otago Daily Times, Issue 14579, 19 July 1909, Page 2 (Supplement)

BANK RETURNS

FIGURES FOR THE JUNE QUARTER. AN IMPROVED POSITION. WELLINGTON, July 15. The bank returns as a wliolo disclose a far better position so tar as the banks aro concerned than was the cafe a, year ago. At the corresponding date last year there were shrinkage? in the fixed," free, and Government deposits. The advances exhibited the abnormal increase of over £3,000,000, the discounts were greater by £287,679, and the aggregate of the fixed and free deposits exceeded' the total of the_ advances and discounts combined by £156,469. The position disclosed by the returns under review is far different, and emphasises tho lact that bankers have taken tho right course to safegu.ii. themselves and the Dominion. Tho following table is interesting:—Liabilities, June, 1908— June, Juno, 1038. 19(B. Decrease. Note circulation i'I,G6G,GIG £1,G23,G?0 £42,940 Bills .. .. 91,809 85,004 G,7(0 Govt, deposits 1,503,741 1,142,038 301,703 Frco deposits 11,532,25G 10,892,070 G39.G16 Fixed deposits 9,723,662 10,039,059 '316,427 Assets (coin & bullion) 4,917,718 4,950,114 *38,39G Discounts 2,274,811 1,967,253 307,598 Advances .. 19,136,576 17,075,129 2,061,447 Govt, securities 1,254,927 1,250,304 4,023 Other securities 1,006,535 941,227 125,308 * Increase. The liabilities aggregate £23,836,002, as against £24,600,034, and the assets amounted to £26,942,215. as compared with £29,480,724. The assets exceeded tho liabilities by £3,106,213, while at tho corresponding date last vear the excess was £4,880,690. The liabilities and assets of each bank are shown below :— Bank. ' Liabilities. Assets. Bank of New Zealand . .(:'" "-1.270£11,457,206 Union 2,999,620 4,133,710 New South Wales .. 3.242,346 4,042.201 Australasia- 1,836,318 3,400,228 National .. 3,556,442 3,928,870 Totals £23,836,(102 £20,942,215 It will lie observed that the assets of the liank of Now Zealand la.ll short, of the liabilities by £704.064, and there aro no doubt adequate and special reasons to account for this. Notwithstanding that the fixed deposits show an' increase of £316,427, the deposits in the aggregate show a. shrinkage of £684,892,, as is disclosed in the table appended :'— June, June, 1908. 1909. Govt, deposits . £1,503,741 £1,142,038 Free deposits .. .. 11,532,280 10,829,670 l''ixed deposits .. 9,722,062 10,039,089 Totals £-22,758,G59 £22,073,797 The Government deposits, it will bo noted, are less than they were a year ago by £361,703. Dealing first with the fixed deposit, there is a gain of £316,427, in -which tdl the hanks, with the exception of the Union Bank, shared. The following table shows the movements as they affect each institution :— 'Bunk. June, 190 S. Juno, 1909. Increase. Bank ot N.Z.. £1.655.540 £4,907,30;) £251,709 Union .. 1,331.636 1,303,271 *22,415 N.S. Wales ..> 1,G38,716 1,678,731 20,015 A'uslraWa.. 605,967 626.C07 20,010 National .. 1,470.753 1,517,171 46,418 Totals . £9,722,G62 £10,039,039 £310,427 * Decrease. It- _ .is not easy to account for this expansion, but- it is certain that some of it represents tho proceeds of loans recently raised by local bodies in London. Tim chairman of tho Hank of New Zealand, at the annual meeting, gave a list of these loans, and tho total was £1,410,600. A good deal ot the money was for redemption purposes, but stilf a ku-ger amount was [or new works. The fixed deposits at the close of the June quarter for seven yeais compare as under: — June 30, 1903 £8,803,064 June 30, 1904 .. . . .. 8,869,98-1 June 30, 1903 9,423,193 June 30, 1906 9,857,273 ' June 30, 1907 . . 9,629,020 Juno 39. 1908 .. ... . 9 72-'>6o2 June 30, 1903 10,033J080 The past quarter shows the highest aggregate, and this perhaps is a matter for satisfaction. The free deposits, or current account balances, show a decreaseof £639,616, and this is not surprising in view of the over-importation of last year and the dulnws ot trade. All tho banks suffered under this head, as is shown below-— Bank. June, 1003. June, 1909. Decrease Bank of N.Z... £5,294,393 £5,102,519 £191,81-1 Union .. .. 1,579,821 1.536,184 43,610 N.S. Wales 1.546,754 1,375,502 171,192 Australasia ~ 1,258,447 1,122,737 135,710 National .. 1,832,868 1,755,638 37^230 Totals ..£11,532,286 £10,891,670 £639,616 111 1907 the free doposits reached tho high-water mat-k of £12,213,959, so that in tvo_ years there has been a reduction of £1,321,269. Taking a period of seven years, the free deposits for the June quarter compare as under:— 1903 . £8,937,545 1906 .. £10,732,708 1904 9,581,663 1907 12,213.933 1905 . 9,469,665 1908 .. 11,532,286 1903 ..£10,692,670 Now we come to the advances, and the figures show a decrease of £2,061,447. A year ago the banks advanced to tho full limits of their local resources, and it was imperative that Uiey should recall some of this money. Increased exports, restricted imports, and bargain sales have enabled traders ami others to repay the banks, and now ws may safely say that tho trading community is in a'good position. Trade may be slow and dull, but tho trouble of overstock appears to have been overcome. The position of each bank with respect to advances is shown below:— Ba-n'k. June, 1908. Juno, 1909. Decrease Bank of N.Z.. £7,500.227 £0,653,181 £817,046 Union .. .. 3,2-10,192 3,013,232 226,910 N.S. Wales .. 2,908,181 2.458,946 449,235 Australasia- .. 2.905,258 2,522,447' 352.8U National .. 2,582,718 2,427,273 155,445 Totals ..£19,136,576 £17,076,123 £2,001,447 Tho discounts decrease by £307,588. Tho Union Bank, however, shows an increase of £1744, while the other institutions, except- the National Hank, exhibit substantial decreases. Taking the figures for seven years, the advances and discounts compare as under:— June 30. Advances. Discounts. 1903.. £11.366.111 £1,844,241 1994.. • 12381,851 2.050,145 1905 .. 13,218,030 2.103,841 1900.. . 14,103,505 . 2,031,032 1W 16,033.352 1,987,16-1 !908 19,13G.57G 2,274,811 1909. 17,075,129 1,907,253 Last year, owing to the unusually heavy increase in tho advances the free aiid fixed deposits combined were less than the aggregate of the advances and discounts, but this year the position is the deposits being in excess by £1,889,377. This amount, however, is nearly £2,000,000 lea than the excess of 1907. The following table is interesting -.—, T ' Excess of June3o, Dc]x>sits. Advances,etc. Deposits 1903 .. £17,746,603 £13,210,352' £4.53G.256 1904 .. 18,451,647 14,440,990 iOIOGSI 1905 .. 18,892,858 15,326,271 3,566 587 1906 .. 20,599,981 10,140,197 4 459 784 1907 . 21,842,965 18,020,514 3,822,451 ™ " f^ m 21,411,417 '156,469 1909 . 20,931,759 19,0i2,552 1,883,377 * Excess of advances. Tho note circulation shows a decline for the second year in succession, and with | the prevailing dulness in trade nothing ; else could have been expected-. Tho : shrinkage, however, is comparatively small. ; Coin and bullion show a verv satisfactory ; increase, and are at the- highest point yet j touched in a mid year. The figures under , these two heads compare as under: | June 30. Circulation. Coin & bullion 1903 .. £1,501,247 £3,588,245 13M 1.519,785 3.867,826 190j .. .. . 1.521,559 4,000,598 }™t 1.615,416 4,660,850 "97 1,091.323 4,755 807 1308 .. .. . 1.600,016 4,917.718 WJ ■• . . 1.623.G70 -i,9SG;iU Re-viewing the figures as a who!" the economic position of the colony appears to be a great deal better than" it- was a year ago. The banks have pursued a con- | servatiive and prudent- wlicv, which, if j maintained, will help tho country along : very materially. The restriction of acU vances on real estate has been an important factor. The outlook calls for continued euro and economy, but- tho trading community is well aware of this. On June 3 the Waihi Grand Junction Company reported that 36 fctumps running for 24 days had crusted 4650 tons, valued at £6503,