BANKING RETURNS

Otago Daily Times, Issue 16052, 20 April 1914, Page 1 (Supplement)

BANKING RETURNS

SATISFACTORY POSITION.

WELLINGTON, April 11. rThe banking averages for the first quarter of the year disclose the fact that there has been an increased demand on the banks as compared with a year ago, but this pressure ' has been met by the expansion in deposits; Thus advances increased by_ £624,538 and discounts by £49,756, making a total increase of £674.294. Free deposits increased by £15,241, fixed deposits by £127,753,' Government deposits by £650,343;— making a total increase of £793,337. It will be.seen that, while the advances and discounts to 1 gether increased by £674,294 as compared with a year ago, all classes of deposits increased by £793,337. Throughout the quarter, there have been complaints of dull< ness of trade, and this ; would appear to be emphasised by the shrinkage of £36,379 in tho note circulation, but the _ evidence is' not conclusive. As actual coin is now much more largely used and large employers of labour pay wages mostly in coin, the da: ' mand for coin must be, pronounced since the banks have increased their reserves by £285,706. Dealing first with the deposits there is, as already,stated, an increase of, £793,337 in all classes, the figures being as under: — • ' March, 1913. March, 1914. Increase. Government deposits £2,020,926 £2,671,269 £680,343 Free deposits ... 13,460,530 13,476,771 16,241 Fixed deposits 10,426,726 10,654,479 127,763 Totals ... £26,908,182 £26,701,519 £793,337 The increase in the Government deposits can scarcely be influenced by the loan issued in February, and, as at least £3,000,000 of that issue is intended for publio works and for the services of the lending departments of the State, there will be plenty of idle credits at the disposal of the banks, especially tho Bank of New Zealand, during' the current quarter, and consequently wo may look for a reduction of the overdraft rates auci necessarily of the deposit rates allowed by the Post Office Savings Bank and building societies. \ .... Comparing the totals of 1910 and 1914, it will be seen that in four years there has been an increase of £5,673,305, and if any inference is to be derived from this it is that it requires a great deal more money now than it did even four years ago to. finance the trade and commerce of the country, and the tendency will be for the monetary demands to increase. It is the sign of progress and of growth. Comparing tho aggregates of the ■■ advances and discounts we get this interesting table:—' ' . Advanoes -March *na; Excess if Quarter. Deposits. discounts, deposits. ' 1910 . ... £23,165,762 £17,993,446 £4,163,317 1911 . ... ' 23,470,046 19,710,390 3,759.666igi2 24,016,902 23,129;550 887,352 IDI3 . ... 23,887,266 22,992,456 894,800 1914 24,030,250 23,666,750 363,500 The margin between the two is ' very small, but as the Government deposits are so much larger no importance need be attached to the shrinkage in the margin. The volume of the circulation and the total holding of coin at the March quarter of each of the past five years are shown in th© tabic appended:— Coin and Year Circulation, bullion. m 0 " .. £1,618,121 £5,077,683 1911 1,661,463 5,030,761 ,912 . 1,708,889 5,333,014 ,91s 1,703,318 5,032,158 IDI4 1,666,939 5,317,861 The aggregate assets an* l , liabilities for the March quarter show changed over a period of five years. vhereas in 1910 and 1911 the liabilities exceeded the assets, in the following years the position has been reversed. The movmohts are given in tho table below:— . n Year Assets. :'iabilities. m 0 £25,945,24!. £i 6,255,568 ' 10U '" 27,809,188 28,478,850 injo '" _ ... 31,427,461 28,196,668 13 13 . 30,356,091 27,820, 1 730 19U 31,526,774 28,567,203 Taking tho figures on tho whole the posi- : tion is not unsatisfactory. Thero are indications that imports are still on a large' scale, and perhaps luxuries figure to a great extent. The growing commerce of the country, coupled with the high prices for commodities, makes greater demands on crodit, and more money will have to be provided. It is impossible for any one tp bo pessimistic over expanding commerce. "