BANKING RETURNS

Otago Daily Times, Issue 16663, 7 April 1916, Page 93

BANKING RETURNS

FIGURES FOR MARCH QUARTER. ' POSITION SATISFACTORY. 1 J!. NEED FOR ECONOMY. i (Fbom Ocb Special Cobbespondent.) iX WELLINGTON, April 6. ' \ The banking returns for the first quarter :J of 1916 fully reflect the effect of the war ' on New Zealand, We. have obtained extras j? ordinarily high prices for the produce wo have been able to export, while the imports >f ** have been restricted partly by the inability ■■/)%£ of manufacturers to supply the rcquirea > goods, partly by tho shortage of tonnago , tor tho transport of goods, and partly by ' < tho high prices ruling causing a check to } consumption, with the result that money "' is accumulating here rather rapidly. The ' banking figures show this very clearly, and // tho salient features may be "stated as fol- * ? lows:—Government deposits increased by ', £1,599,224; free deposits increased by ; ''' £3,133,217j fixed deposits increased by ' J £1,311,597; all deposits increased by ' £6,044,038; advances increased by £140,093f discounts increased by £146,763; advances 1 >,■* and discounts together decreased by £6670; circulation increased by £511,968; and coin "f and bullion increased by £700,305. The - comparison is with . the corresponding 1 ' ''< quarter of 1915, and is entirely satisfactory , ,yj under present conditions. Had the position V j; been normal an accumulation of credit of 'Vthis character would indicate a want of con- > fidence, but under war conditions tho ' accumulation is satisfactory, because when *5 tho war is over wo will be able to find full .>}, and profitable investment for the money. " Turning to the deposits the aggregates com- *j,'' pa:e as under:— < -Jk ' Mar, 1915. Mar, 1916. Increase. % Government , ** deposits ... £ 3,250,715 £ 4,865,939 £1,599,324 *1 - Free deposits 15,958,732 19,031,949 .* Fixed deposits 10,'870,507 12,182,101 1,311,697 ~ Totals ... £30,085,354 £36,129,993 £6,044,038 ~»v The very substantial increase in the Government deposits is probably due to thp , revenue receipts- being larger than antici- rf. pafced, and if that is so the Finance Minister will be able to show a satisfactory sur- ' "§,l Clus. The free deposits or current account) alances again show expansion, and the in- '-f. creases are shared in by ail the banks, aa ti*± the ta,ble appended shows:---Mar, 1915." Mar, 1916 Increase. -' > $ New Zealand... £ 7,415,521 £ 9,160,f194 £1,746,473 •> *4 Union ... ... 2,433,986 2,731,028 297,042 >"J N.S. Wales,. ... 1,992,13k 2,403,786 411,650 <"« Australasia ...» 1,666,716! 1,930,893 264,177 National ... 2,305,334 . 2,697,966 342^3? Commercial ... 95,039 167,282 72,243 Totals .I. £15,958,732 £19,091,949 £3,133,217 The fixed deposits exhibit a much larger increase than was the case a year ago, and an excellent' view is .obtained by taking \ the deposits for a series of years as under: — March 1 'Free Fixed quarter. deposits. deposits. Totals. » 1912 ...£13,644,146 £10,372,756 £24,016,903 ; $ 1913 13,460,530 10,426,126 23,887,256 1 i'£f 1914 13,475,771 10,654,479 24,030,250 -* Sg 1915 ... ... 15,958,732 10,870,507 26,829,238 '^5 1916 19,091,949 12,182,104 31,274,063 tho'banking deposits there aro ; » the deposits in the Post Office Savings Bank and with the building societies, but all such, 'r deposits would be included in the book' figures. The: advances, as already stated, < show the moderate increase of £140,093, the movements as they affect the several. . banks are disclosed in the table following:— Mar, 1915. MaT, 1916. ,*.'"''s New Zealand ... £9,243,084 £9,009,293 t £233,791 ' Union . ... 3,843,409 4,244,825 * 401;41« * ■*?, N.S. Wales ... 2,983,408 2,760,810 t 2225598 • "5.4 Australasia 1 2,770,994 : 2,834,756 * 63,761 bJR National' ' 3,198,607 , 3,274,617 * 78,010," Commercial ~ 68,642 121,937 * 63,23$ - Totals „'. £22,161,144 £22^46,237 * 140,091 t Decrease., * Inciease. . , ' But this increase 6f £140,093 is more than set off by the contraction of £146,763 in the ** discounts, so that the accommodation ob- ■> tained from the brinks is less by £6670 aa compared with a year ago. Taking tho , advances and discounts for a series of we obtain the following:— ' *S

March , .5 quarter. . Discounts. Advances. Totals.. » ,»& 1912 £1,845,497 £21,284,053 £23,130,560 .. •' 1913 ... •... 1,967,351 21,025,105 22,992,456 - / 1914 ... ... 2,017,107 21,649,643 23,666,750 , " .1915 ... ... 1,634,418 22,106,144 23,740,668 1916 ... . ... 1,487,655 ' 22,246,23/ \ The aggregate of the advances and discounts, tnough less than last year, is greater » than in 1914- and the two preceding years. s Taking r the aggregates.of the fixed iind freo 1 deposits and the aggregates of the. advances , ' and discounts the ,excess of the one over tho 'crther for a series of. years' is exhibited * in the table appended:— > March i' Excess 1 qnarter. - Deposits. Advanc- 10 . of dep. f !' 1912 " ... ...£24,016,902 £2:1,129,550 £ -887,362 1 1913 ■ ... ... 23,887,236 22,992,456 894,800 1914 ... ... 24,030,250 23,666,750 '363,600 ~ 1915 ... ... 26,829,239 '23,740,5 K 3,088,677 1916 ... i... .31,274,053 23,733,892 7,540,161 y, As .<Jompared with a year ago the notp circulation , increased by £531;903, and tho banks have more than provided for this, ' as the coin!and'bullion have Ix-on increased by £700,305. The figures for a teriee of 4 five years compare as under: — , / "rvJji March . , qnarter. 1 Circulation. Cbm and bullion. '' 1912 ... ... ...£1,708,839 £5,323,014 1913 ... ... ... 1 1.703,318 5,032.155 •1914 ... ... ... 1,666,939 5,317 861 ' 1 1915 ... ... „ 2,639,585 6,420,559 . 1916 ... 3,171,563 7,120,164 The banks, are . flooded with the idle ■< money of the community, but they cannot afford to hold the money idle. Smco there is no scope, for employing the money here, i* they are usinc 't elsewJrere— probably in Londton,—where it : s of most service to tho '■* Empire. This feature is exhibited by the ' assets and liabilities or five years:— f March '• quarter. Assets. liabdliUis. ' • 1912 £31,427,451 £28,135,688 • ' 1913 ... ... „. 30,856,091 27,820.730 1914 31,626,774 28,567,207 1915 ... ... 32,738,712 , 32,898,488 i 1916 34,123,759 10,11),071 ; The banks—car some of them—are using their funds elsewhere; otherwise thn assets would approximate to the liabilities. Taking the figures all round, they are Tery ■ satisfactory, but at the same time they 1 ' are apt to give a false impression. ,We / cannot afford to bo extravagant, for all the money that is saved will be needed /■ after the war, and wo have /not saved ' '-s enough as yet. [ — ! *■' "

BANK OF NEW ZEALAND. . /A The following is a statement of tho aver- . ago,: amount of liabilities .and assets'of the ' | Bank of New Zealand in' New Zealand dufJ- f. i.'j in? the quarter ended March 31:— ■>'*!» Liabilities.—Notes in circulation, £1,723,672. 9s 2d; bills in circulation, £45,802 3s 9c; balances d!ue to other banks, £21,450 Is Id; ' : Government deposits, £4,855,885 10s; 5d other deposits not bearing interest, £9,160.993 17s 6d; bther deposits bearing", interest, £6,120,355 7s 6d. Total average ,' '. lkbilities, £21,933,160 9s ad. , ' Assets.—Coined gold and silver and other coined metal, _ £3,302,922 18s 4d; gold and silver in bullion or bars, £78,675 16s 8d; , - notes and bills of other banks, £150,779 18a; ' \ 8d; balances duo from other banks, £49,699 , ' f 3s 9d; landed property, £171,803 15s Id;' amount of all other securities—Notes and bills discounted £880,577 16s 3d, Colonial Government securities £914,580, other >v' funded securities nil, debts due to tbe bank, (exclusive of debts abandoned as bad) ' 1 £9,009,293 0s sd, securities not included •-'/ under the above heads £655,081 15s 7<L >" /"* Total average assets, £15,213,408 4s 9d. Mr C. R. Murray, of Lincoln, a. well- ■' ■ ' known footballer, wild has made several attempts to join the Now Zealand Expedi- *'» tionary Force, but waa unable to pa«« tho •- • medical test, left on Tuesday night (says tho Christchurch Press) for England to offer his services to the authorities there. The ©Sect of tho war upon tho cost of I v mining requisites waa referred to ai tho /, meeting of shareholders in the Waihi-Paeroa Gold Extraction Company at Auckland by the manager (Mr R. M. Aitken). He said it had been hopedl to reduce tho oost of ">i handling the Bands to 3s 9d per ton, but <'i so far it had only been oat down to 4s. That was duo to the -higher oost of re- " quisites since the outbreak of war. He referred to zinc as an instance. Before tho war it was about £24 per ton, but now ?£■ tho price Was £117. Thero had been soico \ compensation in tfao fact that silver, which . £ had sunk to Is (per ounces toad ' advanced to 2s 4d per ounce. ■ Jifdgment was given by the Court of Appeal at Wollington on Monday (sa.ys the New Zealand Times) in the caao in "/J which■ application was made on behalf of; -uS Messrs Loughn&n and Jacobs, of Palmerstoa • : North, for leave to emjpioy Olivet Noal '' I GiUespio, late of Reading, in their bud- .vl ness. Gillespie was aentenood in. 1914 to "MB two years' imprisonment for misappronriation of trust funds, and, was struck off tho J solicitors' roll. He had since boon cm- ", ~<l ployed by tho official assignee, .ujd Messrs Lcrughnan and Jacobs desired to cngagQ Ml him afr clerk and ooaveyancer. Tho ' -^>1 tioa tl'winiind. *: