BANKING STATISTICS

Otago Daily Times, Issue 18758, 11 January 1923, Page 5

BANKING STATISTICS

QUARTERLY RETURNS. A MARKED IMPROVEMENT, PROSPEROUS YEAR ANTICIPATED. (From Our Own Correspondent.) WELLINGTON, January 10. ” Tile banking returns for the closing quarter of 1922 show a satisfactory movement when compared with the December quarter of 1921. There is a substantial decrease in the volitme of the advances, ami although the free deposits have contracted the Goverment deposits and fixed deposits have increased, the latter showing a substantial gain. The salient features of the pist quarter’s figures compared with those for (he corresponding quarter of 1921 are given in (he appended summary: — .... Government deposits increased £927,383 Free deposits increased 837,485 Fixed deposits increased 1,006,365 Advances decreased 3,095>243 Discounts decreased 129,461 Circulation decreased .. 694,477

Metal reserve increased a ... 300,161 Taking the three classes of deposits the aggregates compare as under: — Deposits, Dec., 1021 Dec., 1922. Increase. Government ... £2,307,031 >C3,:i23,0U £927,383 Free 24,350,432 23,542,867 *837,595 Fixed 10,555,187 17,501,552 1,006,365 £43,333,250 £44,120,433 £1,096,183 ♦ Decrease. The Government deposits, though substantially greater than in 1921, are very much smaller than in any of the five preceding years. In 1917 the deposits amounted to £9,905,324, due to war loans. The free deposits have contracted to the extent of £937,565 as compared with December, 1921, and they also show a shrinkage when contrasted with the figures for the September ■ quarter of 1922. The free deposits hove a tendency to contract in the closing quarter of the’yeai and gain in volume in the March and June quarters. The free deposits held by tho several banks compare as under:— Banks'. D0c.,,1921. Dec., 1922. Decrease.

New Zealand ... fi11,635,8!)3 .£11,102,315 £633,578 Union 2,797,055 2,764,258 32,797 N.S. Wales ... 2,(84,589 2,637,885 146,704 Australasia ... 2,479,869 2,291,970 187,89!) National ... 4,146,855 4,199,150 *52,293 OomQiercial ... 636,171 647,280 *ll,llß ' £24,380,432 £23,542,867 £837,565 • Increase. ■’ The National Bank and the Commercial Bank show slight increases, but all tip ■ other institutions exhibit decreases. The fixed deposits are greater by ■ £1.006,183, as compared with December, 1921, and this was secured by the Bank of New Zealand and the Union Bank, the figures of the several banks showing as , under:— Banks. Dec., 1921. Dec., 1922. Increase. New Zealand £8,240,301 £9,251,747 £1,011,448 Union 1,860,320 2,126,199 265,870 N.P. Wales ... 2,418,738 2,378,115 *40.623 Australasia ... 1,177,858 1,161,509 . • 16,349 National ... 2,958,015 2,410,175 *647.840 Commercial ... 259,955 233,807 *26,148. £16,565,187 £H,561,852 £1,008,183 •Decrease. The increase probably represents the proceeds of loons recently floated by local bodies and placed at fixed deposits pending' expenditure on public utilities. The free and fiSed for the December quarter of each of the past seven years show as under': Dec. Free Fixed quarter. deposits. deposits. Totals. ’ 1916 ...£18,031.742 £13,229,076 £31,260,818 11117 ... 18,496,716 13,777,801 32,274,517 1918 ... 20,536,868 14,466.976 35,003,844 1919 ... 30,136,062 15,433,913 45,569,978 . 1920 ... 32,929,759 16,517,134 49,466,893 1921 ... 24,380,432 16,355,187 40,935,619 * 1922 ... 23,543.867 17,561,552 41,104,419 Dealing- now with the advances the figures disclose a shrinkage of £3,998,249 when contrasted with the figures for December, 1921, and as the result of the improved economic conditions traders and others have not 1 now the same necessity for seeking' bank accommodation as was the case in 1920 and 1921, and the higher prices ruling for primary products has enabled many farmers and others to repay debts due to the banks. ' The average advances of each bank for the December quarter of 1922 and -921 compare as under; — . 'V Bank Dec., 1921. Dec., 1922. Decrease. New Zealand ... £20,679,957 £18,251,824 ,£2,428,123 Union '... 3,919,070 5,609,560 49,410 N.B. Wales ... 5,014,385 4,588,470 425,918 Australasia 5,797,166 5,506,434 290,683 ’ National 7,640,438 7,148,485 491,953 Commercial ... 717,91!. 765,755 *17,844 £45,768,927 £41,770,678 £3,998,249 * Increase. The discounts also show a contraction, indicating that fewer promissory notes are being given now, and that those holding such bills have no need to discount them, to the same extent as previously. The discount business done by the several banks is shown in the table appended:— ■ Bank. Dec., 1921. Deo., 1922. Decrease. New Zealand £978,492 £1,029.275 *£47.7811 Union ' 116,093 89.244 26,849 N.fk Wales 210,262 170,500 39;782 Australasia 171,643 140,344 31,-299 National 266,452 195,396 71,058 •Commercial 46,857 35,579 11,278 £1,789,799 £1,660,338 £129,481 • Increase. The Bank of New Zealand alone shows, an increase, and tjiat a very small one. / . The aggregates of the free and fixed deposits and the totals of the advances, and discounts for each of the past nine quarters show as under: — Quarter. Deposits. Advances. December, 1920 £49,456,893 £47,118,295 March, 1921 47,153,730 , 52,446,341 June, 1921 43,511,095 '54,385,485 September, 1921 43,445,663 48,039,609 December, 1921 40,935,521 4.,553,725 March 1922 40,360,389 46,491,314 June, * 1922 ... ’ 41,388,886 46,155,934 September, 1922 41,961.866 42,994,448 December, 1922 41,104,419 43,431,018 ■ It will be noted that the deposits reached their lower point i» the" March quarter of last year, but in the succeeding quarters there was an - expansion, with a set-back last quarter. The advances touched the high point in the Juno quarter of 1921, but since then each quarter has shown a drop except in the past quarter, when there was a small increase. In December, 1920, the deposits exceeded the advances, but, since then the advances have been in excess of the deposits. The note circulation shows a shrinkage £695,4-77 as compared with December, 1921, testifying to the satisfactory progress of tha deflation Wljile the circulation has contracted the coin and bullion have increased by £2C0.161. ami the aggregates under tiioso two beads for the December quarter of each of the past seven years show as under:—; Dec. qr. Circulation. Coin and Bullion. inie £4 778,267 £7,688,098 1(117 6,464,695 9,993,391 1918 6,761,705 9,434,670 1919 7,254,412 7,862,415 1920 8,252,339 7,657,093 1921 7,458,385 7,683,949 1922 ’ 6,763,908 7,884,H0 Since 1920 the note circulation lias contraoted to the extent of £1,438,431, which shows how greatly the position has improved, Ucmmodity prices are lower and the people require lets cash in their pockets to meet their daily needs. Although the number at notes in circulation is still very large, , it will be seen that the banks hold sufficient in coin and bullion to redeem every note on, issue and then have £1,120,202 to soare. This huge leserve of metal earns nothing, but it has to bo maintained. Viewed as a whole, the returns are exceedingly satisfactory. The country is well on the way to prosperity, which cannot be marred, but can be delayed, by the political complications iu Europe. With our wool, butter, cheese, mutton, and lamb selling at the present high prices we can look forward with confidence to enjoying prosperous times.