THE BANKING AVERAGES

Otago Daily Times, Issue 21538, 9 January 1932, Page 10

THE BANKING AVERAGES

FIGURES FOR DECEMBER QUARTER DFXREASED SPENDING POWER POSITION GENERALLY SOUND (Speciai. to Daily Times.) WELLINGTON, January 8. The Dominion's banking position, as shown by the averages for the December quarter, strikingly reveals the abnormal trade conditions that have prevailed during the year. The position of the banks is thoroughly sound, and they appear to have the situation well in hand. There has been a contraction in the advances of nearly £3,000,000. A further increase of fixed deposits, which stand at a record total of £34,635,000, is shown, and the free deposits have shrunk to just over £16,000,000. The main changes in the figures as compared with those of a year ago are as follow; —

Government deposits decreased by .. .. 663,562 Free deposits decreased by .. 2,452,401 Fixed deposits increased by .. 1,860,038 Advances decreased by .. .. 2,896,986 Discounts decreased by .. .. 468,981 Circulation decreased by .. 200,486 Coin and bullion increased by 520,073 As compared with the position a year ago, it is very noticeable that there has been a shrinkage of nearly £2,500,000 iu the current account balances, and a decline of over £200,000 in the note circulation, these two items representing the spending power. The three classes of deposits compare as under:—

All the banks shared in fairly even proportion in the decrease of the free deposits, as is shown by the following com-

The increase in the fixed deposits was shared by all the banks except two. The detailed figures compare as follows; —

* Decrease. The fixed deposits now exceed the free deposits by nearly £ 18,500,000. _ The total of the free and fixed deposits is less than for the December quarters of the three previous years, but substantially greater than in the years preceding 1928. The movements of the deposits during the last seven years are shown in the following table: —

Advances: show the substantial decrease of nearly £300,000, of which two purely New Zealand banks account for over £1,900,000. The position of the advances compares as follow: —

Totals .. .. 53,214,074 50,317.088 2,200,980 Discounts for tlie past quarter totalled only £699,000, which represents a very pronounced fall on those of a year ago. The movements of the discounts and advances during the last seven years are as follows: —

The total accommodation granted to customers by the banks exceeds the aggregate deposits by only £235,748, as compared with over £3,000,000 a year ago. The position for December quarters tor the last seven years compares as follows:—-

* Kxccss of deposits. The coin and bullion held by the banks more than covers the note circulation. The movements of these two items over a number of years is shown in the following table: —

Dec.. 1930. Dec.. 1931. ■ Deposits. £ £ Government 1,859,407 1,195,845 Free .. 18,597,839 16,145,438 Fixed 34,635,595 Totals . - .. 53,232,803 52,976,878

panson: — Dec., Dec., De1930. 1931. crease. Bank. £ £ £ New Zealand 8,563,038 7,649,782 913,256 National 3,130,118 2,756,278 373,840 Union 2,130,500 1,748,438 382,132 Australasia .. 1,850,845 1,500,941 349.904 New South Wales 2,014,582 1,691,946 322,636 Commercial .. 008,666 798,033 110,633

Dec., Dec., 1930. 1931. Increase. Bank. £ g S New Zealand 16,093,459 17,071,588 978,129 5,127,591 6,067,435 939,844 3,754,495 3,847,778 93,283 2,957,045 2,974,635 17,590 N.S. Wales 4,171,300 4,010,087 *161,213 Commercial 671,067 664,072 *7,593 Totals .. 32,775,557 34,635,595 1,860,038

Dec. Free Fixed quarter. Deposits. Deposits. Totals. £ £ £ 1925 .. 25,189,553 20,840,409 46,030,362 1926 .. 23,131,103 21,105,547 44,236,650 192" .. 21,438,335 24,262,722 45,701,057 1928 .. 22,179,748 29,481,658 51,661,406 1929 .. 22,728,494 30,628,239 53,356,733 1930 .. 18,597,839 32,775,557 51,373,396 1931 .. 16,145,438 34,635,595 50,781,033

Banks. Dec., 1030. Dec., 1031. Decrease. £ £ £ New Zealand 21,074,594 23.410,020 1,228,008 National .. ■ ■ 0,110,797 8,402.884 710,013 Union 0,304,553 0,021,180 283,373 Australasia .. • • 5,002.787 4,050,770 43.017 New South Woles 0.517,220 0,093,120 454.109 Commercial .. .. 1,504,714 1.424,108 170,707

Dec. Adrances. Discounts. Total. cm art or. £ £ £ 1925 .. .. 40,027,070 1,927,357 48,554,427 1026 .. .. 49,300,4,70 1.870,772 51,273.211 1027 .. .. 48.087,788 1,071,870 49,759,004 1028 .. .. 40.810,084 1,290,420 48.101.104 1029 .. 52,012,587 1,195,344 53.807,931 1030 .. .. 63,214.074 1,108.074 54,382,748 1031 .. .. 50,317.088 090,093 51.010,781

Dec. Deposits. Advances. Excess of Advances. quarter. £ £ £ 1925 .. .. 46,030,362 48,554,427 2,524,065 1926 .. .. 44,236,650 51,273,211 7,035,561 1927 .. .. 45,701,057 49,759,664 4,058,607 1928 .. .. 51,661,406 48,101,104 *3,500.302 1929 .. .. 53,356,733 53,807,931 451,198 1930 .. .. 51,373,396 54,382,748 3,009,352 1931 .. .. 50,781,033 51,016,781 235.784

Coin Circulation, and bullion. Year. £ £ 1925 .. 6,947,077 7,740,210 192G .. 6,575,707 7,809,984 1927 .. 0,570,061 7,866,375 1928 .. 0,521,106 7,262,331 1929 .. 6,544,522 6,614,964 1930 .. 6,133,388 6,352,564 1931 .. 5,926,902 6,872,637