BANKING RETURNS.

Otago Witness, Issue 2173, 17 October 1895, Page 16

BANKING RETURNS.

MEf-BOuatris, Ootober 9. The annual report of- the liquidator of the Federal Bank of Australia shows liabilities to creditors of a million and a-qaarter. TUo cash assets amount to LI 14,700. The book value of the assets is L 1,422.000., 422.000. Tlie liquidator adds that the book value must not be accepted as any indication of realisable value. Melbourne, October 12. Tha quarterly banking returns show that advances as compared with the last quarter havo Inoreased L 133,000. The coin and bullion held has increased L 85.000, and now stauds at a total of L 7.778.000. Current j accounts have increased by L 1,380.000,, 380.000, and fixed deposits have deorca«ecl by L 2,846,000., 846,000. The proportion of current accounts to total deposits has increased 6 per coot. The note circulation has decreased L32.0C0, and Ia now the lowest for 40 year?. The Argus Bays tho chief featura is tho proof that the fixed deposit system for several reason*, Including the low rato of interest allowed, is gradually going out of favour. The Age says the returns fall to indicate any recoverj In trade. On the oontrary, the large reserves held by the banks suggest that outlets for the profitable employment of money are still limited, and the

uncertainty in the future ia shown by large Duma being kept to meet popeibls contlcgenoles until something practical Is done to relieve tbo apprehension ot troubles occurring. When the deferred deposit rccelpt3 begin to mature It cannot look for any Improvement In tbe banking position, It aaya the balance sheet)! of all Australian banks show that tbe earning power has been ateadily on tbo deollne, aud the strongest pi the institutions are not now making profltjß which will enable them to pay anything like the dividends of the past. Host of them are burdened by having to pay Interest on deferred deposits considerably above tba present value of money.