BANKING RETURNS.

Otago Witness, Issue 2862, 20 January 1909, Page 14

BANKING RETURNS.

FIGURES FOE DECEMBER QUARTER WELLINGTON, January 13. The banking averages for the December ; quarter of iyOB disclose almost similar movements to those noted for the September quarter. There is again a substantial increase in the advances and discounts, a very heavy decrease in the free deposits or current account balances, and shrinkages in the note circulation and metal reserve. The figures in their entirety prove very conclusively tlhat the , banks in the Dominion have done their utmost to meet the demands made upon, them. The following table will illustrate, the matter : — i

"Thus it -will be seem that tibe banks have had to And £2,423,992 to meet the demands of depositors, .aad, in addition, have had to provide £1,440,621 for borrowers, making a total of d83>864,613. . Instead of censuring the banks for not ■fending freely., we must be thankful that they have been able to accommodate the' publio to the extent they have done, otherwise the <le(preaßion would have been felt rather severely in New Zealand. The advances show an increase of £1,209,665 as compared with the oorre- : spording quarter of 1907, and while every bank has shared in the increase the Bank of New Zealand has secured the lion's . share. The movements, as tbey affect each bank, are shown in the table appended : — > Dec, 1907. Dec, 1308. Increase.

The discounts for the quarter averaged £2,300,2&8, and this is a record for the December quarter. Compared with the December- quarter of 1907 there is the substantial increase of £230,956, of which £132,810 was the share of the Bank of New Zealand. The figures of the .several banks oompajie as undier: —

To obtain a thorough appreciation of ih« aggregates of the advances and discounts it is necessary to compare the f%mes for a aeries of years. In the past | seven years the movements have been as i under : —

In five years there has been on increase of over 50 per cent, in tli.e total*, but this is not an unfavourable feature, for it j is obvious that those who have borrowed the money have been able to make good use of it, and probably the greater proportaon, has been utilised in developing the resources of the countiy. ' Now we come to the deposits, and, as already stated, the free deposits disclose a being less by £1,606.352 than j in December, 1907. Comparing the figures . of each bank we obtain the following: —

The fixed <lei>o*it- exhibil the small increase of £24f.102. ard it i» surprising | that there should be any jncrea»e at all, , considenr.,^ the ■clc-htvtk! tliat crisis for I polity at cornpaiativclv L;;rh rates. This mcreyse seems io indicate thai torn** investors and speculators, are holding back, expecting to t,ee varies of s=ecuritie& recede, and it is ni.'-t po-^ible that <-s]»rc- \ tations may not b-- 7P7ii.-ed. Th" figures for each bank co.iimre :u- under: — i

Taking a series of years, the free and fixed deposits compare as under: — j

As showing the extent of the assistance | rendered by the banks to their customers j it may be stated that for years .past the ' fixed and free deposits combined exceeded • the aggregates of the advances and die- ' oounite, but last quarter the movement j was reversed, and the following table is therefore interesting : — |

We have now to deal with the nate j circulation and the -coin and bullion, and under both beads there aye -decreases. The shrinkage in note circulation, which is slightly more than £34,000, indicates < the state «f domestic trade. There is dul- | nees, but no depression. The figures for i seven yeare show as under : — j

Surveying the figures «« a whole, it does not appear that Any .retrograde movement has majndfeßted itself. New Zealand is holding its own, but there is still reason lor exercising care -and caution. ' With bountiful returns from the ajgiricultural and pastoral industries and lessened imports there is bound to be a revival in trade and a return to prosperity.

:. (juaxi 1903 1903 1004 1905 1906 1907 1908 ■ter. drcula<uon. £1,399,044 1,466,279 1,*51,813 1,466,884 1,611,221 1,641^68 1;607,222 Ooin, etc. £3,29^,090 3,746,580 3,953,075 4,052,173 4,696.768 4,984,«€6 4^85,766 T •

Dec. Quarter. L 902 L 903 L 904 L 905 L 906 L 907 L9OB i>epoßits. Advances. etc. .. £16,398,449 £12,949,010 .. 17,307.237 14,078,708 .. 17,524,886 15,248,149 .. 16,612,695 16,217.944 20,<»3,798 17,748,928 20,787,213 19f188,150 .. 19,422,053 21,428,751 * Excess of advances. Excess ol Deposits. £3,449.439 8,228,529 2,276.237 2,494,661 2,344,875304,083 •2,001,698 •I

IXec. Juftrter. 1902 1903 L9M 1905 L 906 L 907 1906 Free Fixed Deposits. Deposits. Totals. £ 7,676,082 £8.722,367 £16,398,449 8,861,648 8,946,587 17,307,286 8,426,376 9,099.010 17,524,386 8,836,507 9,776,098 18,612,605 10,250,640 9,843.258 20,003,796 11,136,009 9,651,294 20,787,213 9,629,657 9,892,396 19,422,053

Bank Xew Zealand .. Union .? t. X S Wales /. Auptraiasig, %, >» Totals .. IJO7. 4 CJ4.73" 1,822,730 1,636 0-14 581,784 1,456,001 fi,651 294 100c 3 . £ 1 703 620 1,307,278 1 694 628 G-16,087 1,479,683 9,8D2 396 Increase. £ 49,035 I 44, 548 £8 554 I 65,203 23 632 241,102 j

Dec. Dec. Bank. 1907. 1906. £ £ Sew Zealand .. 5,102,770 4.407,217 Union .. . 1.602,847 1,317,946 S T .S. Wales .. 1.498.CC8 1,226,320 &.ue-tralft=<ia . . 1 243.574 1 015.590 National .. 1.688,714 1,562,573 Totals .. 11,136 009 9,529 657 Decrease. ' £ I 635.559 284.899 271.7dS , 227,075 12G.171 1,606 352

Pec. Juttter. L9OJ2 L9OB L 904 L 905 .906 1907 Advances. Discounts. Total*. £11,114,951 £1,829,059 £12,944,010 12,085,611 1,993,037 14,078,708 13,092,138 2,156,011 15,248,149 14,081,460 2,136,484 16,217,944 18,622,649 2,126,376 17,7*3,928 17,918,858 2,960,272 19,983,130 19,123,523 2,800,228 21,428,751

I Bank. few 2e«,la-n<3 Inion ;o .. left S. Wal«8 .ustralasi* .. rational ,« Dec, 1907. 1 £ 949,884 219,042 841,140 312,765 Dec, 1908. . je 1,082,194 223,654 292,318 380,771 321,891 Increase. £ 132,810 3,112 46,277 39,891 9,126 Total* • » 2,069,272 2,300,228 230,956

X2UUJL. » * «•» ST«w Zealand 6,895,911 7,481,800 585,889 Jnion .. .. 3,181,040 3,240,966 109,926 Sew S. Wal<* 2,709,165 3,014,456 305,290 \.ustiw,la«a .. 2,725,453 2,920,281 194,808 ffation*! *« 2,448,289 2,466,041 17,752 . i — i Tolalfl .. 17,913,558 19,123,523 1,209,665

tovt. deposit* 'ree deposit* .. 'ixed deposits .. «• Dec., 3907 £ 1,962,428 11,136,009 9,651,294 7. Dec, 19U» £ 893,686 9,529,657 9,892,896 i Totals 22,739,731 20,316,739 advances )iscounts ■ • 17,913,868 2,0fct,273 19,123,528 2,300,228 I Totals 19,983,180 21,423,761