BANKING RETURNS.

Otago Witness, Issue 2914, 19 January 1910, Page 97

BANKING RETURNS.

We get an interesting table by comparing the free and fixed deposits 'Combined with, the advances and discounts

Talcing a period of seven years, the fixed and free deposits for the last quarter of each year compare as under:—

The increase in the fixed deposits amounts to £695,776, while for the corresponding quarter of ISOB the increase was only £241,102. The Union Bank and the Bank of Australasia exhibit decreases, but the others show increases. The figures are as under :

FIGURES FOR DECEMBER QUARTER. (From Our Special Correspondent.) WELLINGTON, January 12. The banking returns for the December quarter reveal very healthy and satisfactory conditions. Twelve months ago the advances and discounts exhibited abnormal increases, while there was a marked shrinkage in the deposits. There is now a complete change, and a reversion to the normal. The deposits, including the Government deposits, is the aggregate show an increase of £1,880,431, while the advances and discounts are less by £2,644,182 as compared with the December quarter of 1908. The only adverse feature to be noted is a shrinkage of £33,267 in the note circulation, but caution must be observed in accepting this movement as an indication of a contraction of internal trade. It will be remembered that during the last session of Parliament the tax on the note circulation was increased, and it is very probable that as a result the banks are reducing their note issue. Dealing first with the aggregate assets and liabilities, we obtain the following comparison. Surplus of Assets. Liabilities. Assets. Dec., 1903 .. £28.977,861 £22,.103,898 £6,873,963 Dec., 1909 .. 26,723,677 23.923,975 2,799,702 These figures illustrate the great change that has taken place, but the other items are more illuminating. The advances exhibit a decrease of £2,179.425, the actual figures being £19.123,523 for the December quarter of 1908, as compared with £16,944,098 for the same quarter of 1909. The movement affected all the banks, as the following table shows :

The liquidation of surplus stocks, general economy, and greater caution in trading have enabled the customers of our banks to reduce their overdrafts, while the higher prices realised by wool have helped to wipe out bank loans. This is as entirely satisfactory position. The discounts tell the same pleasing tale, for here also is shown a substantial reduction. The discounts for the past quarter aggregated £1,835,471. as against £2,300.228 for the corresponding quarter of 1908. All the banks were affected by the movement, as the figures appended show.

Comparing the advances and discounts for the December quarter of seven years we obtain the following :—•

We have now to deal with the deposits, and the aggregates compare as under :

The increase amounts to £1,880,431, the movement under each head being about the same. The free deposits exhibit an increase of £533,,415, while at the corresponding date last year a decrease of £1,606,352 was shown. The amount of the free deposits held by each bank is disclosed in the table appended :

taken together. Under normal condition.? the deposits exceed the advances, but for the December quarter of 1908 the advances were larger by over £2,000,000. The table is as follows

The figures are very satisfactory, and it is marvellous how quickly there has been a recovery. The note issue, as already stated, shows a shrinkage, but the increased note tax must be taken into account when considering this movement. Coin and bullion have been augmented to the extent of about half a million sterling. These two items for seven years compare as under :—•

The figures, as a whole show that the banks are in possession of abundant funds, and are capable of meeting all demands likely to be made upon them. The business community is in better credit, and with the continuance of satisfactory prices for our produce the credits wilt increase. Confidence is being restored, and such figures as we have just dealt with tend to strengthen the confidence. The Dominion is beginning to share in the trade revival that has shown itself in England and America, and we feel we are on safe 'ground in predicting that the current year will see New Zealand enjoying a big profitable trade and revelling in prosperity.

December, December, DeBank. 1903. 1909. crease. New Zealand .. £7,481.800 £6,510.931 £964,819 Union 3,240.966 3,074.339 166,627 N.S. Wales , 3,(114,455 2,386,919 627.536 Australasia ,. 2,920,261 2,537,637 382,571 National ., 2.466,041 2,428,172 37,869 Totals . £19,123,523 £16,944,093 £2,179,425

Decomber, December , DeBank. 1908. 1909. crease. New Zealand . .. £1.082.194 £88-1,903 £197,291 Union 223,054 210,107 12,947 N.S. W ales . 292,318 195,382 96.936 Australasia , . 380,771 262,678 118,093 National .. 321,891 282,401 39,490 Totals . £2,300,228 £1,835,471 '£464,757

December quarter. Advances. Discounts. Total. 1903 .. £12.035,611 £1,933,097 £14.078.708 1904 .. 13,032,138 2,156,011 15,248,149 1905 .. 14,031.4.60 2,136,484 16,217,914 1906 .. 15,622,549 2,126,376 17,748.923 1907 ., 17,913,858 2,069.272 19,983,130 1908 .. 19,123,523 2 300,223 21.423,751 1909 .. 16,844,098 ■1.835.471 18,779,569

December, December, 1903. 1903. Government deposits .. £ 833,636 £ 1,431,926 Free deposits . 9.523.657 10,173.072 Fixed deposits ■ . . ’ 9,892,336 10,563,172 Totals .. .. £20,315,739 £22,196,170

Dec., Dec., InBank. 1908. 1909. crease. .New Zealand .. £4,407,217 £4,635.160 £277,943 Union 1.317.948 1.437,444 119,496 N. S. Wales .. 1.226,320 1,349,370 123,050 Australasia 1,015,599. 1.045,871 30,272 National 1,562,573 1,655,227 92,654 Totals .. £9,529,657 1 °- I CO I Ih 1 o' $ £633,415

Dec., Dec., InBank. 1903. / 1909. crease. New Zealand.. £4, 703,820 £5,337.820 £634,000 U nion 1.367,278 1,333,532* 33.746 N. S. Wales .. 1,694,623 1,732.472 37,844 Australasia .. 616,987 629,037* 17,950 National 1,479.683 1,555,311 75,628 Totals £9,892,396 £10,583,171 * Decrease, £695,776

Dec. Free Fixed quarter. deposits. deposits. Total. 1903 £3,361,618 £8,9-45,587 £17,307,235 1901 .... 8,425,376 9,039,010 17,524,380 1905 8,836,507 9,776.088 18,612,605 190G 10,250,540 9,843,258 20,083,798 1907 11,136,009 9,650,234 20.787,213 1908 9,529.657 9,892.386 19,422.053 1909 .. 10,173,072 10,588,172 20.761,244

Excess Deo. of quarter. Deposits. Advances. deposits. 1903 . £17.307,237 £14,078,708 £3,228,529 1901 . . 17.524,386 15,248,149 2.276,237 1905 . 18,612,605 16.217,944 2,494,661 1906 . 20,093,798 17.743,923 2,344,875 1907 ., 20,787,213 19,983,130 804,083 1908 . . 19,422.053 21,423,751 — 1909 . 20,761.244 18,779,569 1.981,675

Dec. Note Coin and quarter. circulation. bullion. 1903 £ 1.466,279 £3,746,580 1901 .. 1,451,813 3,953,075 1905 .., 1,468.834 .. 4,052.173 1906 .. 1.611,221 .. 4,696,758 1907 .. .. 1,641,858 4,984,566 1903 .. - .. 1,607,222 4.585,756 1909 , ... 1,573,955 .. 5,090,845