BANKING RETURNS

Otago Witness, Issue 3149, 22 July 1914, Page 4

BANKING RETURNS

A SATISFACTORY POSITION. WELLINGTON, July 14. I The banking returns for the June quarter show movements that are not unfavourable. The deposits, both fixed and free, have increased by £948,250, as compared with the corresponding quarter of last year, the re- , suit, no doubt, of the larger exports. The advances expanded by £1,512,355, but, as the discounts were less by £152,180, the net increase in the accommodation given by the banks is thus £1,360,175. The circulation . is less than it was in the corresponding i quarter, but, as the barometer of trade, the j note issue is now of little value, because, in 1 the larger centres, a strong preference is shown for metal currency. The several classes of deposits compare as under : June, 1913. June, 1014. Increase.

A striking feature of the above table is the healthy state of the Government deposits, and the total increase places the banks, and especially the Bank of New Zealand, in ample funds to meet the demands of the public and the Government. The fixed deposits exhibit the moderate increase of £169,062, and all the banks but one share in this, as the appended table shows:

Totals ... ... £10,637,963 £10,807,023 £169,062 * Indicates a decrease. The Union Bank is the only institution to exhibit a shrinkage, while the National : Bank shows a very substantial gain. Tho movements in the fixed deposits during the past five years show as under: June

The fixed deposits have been practically stationary for some years past, the reason being that there has been a good demand for money, with plenty of scope for investing in one direction or another. As already stated, the free deposits, or current account balances, disclose an improvement of £779,188, and the total at the close of the quarter is large. The movements, as they affect the several banks are given in tho table added:

After so excellent an export year as has been enjoyed there is nothing surprising in the fact that the current account balances have increased, and, although the total is comparatively small, it must be remembered that there was an adverse movement, and the deficiency then created has had to be made good. Under tho circumstances, the increase is very satisfactory. The position is more clearly shown by taking the aggregates of the free deposits for a series of years. The figures are given in the table appended:

The past quarter’s total is easily the highest, and shows that the economic conditions arc very healthy. Now we come to the advances, and the quarter exhibits an increase of £1,512,355 over the corresponding quarter of last year. The banks have been able to meet all demands, and the freedom with which they have advanced money indicates that the bankers are well satisfied. The movements in the advances of each bank show as under:

Last year the advances were restricted, and there was a certain amount of stringency, but now the banks are able to lend freely, if cautiously. The advances in the Juno quarter of each of the past five years arc disclosed in the following table:

j The discounts exhibit a shrinkage of i £152,180, which is additional evidence of the j improved economic conditions. The total i for th© past quarter is £1,799,189, as against ' £1.951,369 last year, and £1,839,004 in 1912. Taking the fixed and free deposits together, and the advances and discounts for a period of five years, we get the following: June. , Excess ol

The note circulation has decreased, but that has been the tendency for the past two or three years. There is a very substantial increase in the coin and bullion. The figures under these two heads are as under:

1 Taking the returns in their entirety, there is cause for much satisfaction. A vast improvement is disclosed. The increase in the free deposits and a shrinkage in the discounts arc evidence of better conditions, while the increase in the advances prove that enterprise is active. The farmers have done exceedingly well, especially the wool farmers. One banking house is able to credit its clients with £162,000, this amount being the surplus realised at the London wool sales m May. New Zealand finances have been straightened up during the past two years. The banks have strengthened their resources, and the Government finances have been placed on a sounder basis, and the dominion is now beginning to reap the benefit.

Government deposits £ 1,988.938' £3,341,411 £1,352,472 Free deposits 13,919,531 14,698,719 779,188 Fixed deposits 10,637,963 10,807,026 169,062 Totals £26,546,432 £28,847,155 £2,300,722

1 Bank. June, 1913. June, 1914. Increase. New Zealand £5,408,147 £5,466,531 £58,384 Union \ 1,355,726 1,286,569 *70,157 New South Wales 1,665,336 1.692,694 27,368 Australasia 633,389 682,085 49,596 National 1,569,659 1,669,187 99,528 Commercial 5,716 10,059 4,343

quarter. 1910 ... ... £10,515,094 1911 10,559,715 1912 ■ 10,229,896 1913 10,637,963 1914 10,807,025

Bank. June, 1913. ■June, 1914. Increase. New Zealand .. £6,602,073 £6,927,300 £324,627 Union 1,969,880 2,142,466 172,586 New Sonth Wales 1,753,289 1,809,909 56,620 Australasia 1,497,834 1,561,096 63,262 National . 2,075,898 2,195,189 119,291 Commercial . 19,957 62,759 42,802 Totals .. £13,919,531 £14,698,719 £779,188

June quarter. 1910 £12,946,101 1911 13,683,160 1912 14,478,802 1913 13,919,531 1914 14,698,719

Bank. June, 1913. June, 1914. Increase. New Zealand £8,343,724 £8,868,426 £524,702 Union 3,390,300 4,001,442 611,142 New South Wales 2,920,380 3,015,840 95,450 Australasia 2,742,295 2,899,587 157,292 National 3,224,272 3,316,334 92,062 Commercial 6,330 38,037 31,707 Totals £20,627,311 £22,139,666 £1,512,356

June quarter. 1010 ... .. £16,236,228 1911 ... 18,784,390 1912 21,154,885 1913 20.627,311 1914 22,139,666

quarter. Deposits. Advances. Deposits. 1910 ... £23,461,195 £17,935,568 £5,525,627 1911 24,242,875 20,615,855 3,627,020 1912 24,708,697 22,993,889 1,714,808 1913 24,557,494 22,578,680 1,978,814 1914 25,505,744 23,938,855 1,566,889

June quarter. Circulation. Coin and bullion 1910 ... ... £1,645,784 £4,994,850 1011 ... 1,717,006 5,103,664 1912 ... 1,773,914 5,251,995 1913 ... 1,714,159 6,160,303 1914 ... 1,699,809 6,500,450