BANKING RETURNS

Otago Witness, Issue 3239, 12 April 1916, Page 28

BANKING RETURNS

FIGURES FOR MARCH QUARTER

NEED FOR ECONOMY.

(Fkom Oue 3peoial Correspondent.) WELLINGTON, April 6.

The banking returns for the first quarter "of 1916 fully reflect the effect of tlie war on JNew Zealand. Wo have obtained extraordinarily h.gh prices for the produce we have* been aLne to export, while the imports have been restricted partly by the inability ol manufacturers to suppiy the required goods, partly by the snortage of tonnage tor the transport ot goods, and partly by the high prices ruling causing a check to consumption, with the resuit that money is accumtuat.ng here rather rapidly, 'ihe banking figures show this very clearly, and tiie salient features may be stated as follows:—Government deposits increased by £1,599,224; tree depos ts increased by £6,i30,c1i j fixed deposits increased by £1,311,597; ail deposits increased by £6,044,050; advances increased by £140,093; discounts increased by £146,763; advances and discounts together decreased by £6670; circulation increased by £511,968; and coin and bullion increased by £700,505. The comparison is with the corresponding quarter of IGIS, and is entirely satisfactory under present conditions. Had the position been normal an accumulation of credit of this character would indicate a want of confidence, but under war conditions the accumulation is satisfactory, because when the war is over we will be able to find full and profitable investment for the money. Turning to the deposits the aggregates compare as under : Mar, 1915. Mar, 1916. Increase. Government deposits ... £ 3,250,715 £ 4,855.939 £1,599,221 Free deposits 15,958,732 19,091,9-19 3,133,217 Fixed deposits 10,870,507 12,182,104 1.311,597 Totals ... £30,085,954 £30,129,992 £6,044,038 The very substantial increase in the Government deposits is probably due to the revenue receip'ts being larger than anticipated, and if that is so the Finance Minister will be able to show a satisfactory surplus. The free deposits or current account balances again show expansion, and the increases are shared in by all the banks, as the table appended shows: — Mar, 1915. Mar, 1916 Increase. Now Zealand... £ 7.415,521 £ 9,100,994 £1,745,473 Union 2,433,980 2,731,028 297,042 N.S Wales ... 1,992,136 2,403,786 411.650 Australasia ... 1.600,716 1,930.393 204,177 National ... 2,355,334 2,097,966 342,632 Commercial ... 95,039 107,282 72,243 Totals ...£15,958,732 £19,091,949 £3,133,217 The iixed deposits exhibit a much larger increase than was the case a year ago, and an excellent view is obtained by taking the deposits for a series of years as under: —

Besides the banking deposits there are the deposits in the Post Office Savings Bank and with the building societies, but all such deposits would be included in the bank figures. The advances, as already stated, show the moderate increase of £140,093, and the movements as they affect the several banks arc disclosed in the table following:-

Eut this increase of £140,093 is more ihau sot off by the contraction of £146.753 in tha discounts, so that the accommodation obtained from the banks is less by £66 as compared with a year ago. Tailing advances and discounts for a series of yt:.i« we obtain the following: March

The aggregate of the advances am discounts, tiiough less than last year, isgiV-aisr. than in 1914 and the two preceding \ us. Taking the aggregates of the fixed an I free deposits and the aggregates of the ad ue s and discounts the excess of the one over the other for a series of years is exhil it ■ in the table appended:—

1016 31,274,053 23,733,802 7,540,161 As compared with a year ago the note circulation increased by £531.968, and tho banks have more than provided for this, as the coin and bullion have been increased by £700,305. The figures for a series of five years compare as under: —

1916 3,171,553 7,120,5G4 The banks are flooded with the idle money of the community, but they cannot afford to hold the money idle. Since there is no scope for employing the money here, they are it elsewhere—probably in London, —where it 's of most service to tho Empire. This feature is exhibited by the assets and liabilities oi five years:

their funds elsewhere; otherwise the assets would approximate to the liabilities. Taking the figures all round, they are very satisfactory, but at the same time they arc apt to give a false impression. We cannot afford to be extravagant, for all the money that is saved will be needed after the war, and we have not saved enough as yet.

March Free Fixed quarter. deposits. deposits. Totals. 1912 £13.611,110 £10,372,756 £24,016,902 l!)i;t 13,460,530 10.426,726 23.887,256 19H 13,475,771 10,554,47!) 24,030,250 1016 ... 15,958,732 10,870,507 2(5,829,2311 1916 . ... 19,091,949 12,182.104 31,274,053

Mar, 101"). Mar, 191G. New Zealand :.. £9,243,08-1 £9,00:1,203 f £233,791 Union 3,843,409 4,244,825 * 401,416 N" S. Wales 2,983,408 2,760,810 t 222,598 Australasia 2,770,994 2,834,755 * 63,761 Kational 8,196,607 3,274,017 * 78,010 Commercial 68,642 121,937 * 53.295 Totals £22,161,144 £22,2-10,237 * 1-10,093 f licoreuse. * lncrcubo.

quarter. Discounts. Advances. Ti .. 1912 £1,845,497 £21,234,053 £23.; -'.550 1313 1,967,351 21.0i5.105 22 . !■• 1914 2.017.107 21,649,643 23 ' '\7 • ' 1915 1,684,418 22,106,144 2:).:'.' MSJ 1916 1,487,655 22,246,237 23, ".:....-• '-

uarter. Deposits. Advanc !<?S. ol dep. 1912 ... ...£24,016,902 £23,129,1 550 £ 887,363 1913 ... ... 23.8a7.2nt; 22,992,! 156 891.800 1914 ... ... 24.0S0.250 23,866, J 50 S63.500 1915 ... ... 2G.S29.2S:) 23,740,; 562 3,088,677

March quarter. Circulation. Coin and bullion. • 1912 ... ... ... £1,708,889 £5,323,014 1913 1,703,318 5,032,155 1914 1,666,939 6,317,861 1915 2,639,585 6,420,559

jiaron uarter. Assets. Liabilities. 1912 1013 £31,427,451 30,856.091 £28,195,668 27,820.730 1914 31,526,774 28,567.207 1915 32,738,712 32,898,488 1916 34,123,759 39,445,071 The b anks —or some of them—are usin