BANKING RETURNS

Otago Witness, Issue 3292, 18 April 1917, Page 7

BANKING RETURNS

FIGURES FOR MARCH QUARTER PLENTY OF CAPITAL. INCREASING TENDENCY TO BORROW. (Feoit Oub Special Cop.eespondent.) WELLINGTON, April 12

Tho banking returns for the first quarter of tho current year are available, and the figures are interesting from tho fact that while savings are being made there is an increasing tendency to borrow from the banks, Thus, while tho fixed and free deposits together show in tho aggregate an increase of £3,082,487 as compared with tho corresponding quarter of 1916, the increase in tho advances and discounts amounts to £3,961,038. That shows that the amount borrowed from tho banks exceeded tho amount deposited with them by £878,551. It is hard to account for this movement in view of tho fact- that money _ is rolling into tho country by- tho high prices ruling for produce. While tho transport problem affects shipments from this end, there is no such difficulty with respect to imports,_ as the vessels coming from tho United Kingdom must fill up with whatever merchandise freight may be available. The probability is that merchants and others have to find a greater volume of credit to pay for the merchandise, which is steadily mounting upwards and perhaps, too, during the past quarter they were able to import a larger A r olume of merchandise than was the case in tho March quarter of last year. The movement is rather favourable than otherwise, for it proves that credit can be profitably employed just now. _ The position with respect to deposits is disclosed in tho table appended:—

Totals ... £36,123,992, £41,713,659 £5,583,667 The expansion In the Government deposits is a feature of the above table. For the March quarter of 1915 the amount stood at £3,256,715, so that the total has more than doubled in two years. A large part of the total would probably represent trust funds, the New Zealand Government now handling large amounts on behalf of the Imperial authorities in purchasing produce in the dominion. The increase in the free deposits is moderate, but all the banks shared in it. The Bank of Now Zealand showed an expansion of £944,768, the Union Bank £248,619, the Bank of New South Wales £183,540, the Bank of Australasia £292,029, the National Bank £167,213, and the Commercial Bank £42,584. The fixed deposits show a relatively large increase, and the figures of each bank are

Totals ... £12,182,10-1 £13,385,858 £1,203,734 The Commercial Bank shows an increase of nearly 50 per cent., and the Bank of NewSouth Wales also shows to advantage. Taking the fixed and free deposits for a series of years we get the follow-ing table: —

The growth in the free deposits is smaller than in 1916 and 1915. Coming now to the advances, as already stated, there is an increase of £3,895,830, compared with a year ago, and all tho banks except tho Union Bank shared in the expansion, as the table ajipended will show:

Totals £22,240,237 £20,142,067 £3,895,830 * Decrease. The discounts show the moderato increase of £65,208, for which four of tho institutions arc responsible. The Union Bank and the Bank of Australasia exhibit decreases, the amount for tho former being £17,679, and for the latter £10,437. Taking the discounts and advances for five years, we get the following: March.

Tho increase under both heads for the war totals £3,961,038. The excess of deposits over advances is shown in the table following:

The excess is not so largo this year as it was last year, but it is still rather big. Now wo come to the note circulation and the coin and bullion. There is an increase of £1.465,898 in the circulation as compared with last year —equal to over 45 per cent. The figures for the March quarter compare as under: —

The incrcas'o in tho coin and bullion for tho year totals £742.781, which is a large enough ratio for the increased circulation. Taking tho figures as a whole, it is obvious that there is an abundance of capital in tho dominion, and as tho State will soon bo making a call on the community for a substantial war loan, it is as well that the financial situation is as good a 3 it is.

March,March, Government 1016. 1917. Increase. deposits . £4,855,939 £7,357,119 £2,501,180 Free deposits .. . 19,091,949 20,970,702 1,878,753 Fixed deposits.. . 12,182,104 13,385,833 1,203,734

appended March, - March, Bank. 1916. 1917. Increase. New Zealand . .. £6,120,355 £6,711,191 £ 690,836 Union .. 1,553,656 1,588,728 35,072 Now South Wales . 1,864.252 2,192,422 328,170 Australasia 774.847926,481 151,634 National ... . .. 1,836,711 1,917,467 80,756 Commercial 33,283 49,549 16,266'

March Free Fixed Total quarter. deposits. deposits. deposits. 1913 ... £13,460,530 £10,426,726 £23,887,250 1014 ... 13,475,771 10,554,470 24,030,250 1915 ... 15,958,733 10,870,307 26,829,239 1916 ... 19,091,940 12,182,104 31.274,053. 1917 ... 20,970,702 13,385,838 34,356,540

Bank. March, 1910. March, 1917 Increase. New Zealand ... £9,009,293 £11,711,691 £2,702,393 Union ... 4,214.825 4,160,071 84,764* N.S. Wales 2,760,810 3,166,163 405,352 Australasia ... 2,834,755 2,915,278 80,523 National ... ... 3,274,617 3,962,278 687.661 104,650 Commercial 121,037 226,587

Quarter. Discounts. Advances. Totals. 1913 £1,967,351 £21,025.105 £22.992,656 1914 2,017,107 21,649,643 23,666,760 1915 1,634,418 22,106,154 23,740,063 191G 1,487,655 21,248,237 23.733,892 1917 1,552,863 26,153,067 27,694,930

Starch. Excess of Quarter. Deposits. Advances. Deposits. ■ 1913 . £23,887,256 £22,992,456 £ 894.800 1914 24,030,250 23,666.750 363,500 1915 26,829,239 23.740,662 3,083,677 1910 31,274,053 23,733,892 7,540,161 1917 84,356,540 27,694.930 0,601.010

March Quarter. Kote Circulation. Coin & Bullion 1013 *1,703.318 £5,032,155 1914 1,666,939 5,317,801 1015 2,639,585 6,420,559 191G 8,171,553 7.120,854 1017 4,637,551 7,863,635