BANKING RETURNS

Otago Witness, Issue 3331, 16 January 1918, Page 38

BANKING RETURNS

THE DECEMBER QUARTER. PROSPERITY AS GREAT AS EVER. STATE FINANCES IN HEALTHY CONDITION. (From Oub Special Correspondent.) WELLINGTON, January 12. There are two outstanding features in the banking returns for the closing quarter of 1917, and these are the expansion in the Government deposits and in the Government deposits and in the advances. The shipping difficulty is strongly reflected in the banking figures, for the growth of the free and fixed deposits is relatively small. There is, however, no apparent setback in the prosperity of the dominion, which is as great as ever. Dealing first with the deposits, all classes show an increase of £4,560,160, as under: — Dec., 1916. Deo., 1917. Ino.

Totals ...£37,619,681 £42,170,841 £4,560,160 The public deposits have increased by a little over a million sterling. The growth of the Government deposits is no doubt duo to the Hotution of the last loan, the bulk of the payments falling due in the past quarter. The Government deposits were never so large as they are now, and the following table, showing the deposits of tho Government with the looal banks for the December quarter of three years, is interesting:— December, 1916 £3,030,645 December, 1916 6,358,863 December, 1917 9,905,324 In two years the deposits have more than trebled, and the State finances are obviously in a healthy condition. The smaller growth of the public deposits—and they show only halt the increase exhibited a year ago—is duo to the money being lent to the Government and to the difficulties in shipping wool, meat, and tho other products, and this difficulty has compelled many to seek accommodation from the banks, which would account for the increase in the advances, which total £4,554,573. The gain in the free deposits totals £464,974, or about 2ij per cent., the figures of tho several banks, showing as under

It is unusual to see the Bank of New Zealand show a backward movement, but the semi-State institution is being called upon to render many services just now, and unless one knew something of the inside conditions it would bo impossible to assign a reason for this shrinkage; The fixed deposits exhibit an expansion of £548,725, equal to about H per cent., the figures of the individual banka being as under: —

The deposits have grown steadily since 1913, the expansion in 1915 being very pronounced. The aggregates of the free and fixed deposits for t»e last five years are given in the table appended:

The gain in 1017 is the smallest shown in the four years. Turning now to the advances, the figures exhibit an increase of £4,564,573, equal to about 16 2-3 per cent., in which all the banks shared except the Union Bank. As usual, the Bank of New Zealand was very heavily drawn upon. The figures of the individual banks show as under: —

* Decrease

* Decrease. The discounts amounted to £1,337.534, as compared with £1,668,222 for the December quarter of 1916, showing a decrease of £330,888. Traders apparently are not making much use of bills, probably because they prefer paying for goods in cash and securing the trade discounts, which should mean something to them with the prices of commodities ruling at such high levels. The advances and discounts for each of the past five years are given in the ta-ble below: —

The movement in the advances has been upwards for the past two years. There was a decline in 1915, hjut the shipping difficulty was not at all serious then. Another interesting table is that showing the excess of deposits over advances and discounts, and the deposits do not take account of the Government deposits. The figures are given below: Dec. Expess of

The excess last quarter is considerably smaller than in 1916 and 1915, but the position will right itself as soon as the produce in store is realised and brought into account.

The note circulation and the coin and bullion exhibit substantial increases, the aggregates for each of five years being as under: —'

Legal tender note? are included in th© aggregates of coin and bullion. The note in circulation shows a substantial growth, indicating that the internal conditions aro satisfactory. In view of the fact that the Minister of Finance will, in the course of a few weeks, ask for another substantial amount for war purposes, one would like to have seen tho public deposits show greater expansion, but as wo are promised more vessels to take away the stored produce, it is more than likely that by tho close of the current quarter Several millions sterling will be credited to the producers. In any event, tho nexti war loan will be as successful as the others, for the people have the money to advance to the Government. The war prosperity is still with us.

Government deposits ... £6,358,863 £9,905,324 £3,546,461 Free deposits ... 18,031,742 18,496,716 464,074 Fixed deposits 13,229,681 13,777,801 648,725

Dec., 1916. Dec., 1917. Inc. >ictv Zealacd c-C8.S-17.6fiC £8,740,160 *£107,197 Union .. 2,301,195 2,417.490 113,005 N.S.W. , 2,169,329 2,468,285 288,957 Australasia . 1,915,991 1,974,563 58,569 National . 2,591,161 2,665,549 74,085 Commercial 202,814 240,669 37,885 Totals . £18,031,742 £18,496.716. £464,974 * Decrease.

Deo., 191G. Dec., 1917. Inc. New Zealand £6,612,072 £6,928.918 £318,846 Union ... . 1,597,122 1,607.405 10,283 N.8.W. 2,154,570 2,044.731 *109,-839 Australasia . 886,347 1,060,633 174,280 National 1,928,423 2,062,225 133,802 Commercial . 60,642 73,889 23,347 Totals £13,229,078 £13,777,801 * Decrease. £548,725

Deo. Free n.ved quarter. deposits. deposits. Tot.il. 1913 ... £12,203,875 £10,545,346 £22,830,220 1314 ... 13,675,479 10,727,620 24,403,099 1016 ... 17,203,710 11,861,682 29,165,301 1916 ... 18,031,742 13,229,076 31,260,813 1017 ... 18,406,718 13,777,801 32,2.4,517

Dec., 1916. Doc., 1917. Inc. New Zealand £10,898,360 £14,036,613 £3,138,253 ... 4,359,357 4,315,212 ♦44,145 N.S.W. ... 3,048,502 3,577,704 529,112 Australasia ... 3,021,696 3,431.917 410,221 National ... 3,758,320 4,070,170 311 850 Commercial 212,083 231,365 19,282 Totals . £25,208,408 £29,062,081 £4,364,573

Dec. quarter. Advances. Discounts. Totals. 1013 ... £31,826,746 £2.014,589 £23.841,33". 1914 ... 23,121,235 1,801,573 - 24,932,808 1915 ... 22,589,133 1,453,703 24,042,839 1916 ... 25,298,408 1,688,222 26,966,630 1017 ... 29,662,981 1,337,334 31,000,316

quarter. Deposits. Advances. advances. 1913 ... .. £22,839,220 £23,841,335 £1,002,115 1914 ... 23,403,099 24,932,808 529,709

1915 29,155,301 24,042,839 5,112,463 1910 ... 31,260,818 26,966,630 4.294,183 1017 32,274,517 31,000,315 1,274,202

Poo. quarter. Circulation. Coin and bullion 1013 ... £1,671,723 £5,290,183 19 i 4 ... 2,641,232 6,209,113 1915 ... 3,097,816 6,950,516 1918 ... 4,778,267 7,688,093 1917 ... 6,464,695 9,993,391