BANKING RETURNS

Otago Witness, Issue 3396, 16 April 1919, Page 16

BANKING RETURNS

FIGURES FOR MARCH QUARTER.

CONTINUED PROSPERITY

NEED FOR INCREASED PRODUCTION.

The Salient features of the banking returns for the first quarter of the current year, compared with the figures for the corresponding quarter of last year, show that the Government deposits decreased by £1,651,108, while the free deposits expanded by £2,749,379 and the fixed deposits by £593,949. The advances increased by £2,624,601 and. the discounts by £261,147. Comparing the aggregate figures for th« two quarters, we get the following:— Deposits. Mar.. 1918. Mar., 1919. Increase. Government ...£9,706,949 £ 8.055,841 * £1,651,108 Free 21,614,302 24,363,681 2,749,379 Fixed 13,891,196 14,485,145 593,949 Totals ...£45,212,447 £46,004,667 £1,692,220 ♦Decrease. The increase in the free deposits is large, being more than £2,000,000 greater than the increase shown in 1918 over the preceeding year v All the banks shared in the increase, as the following table will show :

Totals ...£21,614,302 £24,363,681 £2,749,37* The National Bank shows relatively the largest gain, but there is an excellent improvement all round. The fixed deposits are larger than last year, and in this also all the banks have shared, as the table appended shows:—

Totals ...£13,891,196 £14,485,146 £593,949 Ever since the war the aggregate of &• free and fixed deposits has steadily increased, and this is shown below: —

Turning to the advances there is to b« noted that at increase of £2,624,601, in which all the banks shared, the figure* showing as under: —

Totals ...£28,094,431 £30,719,032 £2,624,601 The discounts exhibit an increase this year, while last year there was a shrinkage* It is hard to account for these movements. The discounts in the aggregate are smalL but perhaps the time .is not far distant when the bankers will have their bill portfolios comfortably filled. The discount figures of the several banks compare as under: ■ ■

£1,223,46? £1,484,612 £261,147 * Decrease. The Union Bank is the only institution to disclose a shrinkage in its discount* Taking the fixed and free deposits together and the advances and discounts 'together th« excess of the one over the other is given in the table below:

From 19X6 the advances have grown far more rapidly than the deposits, and thif may be attributed to the higher costs of commodities and labour. It requires a good deal more capital now to conduct a business than was needed during the first year or two of the. war.- The note circulation continues to expand, the total for the pagi quarter being £596,662 more than in March, 1918. The coin and bullion show an increase of £91,811, and are considerably more than the note circulation. The table given below is interesting:—

The growth of the circulation disclose! the influence of the war and the expansion of credit. The circulation last quarter wai four times what it was in 1914, and may still further increase before there can be any effort made to bring it back to normal The figures as a whole are satisfactory, and disclose a continuance of the prosperity that we have become accustomed to. With the large amounts at credit the transition period, which has S already begun, should not cause any trouble. There must, however, be increased production, for when commodities revert to their normal level it will require a great deal more than we are exporting now to give us our present measure of prosperitv. We have contracted heavy obligations during the war, and these will be a drag upon us unless we can substantially increase the volume of our exports.

Bank. Mar., 1918. Mar., 1919. Increase. New Zealand £10,245,118 £11,556,213 £1,311,098 Union ... . .. 8,020,162 3.264,249 244,087 N.S. Wales . .. 2,709,318 2,914,686 205,368 Australasia . .. 2,345,585 2,698,780 353,195 National .. 3,036,943 3,586,965 550,023 85,619 Commercial , 257,176 342,788

Bank. Mar., 1918. Mar., 1919. Increase, New Zealand ... & 6,839,823 £7,157,647 .€317,724 Union ... 1,697,680 1,707,118 109,4Sf N.8. Wales ... 2,213,512 2,273,364 69,852 Australasia ... 1,093,085 , , 1,098,258 5,171" National ... 2,062,367 2,127,892 65,530 Commercial 84,729 120,968 36,289

March Free ' Fixed Total quarter. deposits. deposits. deposits. 1914 ... .-613,475,771 £10,654,479 £24,030,250 1915 ... 15,958,732 10,870,507 26,829,239 1916 ... 19,091,949 12,182,104 81,274,053 1917 ... 20,970,702 13,385,838 34,356,540 1918 ... 21,614,302 13,891,196 85,505,498 1919 ... 24,363,681 14.485,143 88,848,826

Bank. Mar., 1918. Mar., 1919. Increase. New Zealand £13,357,118 £14,781,838 £1,424,7» 95,781 Union ... . .. 3,998,828 4,094,61* N.S. Wales . .. 3,319,123 3,677,904 368,871 289,341 Australasia .. 3,176,371 3,465,714 National .. 3,976.277 4,246,493 . 270,319 Commercial . 266,716 452,469 185,763

March, March, Bank. 1918. 1919. Increase, Kew Zealand .... . ... £ 727.834 £'884.453 £156,619 Union ... 104,762 68,687 •39,075 28,587 New South Wales . ... 88,402 111,989 Australasia ... . ... 103,065 144,656 36,591 National ... 167,386 199,573 32,181 Commercial ... . ,.. 26,016 78,255 62,239 i. —

March Excess quarter. Deposits. Advances. of deposits. 1914 . ... £24,030,250 .-£23,666,750 £ 363,800 1915 , ... 26,829,239 23,740,562 3,088,671 l!)ld ... 31,274,(i3 23,733,892 7,540,181 1917 , ... 34,356,640 27,694,930 6,361,610 1918 ... 35,506,498 29,317,896 6,187,601 1919 ... 38,848,826 32,303,644 6,645,183

March Coin and quarter. Circulation. Bullion. 1914 £1,066,935) £5,317,861 l&l'i 2,659,685 „ 6,420,659 1016 ... ... 8,171,553 7,120,851 1917 4,637,451 7,863,635 1918, ... ... 6,915,529 7,984,188 1919 6,512,191 8,076,999