ADVANCES LOWER

Poverty Bay Herald, Volume LX, Issue 18063, 13 April 1933, Page 10

ADVANCES LOWER

.MARCH BANK RETURNS SOME FAVORABLE SIGNS An interesting position is disclosed by the principal figures in the banking “averages” for the first quarter of the year, which were released .on Thursday. There has been an increase not only in fixed deposits, but also in free deposits, while advances show a further reduction. There is a considerable excess of deposits over advances. The principal changes in the figures as compared with those of a year ago are as follow: £ Free deposits increased .. 402,400 Fixed deposits increased .. 742,099 Govt, deposits increased •.. 624,829 Advances decreased .. .. 1,732,003 Note circulation increased.. 129,790 Coin and bullion decreased 1,384,946 G.ovt. securities increased 3.230,580 FREE AND FIXED DEPOSITS. During the year tile free deposits have increased from £10,998,822 to £17,4(31,282, a gain of £402,400. The increase was shared by all the banks, except two, and the National Bank ol New Zealand accounts for £348,080 ol the increase. The position of the banks in respect to free deposits is shown in the following table: —

A further slight increase is shown in the volume of fixed deposits. Two banks record slight decreases, while the Bank of New Zealand accounts foi £092,992 of the net increase, as is shown in tlie following table:—

The growth of fixed deposits lias been fairly substantial in recent years DECREASE IN ADVANCES. As compared with a year ago, advances at £47,934,828 have decreased by £1,584,803. the figures for the t.\vc purely New Zealand hanks account foi over £.1,000,000 of the decrease, while one bank shows a slight, increase. The position in respect of advances compares as follows: —

There has been a 'marked decline in discounts, those for the last quarter being little more than one-half (it those for the March quarter of 1931. A most instructive comparison is that of deposits with advances, as it is the relationship of these two factors that governs to a great extent the supply of funds with the banks. These compare as follow for the March quarter for the last seven years:—

The shares of the individual banks in the deposits and advances for the quarter ended March 3J, 1933, are as folloW: —

The figures show that, with the exception of the Bank ,of Now South Wales and the Bank of Australasia, all the banks have an excess of deposits over advances. A notable feature disclosed by the returns is that the banks’ holdings of Government securities have risen during the .12 months from £0,024,320 to £9,259,900, an increase of £3,235,580, but they are £843,158 less than for the December quarter of 1932. The figures' covering riOtcs in circulation and the banks’ holdings of coin and bullion compare ris follow for the last six years:-

It will be seen that the note circulation, with an increase of £129,796, is higher than it has been sinee 1930. A further contraction in coin and bullion of nearly £1,385,000 in 12 months makes the total lower than for years, and well over £2,500,000 less than six years ago.

March, March, 15)32. 15)33. Bank. £ £ New Zealand .. 8,153*183 8,173,'514 Union .. 1,959,8(30 2,017,053 N.S. Wales .. 1,803,363 .1,871,57! Australasia .. 1.559,740 1.543,187 National .. 2,771.5)53 3,120,63! Commercial 750,414. 735,312 16,908,822 17,4(51,282

March, March, 1932. 1933. Bank. £ £ New Zealand .. 17,107,123 17,800,417 Union .. 3,793,40(1 3,799.95, N.S. Wales .. 3,918,6(59 .. 8,004,397 3,'898,68(. Australasia. 2,999,14! National .. 5,981,67(5 6,016,549 Commercial 660,516 694,259 31,466,289 85,208,98;

Bunk. March ([!'. March qr. 1932. 1933. £ £ New Zealand .. 22,859,9413 22,03-1,012 .. 5.94,1,057 5,028,327 Union N.S. Wales .. 5,903,779 5,795.289 Australasia .. 4,734,807 1,023,341 National ., 8,708,400 8,473,074 Commercial .. 4,308,042 .1,379,082 49,519,631 47,934,828

March. Deposits. Advances. quarter. £ £ 1927 45,528,813 50,800,80.8 1028 49,958,295 46,010,370 1920 55,345,495 46,359,744 1930 54,003,240 53,676,779 54,332,234 1931 51,251,939 1932 51,465,111 50,232,337 1933 52,670.270 48,500,274

Total. Total • deposits, advances. Bank. £ £ New Zealand .. 23,973,931 22,339,598 Union .. 3,81(5,982 5,045,317 N.S. Wales .. 3,770.2(53 5,879,253 Australasia .. 4,542.333 4,705,270 National .. 9,4 37,1.88 8,530,88(5 Commercial .. 1,429,571 1,399,930 52,070,270 48,500,274

March Notes in circulation. Gold coin and bullion. quarter. £ £ 1928 6,376,668 7,867,459 1929 6,370,694 7,263,361 1930 6,417,038 «,648,838 1931 5,802>261 6,955,422 1932 6,875,025 6,598,701 1933 6,004,"821 5.213,755