BANK STATEMENTS

Taranaki Daily News, 12 July 1929, Page 18

BANK STATEMENTS

FUNDS AGAIN AUGMENTED DEPOSITS AT NEW RECORDS. LARGEST IN POST-WAR PERIOD. Wellington, July 9. The bank statements for the June quarter give indications of a gradual return of confidence. There is still a tendency for the time deposits to increase, but, on the other hand, more money is , being held at the banks at call, showing that the owners anticipate using these funds in ways that will yield profits. All classes of deposits show increases, and that is to be expected in the second quarter of the year, for by then the season’s produce is realised and practically the whole of the returns in hand. The movements in the three classes of deposits compared with the June quarter of last year are as follow:— June, 19213 June, 1929 Increase. £ £ £ Govt .. 1,950,075 2,794,255 838,180 Free .. 25,35'7,145 26,810,881 1,453,736 Fixed .. 2'7,589,988 30,241,013 2,651,025 Toitals 54,903,208 59,846,149 4,942,941 While the demand deposits have increased by £1,453,730, the time deposits have expanded by £2,651,025, or by £1,200,000 more than the free deposits. Compared with the , March quarter of this year, however, the free deposits show an increase of £1,074,138, while the increase in the fixed deposists is only £632,263. DISTRIBUTION OF DEPOSITS. Of the increase in the demand deposits during the year, all the banks obtained a share, the Union Bank and the Bank of New South Wales showing the highest relative gains. The figures of the several banks are shown below:— FREE DEPOSITS.

The increase in fixed deposits of £2,651,025 follows an increase in 192728 of £5,840,884, the contrast showing that the tendency is for less money to be tied up in fixed deposits. The amounts held by the several banks are as. under: — FIXED DEPOSITS.

The aggregates of the free and fixed deposits for the June quarters in the last five years compare as follows: — June

posits declined sharply, but there has been a steady increase last year and this year. The fixed deposits have grown rapidly since 1926. MOVEMENT OF ADVANCES. The advances, which contracted considerably in 1928 as compared with 1927 this year show an increase of about 5 per cent., which must be very welcome to the banks. All the institutions shared in the increase, as shown in

The discounts at £1,038,427 have declined by £139,027, as compared with last year, but the disgounts have shown this contracting tendency ever since 1926. . L It is decidedly encouraging to see increased demands made on the banks for accommodation, for it is an indication of a slow return of confidence. The increase in the advances is, however, very small, and the banks have a plethora of funds, as will be seen from the following table, which shows the relation of the banks to the public as lender and borrower: — June

LARGER PURCHASING POWER. The note circulation for the past quarter was £6,547,872, against £6,432 - 199 in the corresponding quarter of last year. The increase ie small, but it shows that the people are handling more pocket money than a year ago. A good increase is shown in the purchasing power of the community, as represented by the sum of demand deposits and note circulation, which together represent what is available for expenditure. In the past quarter the two items amounted to £33,358,753, which contrasts with £31,789,254 in the corresponding quarter of last year, and £31,328,264 in 1927. This is very encouraging, and justifies hopes that during the balance of the year business will be brighter and more active than in the last two years.

Bank June, 1'938. £ , June, 1929. Increase £ £ N. Z'l'nd 11,966,606 12,654,47'3 6S7,867 Union 2,849,425 3,096,534 247,109 N.S.W. 2,717,036 2,943,045 226,009 Australasia 2,516,731 2,613,216 . 90,515 National 4,3'32,3'68 4,489,440 157,072 Commercial 974,979 1,014,143 39,164 Totals 25,357,145 26,810,8'81 1,453,736

Bank June, 1'928 , June, 1929 Increase ' £ £ £ N. Zealand 13,425,599 14,953,943 1,528,344 Union 3,123,33'9 2,396,510 373,171 N.S.W. 3,63'3,537 4,041,100 407,563 Australasia 2,492,507 2,7'6'2,468 269,961 National » 4,334,46'3 4,435,733 101,265 Commercial 580,538 651,259 70,721 Totals 27,589,988 30,241,013 2,651,025

Quarter . Fra e Fixed Totals 1925 30,497,269 20,866,462 51,463,635 1925 27,594,496 20,674,853 48,269,349 war 24,741,262 21,749,104 46,490,366 1928 25,35'7,145 27,589,988 52,947,133 192© 26,810,8'81 30,241,013 57,051,594 Between 1925 and 1927 the free de-

the table appended: — £ £ £ Bank June, 1'928 , June, 1929 Increase N. Zealand 19,242,87'7 10,757,578 514,701 Union 5,176,203 5,471,437 295,234 N.S.W. 5,620,291 6,704,882 84,591 Australasia 4,434,749 4,654,007 219,258 National 8,422,650 9,199,309 • 776,659 Commercial 1,352,731 1,581,571 228,840 Totals 44,249,501 46,368,784 2,119,283

quarter Deposits Advances Excess 1925 ... 51,463,635 43,935,679 7.527.8G6 1926 48,269,349 418,714,741 445,3927 19217 ,, 46,490,366 59,753,106 4,262,740t 1928 52/947,133 45,426,955 7,520,178 1929 ... 57,051,891 47,407,211 ■{•Excess of advances. 9,644,683