Taranaki herald. SATURDAY, JULY 20, 1907. THE BANK RETURNS.

Taranaki Herald, Volume LIV, Issue 13480, 20 July 1907, Page 4

Taranaki herald. SATURDAY, JULY 20, 1907. THE BANK RETURNS.

The banking returns for the June quarter to reflect a very healthy condition of thin #9 in New Zealand. The free deposits in the five banks doing business in the colony show an increase of £870,357, which following upon a very large increase in the previous quarter, bears evidence of the splendid season pastoralists have experience and the good prices realised for their wool and other produce.. The fixed deposits again show a small falling oft', due, no doubt, to the superior attractions offered by the Post Office Savings Bank. During the fall of the year the, banks are not called uppn for a great deal of accommodation by their customers, who are accumulating rather than spending; therefore, the? competition of the Post Office having Baiifk' has not been severely felt. As 7 £b.e time approaches for large , advances to be sought for, the banks -may find it necessary to hold but greater inducements to depositors, and this may be followed by a corresponding stiffening of rates to- borrowers. Advances increased during the past, quarter from £15,551,547 to £16,033,352, which is a healthy sign of activity. Discounts showed a slight falling off, while the note circulation was a little larger, and the banks held £153,159 worth more 4 coin and bullion. A comparison made by the New Zealand Times. of ike returns for the past qoiajtet with those of corresponding quarters in previous years furnishes interesting evidence of tne expansion of trade in the colony. Jn 1903, for instance, the aggregate assets and liabilities of the five banks at June 30th was £40,765,117; while at the end of last month they totalled £52,150,214. The advances and discounts expanded in the same period from £13,210,352 to £18,020,514, and the deposits from £17,746,609 to £21,842,964. The increase in advances, it will be noted, is greater than that of deposits, but it must be remembered that the Post Office Savings Bank deposits liave increased very largely during the period. This is reflected in the figures relating to the excess of deposits over advances, which in 1903 was £4,536,257, while now it is only £3,822,450. The note circulation, which was £1,501,247 in June, 1903, is now £1,694,328— a good indication of activity, of trade. The extent to which the banks have strengthened their position to meet the growth of trade is shown by the increase of coin and bullion from £3,598,245 in 1903 to £4,755,808 tjiis year. Money is an exceedingly sensitive barometer, which, may generally be depended upon to give timely warning of any approaching depression or disturbing influence. At present it remains at " set fair," and thus confirms other signs that New Zealand has not yet begun to experience any ebb of the tide of prosperity which has been flowing so long.