BANKING RETURNS

Wanganui Chronicle, Volume 72, Issue 90, 16 April 1929, Page 6

BANKING RETURNS

FURTHER DEPOSITS INCREASE MONEY NOT BEING USED f The financial position of the Dorninion, as revealed by the banking returns for the period ending March 31, 1929 is sound. Fixed deposits have increased, maintaining the movement which [has been continuous since 1925. Free deposits have also advanced ovjer last year, but still remain under the 1926 level. The result is that the banks are receiving money aster than they can find a use for it. The deposits (all classes) for March quarter last year, and this, are as* follows: — 1928 1929 Increase 52,336,872 58,209,934 5,87' ,063 Fixed Deposits. The chief contribution to this increase in deposits is to be found in the fixed deposits. These show an increase from £25,476,144 at March 1928, to £29,608,752 for the last quarter. The year’s increase, therefore, amounts to £i,162,608 and the increase since 1925 amounts to £9,477,041, the annual totals being as follows:

Free Deposits. Free deposits have not increased to the same extent as fixed deposits which is, of course, to be expected. Last year deposits on current account totalled £24,482,151. This year they increase by £1.254,592 to £25,7."6,743. Thq movement of free deposits for the last five years is revealed by thu following table:— Free

Free deposits are, despite partial recovery, £4,029,774 below the 1925 total. Total Deposits. The total of deposits both fixed and free, now stand at the very high level of £55,345,495, which exceeds the 1928 ■level by £5,360,200, of which more than three times as much money was placed on fixed deposit and remained for use free from bank control. Advances. In 1926 the bankers* advances exceeded fixed and free deposits by £982,662. In 1927 the position became worse, the exec 4 of advances amounted to £5,271,996. *>y the Alarch quartier, 1928, the position had been, rectified, tho deposits again exceeding the advances by £3,887,925. This year a further leap forward in deposits excess is recorded, the current excess over advances amounting to £8,985,751. The banks, therefore, have ample funds for investment. The total amount including bills discounted advan»'d by the banks, however, is £46,359,774. This is a high total, it having been exceeded only in four of the last eleven years, namely in the slump of 1921 and 1922, and again in thq depression of 1926 and 1927. Spending Power. The note circulation having contracted by £5,774 this sum has to be deducted from the £1,254,592 free deposits increase. Thus the spending power of the public has increased by £1,248,820 over the Alarch quarter of last year.

1925 Fixed Deposits £ 20,131,711 1926 20,436,629 1927 21',088,034 1928 25,476,144 1929 29,608,752

March. quarter. 1925 Deposits. £ 29 765 517 1926 26,865,851 1927 24,440,778 1928 24,482.151 1929 25,736,743