BANK STATEMENTS

Wanganui Chronicle, Volume 75, Issue 245, 17 October 1932, Page 10

BANK STATEMENTS

ADJUSTMENTS COMPLETE SOUND POSITION HELD DEPOSITS EXCEED ADVANCES RISE IN NOTE CIRCULATION The average .statements of the com mcrcial banks for the third quarter of the year show movements that might have been expected. The free deposits or current account balances, compared with the corresponding quarter of last year, show a further shrinkage, while the fixed deposits have expanded. Both discounts and advances arc appreciably lower, but singularly enough the note circulation shows a slight increase. Dealing first with the free deposits, the aggregate amounts to £15,370,1 »2, as compared with £16,590,661 in the September quarter of last year, a de crease of £1,220,509, which is rather substantial. The figures of each bank compare as follows: — Sept., Sept.,

Totals . 16,590,661 15,370,152: 1,220,509 All the banks have lost in free deposits, and the losses are practically proportionate. The fixed deposits compare as follows:

*Decrease Movements of Deposits The increase totals £1,158,458, of which the share of the Bank of New Zealand is nearly a million. The Union Bank and the Bank, of New South Wales are the only institutions to show decreases in the fixed deposits. The aggregates of both classes of deposits over a scries of years arc:— September Quarter Free Fixed Totals £ £ £ 1928 . 23,344 954 29,251,064 52,596,018 1929 . 23.968,295 30,600,33154,568,626 1930 . 20,803,171 31,747,268 52,550,439 1931 . 16,590,661 34,180,556 50,771.217 1932 . 15,370,152 35,339,014 50,709,166 The aggregate owing by the banks to their customers in respect of free and fixed deposits is only slightly less than it was a year ago. The advances show a shrinkage, but it is not very marked. The advances of each bank compared with a year ago are shown in th? table appended:—

. Totals .. 50,224,004 49,391,474 832,530 The shrinkage in the advances is £832,530, in which all the banks shared. Tho volume of the bills discounted again shows a shrinkage, tho total for the past quarter being 583,741, compared with £709,553 in the corresponding quarter of last year, and £1,107,061 in the September quarter of 1930. The discounts in the past quarter were little more than half of what they were two years ago, which would seem to indicate that trade is now being done on a cash basis more than in past years. Debit and Credit Relations The aggregates of the free and fixed deposits on the one hand, and the advances and discounts on the other show the debit and credit relations of the banks with their customers. These totals for the September quarter in recent years and the last four quarters compare as follows:

A year ago the banks were heavily drawn upon for accommodation, but now it Would appear that adjustments have been made, and the relative positions of customers and banks are normal. The banks have managed the situation well and have it now incomplete control. Shares in Deposits and Advances The position of each bank in respect of deposits and advances during the past quarter is shown in the following table:— Bank Deposits. Advances. Excess. N.Z. . .. 25,055,176 23,115,146 1,940,030 Union .. 5,417,980 5,792,743 *374.763 N.B.W. . 5,520,668 5,980,630 *459,962 Aust’asia. 4,416,114 4,820,470 *404.356 National 8,898,287 8,891,224 7,063 Com’J. .. 1.400,941 1,375,002 25,939 Totals . 50,709,166 49,975,215 733.951 *Exi-ess of advances. The note circulation shows an in crease of £32.5,282 compared with a year ago, which indicates that people are now carrying in their pockets more currency than last year. The reserves of coin and bullion show a very sharp decline compared with last vear. The figures for the past five years are as follows: - - Quarter Note issue Reserves £ £ 1928 6.166,2.87 7.350,0-15 1929 6,272,353 7.109,873 192.0 6,02.9,175 6,82.8,877 192,1 5.5.8 1.512 6,942,332 1932 5,919,825 5,605,426 The coin and bullion has decreased by £1,336.906 since last year, and it

is evident that some of the coin gold has been exported. It may be said that the banking position is normal. The first necessary adjustments appear to have been made, and if the price level does not go lower there will be no financial disturbances. If it rises further, there will be very great relief.

Bank ll»3i 1932 Decrease £ £ £ y.Z 7,879,211 7,364,360 514,851 Union - .. 1.8(12,313 1,607,978194,3.35 N.S.W. .. 1,744,779 1,634,551 110,228 Australasia 1,576,502 1,413,083 163,419 National . 2,826,303 2,641,797 184,566 Commercial 761,493 708,383 53,110

Sept., Sept, Bank .1 931 1932 1ncrease £ x £ n.z. . .. 6.-810,878 17,690,816 840.938 Union 3,830,211 3,810,002 *20,209 N.S.W. .. 4,060,930 3.886,117 *174,813 Australasia 2.941,370 3,003,031 61,661 National 5,840,242 6,256,490 416,248 Commercial 666,925 692,558 25,6o2 Totals . 4,180.556 3 5,339,014 1,158,458

Sept., Sept., Bank .193 1 1932 Decrease X £ £ N.Z. . .. 23,218,051 22,769,112 448,939 Union . .. 5,849,588 5,774,332 75,256 N.S.W. .. 6,023,844 5,899,130 124,714 Australasia 4,809,104 4,750,832 58,272 National . 8.887,922 8,844,373 43,549 Commercial 1,435,495 1,353,695 81,800

Deposits. Advances Excess. Sept., 1927 £45,213,750 £48,315,231 £3,601,481* Sept., 1928 52,596,018 45,119,424 7,476,594 Sept., 1929 54,568,626 49,537,992 5,030,634 Sept., 1930 52,550,439 52,506,901 43,538 Sept., 1931 50,771,217 50,933,557 162,340* Dec., 1931 50,781,033 51,016,781 235,748 Mar., 1932 51,465,111 50,232,337 1,232,774 June, 1932 52,216,782 50,581,395 1,635,387 Sept., 1932 50,709,166 49.975,215 733,951 * Excess of advances.