BANKING RETURNS.

Waikato Times, Volume 106, Issue 17839, 11 October 1929, Page 8

BANKING RETURNS.

ADVANCES INCREASE

FIXED DEPOSITS ALSO RISE. FIGURES FOR SEPTEMBER QUARTER WELLINGTON, Thursday. The notable features of the bank statements for the September quarter, in comparison with those for the third quarter of last year, are a substantial increase in deposits, mainly in the llxed class, and a much greater increase in advances, with the result tiiat the excess of private deposits over advances has been reduced from £7,476,594 to £5,030,634. Both deposits and advances are at record figures for the September quarter. It is noteworthy that as compared with the uime returns, deposits are lower by £2,483,2 68, while advances have increased by £2.100."8i. The second quarter showed the post-war record excess of deposits, £9,644,683. Details of the three classes of deposits for the September quarter c-f this and last year are as follow: Sept. 1928 Sept. 1929 Govt. £1,628,6.87 £2,799, tiO Free .. 23,344,954 23,968,295 Fixed .. 29,251.004 30,000,331 Totals £54,224,705 £57,367,7 )6 The gain in the demand deposits is normal, but the increase in the time deposits is most marked. Distribution of Deposits. Dealing with the free deposits held by the several banks as compared with the September quarter of last year, il is noted that all except the Commercial Bank show increases. There was also a rather large increase in fixed deposits, in which all the banks shared except the Union Bank. Details are as follow:

Totals .. £29,251,064 £30,600,331 The aggregates of the free and the fixed deposits are the highest in any September quarter in the last five years, as appears from the following summary:— .

The big increase in the fixed deposits may revive discussion of “idle money.” However, as Professor Gustav Cassel has recently observed, the view that such money will lie idle pending its definite employment by its owner is entirely erroneuus, since the bank uses it to increase it own assets, whether in the form of loans or securities. Movement of Advances.

The advances show an increase of over £4,500,000 in some parts due to the increase in imports. All the banks shared in the increase, as shown below ;

The discounts have fallen by £177,582 from £1,171,970 to £994,388. The discounts and advances together amount to £49,537,992, which falls short of the aggregate of the free and fixed deposits by £5,030,634. The banks were overloaded with funds a year ago, but this year they have managed to find investment with the public for a great deal more of their funds. Taking the September quarter of each of the last five years the excess of deposits over advances is disclosed in the table below:— September

While the deposits have increased by £1,972,608, as compared with a year ago, the advances and discounts together have expanded by £4,418,568. The note circulation shows a slight increase as compared with the corresponding quarter of last year, but coin and bullion have contracted. The latter cover the note circulation with a million to spare, the average circulation having been £6,272, 353, as against £6,166,287 last year, while the metal reserve has declined from £7,350,045 to £7,109,873.

Bank. Free Deposits. Sept. 1928 Sept. 1929 N. Zealand . £10,903,927 £11,284,524 Union . 2,565,702 2,642,046 N.S. Wales 2,528,196 2,598,544 Australasia 2,268,109 2,313,767 National . 4,060,371 4,121,387 Commercial 1,018,649 1,008,027 Totals . . £23,344,954 £23,968,295

Bank. Fixed Deposits, Sept. 1928 Sept. 1929 N. Zealand . £ 1 4,272,805 £15,224,528 Union . 3,355,033 3,286,103 N.S. Wales 3,80-4,939 4,072,196 Australasia 2,663,708 2,822,955 National . 4,472,080 4,518,422 Commercial 622,339 676,127

Sept. ij * i • Fixed. Quarter Free. 1925 £26,811,762 £20,941,663 192 6 24,907,961 21,074,892 1927 21,815,504 23,398,246 1928 23,344,954 29,251,064 1929 23,968,295 30,600,331

Dank. Sept. 1928 Sept. 1929 N. Zealand . £18,09(3,372 £20,738,919 Union 5,106,038 5,762,106 N.S. Wales . 5,622,807 5,903,411 Australasia . 4, G 64,590 4,975,432 National 8,435,788 9,519,940 Commercial 1,421,859 1,643,736 Totals .. £43,947,454 £48,543,604

Quarter Deposits Advances. 1925 £ ii,i aJ,-i2o £44,975,360 1926 45,982,853 48,323,946 1927 45,213,750 48,815,231 1928' . 52,596,018 45,119,424 1929 54,568,626 49,537,992