H.—44.

In the first place, the returns for the quarter ended 31st March, 1932, show an excess of deposits over advances of £1,232,774, which is in marked contrast to an excess of advances over deposits of £3,080,295 which was recorded for the quarter ended 31st March, 1931, and which represents an improvement of no less than £4,313,069. Further important features of the returns are, firstly, an increase of £213,172 in deposits, and, secondly, a decrease of £4,099,897 in advances, as compared with the figures for the quarter ended 31st March, 1931. For the quarter under review deposits totalled £51,465,] 11, in comparison with £51,251,939 for the corresponding quarter of 1931. Advances, on the other hand, for the quarter ended 31st March, 1932, amounted to £50,232,337, as compared with £54,332,234, for the first quarter of the preceding year. The relation of deposits to advances for the quarter ended 31st March in each of the past seven years is shown in the following table : —

Deposits consist of two classes—namely, free or non-interest-bearing deposits, and fixed or interestbearing deposits. The relative movements of these two classes for the first quarter of each of the past seven years are shown in the table below.

The steady tendency of free deposits to decline from the high level reached in 1926 is readily seen in the above table, as also is the equally as strong tendency of fixed deposits to increase. Deposits shown above do not include Government deposits, which for the quarter ended 31st March, 1932, amounted to £1,871,774, as compared with £2,889,126 for the corresponding quarter of the previous year. Advances for the January-March quarter of the current year (£50,232,337) comprised ordinary advances aggregating £49,519,631, and notes and bills discounted amounting to £712,706. For the corresponding quarter of 1931 total advances (£54,332,234) consisted of ordinary advances amounting to £53,264,390 and notes and bills discounted amounting to £1,067,844. For the quarter ended 31st March, 1932, there were consequently decreases of £3,744,759 and £355,138 in ordinary advances and in notes and bills discounted respectively. The average notes in circulation for the quarter ended 31st March, 1932, amounted to £5,875,025, as compared with £5,802,262 for the corresponding period of 1931, an increase of £72,763. Coin and bullion, on the other hand, showed a reduction of £356,721, the total being £6,598,701, as compared with £6,955,422 for the first quarter of 1931. Trade with the United Kingdom. Consequent upon the fall in the prices of our principal exportable products, the value of our export trade with the United Kingdom naturally showed a substantial reduction in 1931 as compared with the preceding year. Exports last year were valued at £30,940,654 as against £36,015,303 in 1930, a reduction of £5,074,649. The value of our imports from the United Kingdom in 1931 also showed a substantial recession, the total being £12,192,649, as compared with £20,333,986 for 1930, a reduction of £8,141,337.

5

Excess of Quarter ended 31st March, Deposits. Advances. '— : Deposits. | Advances. £ £ £ £ 1926 .. .. .. .. 47,302,480 ! 48,285,142 .. 982,662 1927 .. .. .. .. 45,528,812 50,800,808 .. 5,271,996 1928 .. .. .. .. 49,958,295 46,070,370 3,887,925 1929 .. .. .. .. 55,345,495 46,359,744 8,985,751 1930 .. 54,003,241 53,676,778 326,463 1931 .. .. .. .. 51,251,939 54,332,234 .. 3,080,295 1932 .. .. .. .. 51,465,111 50,232,337 1,232,774

Quarter ended 31st March, I Tree Deposits. J Fixed Deposits. ' Total. £ £ £ 1926 .. .. .. 26,865,851 20,436,629 47,302,480 1927 .. .. .. 24,440,778 21,088,034 45,528,812 1928 .. .. .. 24,482,151 25,476,144 49,958,295 1929 .. .. .. 25,736,743 29,608,752 55,345,495 1930 .. .. .. 23,905,822 30,097,419 54,003,241 1931 .. .. .. 18,329,853 32,922,086 51,251,939 1932 .. .. .. 16,998,822 34,466,289 61,465,111