BACKING RETURNS.

Press, Volume LIII, Issue 15874, 13 April 1917, Page 6

BACKING RETURNS.

« (FROM a SPECIAI. CORBESroXDEXT.) WELLINGTON, April 12. The Banking Returns for the first quarter of the current year are available, and tho figures are interesting from tho fact that, whilo savings are being mado, thero is an increasing tendency to borrow from tho bqnks. Thus whilo the fixed and free deposits together show in tho aggregate an increase of £'3,052,157 as compared with tho corresponding quarter of 1916, tho increase in the advances and discounts amounts to £3,961,035. That shows that tho amount borrowed from the banks exceeded tho "amount deposited with the banks by the sum of .£878,751. It is hard to account for this movement in view of tho fact that rconev is rolling into tho country by tho high prices ruling for produce. "While the transport problem aifeets shipments from this end, there is no such difficulty with rospect to imports, as the vessels coming from the United Kingdom must fill up with whatever merchandise freight may bo available. The probability is that merchants and others have to find a greater volume of credit to pay for the merchandise which is steadily mounting upwards, and perhaps, too. during the past quarter they were able to import a larger volume of merchandise than was the case in the March quarter of last year. The movement is rather favourable than otherwise, for it proves that credit can be profitably employed just now. Tho position with respect to desposits is disclosed in the table appended:— Mar.. 1916. Mar. .1917. Inc. £ £ £ Government deposits 4,855,939 7,357.119 2,501.180 Free deposits 19,091,949 20,970,702 1,878.753 Fised deposits 12,182,104 13,385,838 1,203,734 Totals .. 36,123,992 41.713,659 5.583,567 The expansion in the Government deposits is a feature of this table. For the March quarter of 1915 the amount stood at £3,256,715. so that the total has more than doubled in two years. A large part of tho total would probably represent trust funds, the New Zealand Government now handling large amounts on behalf of the Imperial authorities in purchasing produce in the Dominion. The increaso in tho free deposits is moderate, but all the banks shared in the increase, the Bank of New Zealand showing an expansion of £944,768, the Union Bank £248,619, Bank of New South Wales £183,540, Bank of Australasia £292,029, National Bank £167.213. and Commercial Bank £42,584. The fixed deposits show a relatively large increase, and the figures of each bank are appended:—

The Commercial Bank shows an. increase of nearly 50 per cent., and thfc) Bank of New South. Wales also shows to advantage. Taking the fixed and free deposits for a series of years, we get the following table: —

The growth in the free deposits is smaller than in 1916 and 1915. Ooming now to the advances, as already stated, there is an increase compared with a year ago of £3,895,830, anl all the ibanks, except the Union Bank, shared in the expansion, as the 'table appended "will show: — Bank. Mar., 191 G. Mar., 1917. £ £ £ N. Zealand 9,009,293 11,711,691 2,702,398 inc. Union .. 4,244,825 4,160,071 84,754 dec. N.S. "Walea 2,760,810 3,166,162 405,352 inc. Auetralaeia 2,834,765 2,915,278 80,623 inc. National .. 3,274,617 3,962,278 687,661 inc. Commercial 121,937 226,587 104,650 inc. Totals 22,246,237 26,142,067 3,695,830 inc. The discounts show the moderate increase of £65,208, for -which four of tho institutions ar« responsible. The Union Bank and Bank of Australasia exhibit decreases, tho amount for the former being £17,679, and for the latter £10.437. Taking the discounts and advances for five years, we get the following:— Maich Quarter. Discounts. Advances. Totals. 1913 .. 1,967,351 21,025,105 22,992,556 1914 .: 2,017,107 21,649,643 23,666,750 1915 .. 1,634.418 22,106,144 23,740,662 1916 .. 1,187,655 22,246,237 23,733,892 1917 .. 1,552,863 26,142,067 27,694,930 The increase under both heads for the year totals £3,961,038. Comparing the deposits and advances we have the following March Excess of Quarter. Deposits. Advances. Deposits. £ £ £ 1913 .. 23,887.256 22,992,456 894,800 1914 .. 21,030,250 23,666,759 363,500 1915 .. 26,829,239 23,740,562 3,088,677 1910 31,274,053 23,723,892 7,540,161 1917 .. 34,350,5-10 27,694,930 6,661,610 Tho excess is not so large this ycjjr as it was last year, but it is still rather b'2. Now wo come to tho note circulation and tho coin and bullion. There is an increase in the circulation as compared with last year of £1,465.898, equal to over 45 per cent. The figures for the March quarters compare as under: — March. Not© Coin Quarter. Circulation. and Bullion. £ £ 1913 .. 1,703,318 5,032,155 1914 .. 1,666,939 5,317,861 1915 .. 2.639,55> 6,420,559 1916 .. 3.171,553 7.120,854 1917 .. 4,687,451 7,663,635 The increaso in tho coin and bullion for tho year totals £742,781, which is a large enough ratio for the increased, circulation. Taking the figures as a whole, it is obvious that there is an abundanco of capital in the Dominion, 'and as the State will soon be making a call on the community for a substantial war loan, it is as well that the financial situation is as good as. it is.

Bank. Mot., 1916. Mar., 1917. Ino. £ £ £ New Zealand .. G,120,355 6,711,191 ' 590,836 Union .. 1,553,656 1,588,728 35,072 N. S. "Walea .. 1,864,252 2,192,422 328,170 Australasia .. 774,847 926,481 151,634 National .. 1,836,711 1,917,467 80,756 Commercial .. 33,283 49,549 16,266 Totals .. 12,182,104 13,385,838 1,203,734

March -Free Filed Total Quarter. Deposits. Deoosits. Deposits. £ £ £ 1913 .. 13,460,530 10,426,726 . 23,887,256 1914 .. 13,475,771 10,554,479 24,030,250 1915 .. 15,958,732 10,870,507 36,820,239 1916 .. 19,091,919 12,182,104 31,274,053 1917 .. 20,970,702 13,885,828 34,356,540