The Press WEDNESDAY, April 13, 1921. The Banking Returns

Press, Volume LVII, Issue 17118, 13 April 1921, Page 6

The Press WEDNESDAY, April 13, 1921. The Banking Returns

We pnnt the customary quarterly" analysis of the banking returns supplied by our financial correspondent in Wellington. There has been some spec- - illation as to What would bo ievoaled by " v »tho returns, but we do not suppose that Hhere will bo muoh real surpiise at tho. -positioil disclosed, since it is inevitable Dhat the financial stringency of the present time should .bo reflected in the bank figutss. In the years before the war these returns used to bo examined front' several point* of view which are nowadays' hardly worth taking; but nowadays the point to which attention 'is ifliiefly directed 'is the relation of deposits to advances, tfritil about nine '''months "ago this relation was very satisfacUwy. Compared with the pre-war -totals, advances (including discounts. i' ty*fgrown/** Mrßeauehamp remarked! \ 4t the meeting of'the Bank of New last Dune, only Moderately." deposits, l on the other hand, had in- * leased} enormously. X reasonable vol-, ' Timfof- importation, combined<wit«i huge ;'reborns had built up a, 3 gpat volume of«oredits. Since Juno and progressive change has * as wUI be made .dear by tfcfcfoiiowirig table, with wlncn wo may *■*■ rafo&ment. our correspondent's analy- , . .Z*?y -v. - *•- 4|g Imnm**. ,t t J **- <. ._, sf?H" * and Eree $• **, -si* Diaoounfe. Deposits. *£H&*l«D * 32,042,042' 5Q,&|5,091 » »,t1929 t . , 34,769 s§l, 64,698,093 W» 49,456,893 's' .hetjjeen the, fibres for J J of this year"and the last year is most fan--f i>6Jg«n|» h W« actually shrunk I f yet advances and , million*. Normally) advances make deposits, but shrinkage in deposits and a in 'advances; A great _1 volume 6f the advances, of course, is ]; aocqunte^,'for by. the necessities of im / t v for. quarter last year refleoted ,: that the import* in 1919 were |<£t>b;67l,439 and the-exports £68,904,384, returns'for the Maroh. quarter I jejbr 'are -much, what one might 'i a reversal of that trade ■ siiuaMon/"'the. %v 4%ports falling to £4j5i592,294 and the imports leaping up And during tho cur rant ot least during January '3> and of imports \ has, shown "no abatement; although, of fi i course, a sharp fall- will be recorded soon. These excessive imports "'.shave; absorbed muoh of the ciedit at the '?; tUJjposal of the bonks. " Our financial ?<sbrresporident emphasises a point which *? deserves emphasis, namely, the ample s reply that is given by the figures to * thef complaints which everyone has ~. concerning the supposed harshness r'Jofithe Banks in dealing with clients in rneed ofi«upport. When tlhe advances have increased,* as • compared with a . vyeir nearly 20 millions sterling /it.cannot be fairly, denied that the "'''Banks have gone*to great lengths in ,-' meeting the demands of borrowers. The general lesson of the returns is so , plain that it hardly requires to be pointed out. JHier© is no artificial way '" out of a very troublesome financial and Seconomio'situation. ' Recovery is pos"VaßbTeonly through' continued, produo- ' &ii''amlA constant and faithful abaten- ' toon from needless expenditure and cons' yjumgiion and from all activity that ia ' "really,speculative. The Government can'd6 i flO'mething'iib v pTevent» collapse, r 'but the resources'of legislation are J 1 limited: situation has been " -vcausM largely* by unwisdont of one kiud |imd another on the pari of the publi-; ' prudence on the public'e part can