BALANCE OF TRADE.

Press, Volume LXIII, Issue 18897, 12 January 1927, Page 10

BALANCE OF TRADE.

BANKING RETURNS. EXCESS OF IMPORTS. [THE PBESS .Special Service.] WELLINGTON, January 11 The banking averages for the December quarter reflect the trading conditions. Although the trade returns for last year are not yet available, they are bound to disclose an adverse balance, for the figures for the eleven months showed an excess of imports over exports amounting to £3,857,590. The banking returns show that the deposits have declined by over £3,C00,C00, while the advances increased by £2,700,000. Taking the three classes of deposits, the figures compare with those for the December quarter of 1925 as under:

As the free deposits were less by £2,058,450 and the note circulation lower by £189,970/ the purchasing power of the community as compared with twelvo months: ago is £2,248,420 less, and that must- make a . difference to domestic trade. It cannot' be said that the economic conditions are as satisfactory as' they were a year ago. Still, there is no occasion . for. any for with ordinary care the position will soon be righted. There is a tendency, for the imports to shrink, and if .that,is continued the balance of trade will soon be in our favour. DAIRY PRODUCE. The Xaliona.l Mortgage ar.d Agency Co. has received the following cabkd advico from London:—'.'Butter: ' The market is, quiet, at 172s to 1745, and stored 1665. Cheese ia'in fair 'demand.' WJite 93s to 91s, coloured 94s to Sss." EGG AUCTION. , Messrs Harris Bros., Ltd., report =thai the usual weekly auction sale'of "Feather Brand" guaranteed fresh eggs.was held yesterday afternoon. The following prices were realised:—Her. eggs, first grade over), Is 7Jd; hen eggs, second grade (unaat 2az), Is '6Jd. —7

Dec. Dec. Inc. Dec. 1925. 1920. Deposits. £ £ £ £ Govt. 3,696,534 2,383,149 — 1,313,385 Free 25,189,553 23,131,103 — 2,053,456 .Fixed 20,840,809 21,105,547 264,738 — Totals 49,726,396 46,619,799 — 3,107,097 The fixed deposits show the small increase of £264,738, but the other two classes of doposits are -substantially less than in the corresponding quarter of 1925. The shrinkage in the free deposits or current. account balances is rather large, and is the first contraction to be noted since 1922. Except for a small gain of £19,955 shown by the Commercial Bank, all the' in-stitutions-lost heavily in this ciass of deposits ns .-will be seen by the table appended: Dec. Dec. Inc. Dec. 1925. 1926. Banks. £ £ £ £ N.Z. 11,692,254 10,813,196 — 879,058 Union 2,865,793 2,672,047 ' — ir.3,746 N.S.W. 2,693,8-23 2,366,023 — ■ 327,800 As'asia 2,466,310 2,130,751 — 335,559 Nat'nal 4,520,903 4,198,661 — 322,242 Comm'l. 930,470 1,050,425 19,935 — Totals 26,189,553 23,131,103 — 2,058,450 This adverse showing is no doubt due to the excess of imports, necessitating the transfer of credits beyond the Dominion. The fixed deposits exhibit the smjill increase of £264,738, a gain being secured by the Bank of New Zealand and the Commercial Bank, the other institutions showing decreases, as will be seen in the table following:— Dec. Dec. Inc. Dec. 1925. 1926. Banks £ £ £ £ N.Z. 10,467,817 10,854,208 386,391 — Union '2,397,231 2,375*,4S7 — 21,744 N.S:W. 2,779,896 2,754,073 — 25,823 As'asia 1,833;701 1,704,644 — 129,057 Nat'n'l 3,073;6S9 3,044,276 — 29,413 Comm. 288,475 372,859 84,384 — Totals 20,840,809 21,105,517 261,738 — Taking the aggregates of the free and fixed deposits for the December quarter of each of the past five years, the figures compare as under:— : Free. Fixed Total. 1922 23,542,867 17,561,352 41,104,419 1923 24,261,042 18,569,165 42,830,177 1924 24,776,888 1,9,899,611 44,676,499 1925 25,189,553 .20,840,809 46,030,362 1926 23,r31.103 .21,015,547' 44,236,650 The advances '. have increased by £2,769,369, and. all the banks show increases, except the Bank of . Australasia, which reduced advances by £24,775. This is-.shown in the table appended :— Dec. Dec. Inc. Dec. 1925. 1926. £ ■ , £ £ £ X.Z. 20,306,018 21,720,724 1,414,606 — Union 5,818,951 6,26C,63-1 • 447,860 — N.S.W. 5,746,332 6,329,074 582,742 —■ Aust'ia. 5,107,659 5,082,884 ' — 24,775 Nat'l. 8,442,402 8,646,036 203,634 — Comcl. 1,205,708 1,351,090 145,382 — Totals 46,627,070 49;396,439 2,769,369 — • The discounts show a contraction of £50,585, the-totals being £1,876,772, against £1,927,357. Increases are shown by the Union Bank, £5617; Bank of New South Wales. £21,643; and-the Commercial Bank, £6674. The decreases are:—Bank' of. New Zealand, £47,805; Bank of Australasia, 229,099; and National Bank, £7615. The aggregates of the advances and discounts for the December quarter for each of the past five, years show as under:— Dec. . . - , quar. Advances. Discounts. Total. 1922. .. 41;770,678 1,660,338 43,431,016 1923 .. 44,427,858 10,801,536 46,229,394 1924 .. 44,227,557 1,706,897 45,936,454 1925 .. 46,627,070 1,927,357 48,554,427 1926 ..49,396,439.-1,876,772 51,273,211 It is usual for the advances to exceed the deposits in the December quarter. At all events that has been the case for the past seven years. This will be seen by the figures given in'the table below:— D.cc. .'.""' Excess of quar. Deposits. Advances. Advances. £ £ £ 1922 .. 41,104,419 43,431,016 2,326,597 1923 ..'4-2,830,177 46,229,394 3,399,217 1924 ..'• 44,676,499 45,936,454 1,259,955 1925 ..46,030,362.48,554,427 2,524,065 1926 ... 44,236,650 51,273,211 7,035,561 The excess of advances in the last quarter is very large and very significant. - < The'note-circulation in the past quarter • averaged ; £6,757,707, or £189;970 :less' than an the corresponding quarter'of 1925, while coin and bullion showed'an increase of £69,765. The aggregates are as follows! — Dec. • ' Note Coin and qu'ar. Circulation. • Bullion. , £■ . £ ■ ■ 1922 : ; .. .... 6,073,908 7,884,110 1923 , .. . .i 6,643,900 7,867,841 1924 .. .. 6,749,595 7,722,470 1923- > ..- t .. 6,947,677 .7,740,219 192G ' ' '.. .. 6,757,707 7,809,984