The Dominion. THURSDAY, APRIL 15, 1909. BANKING RETURNS.

Dominion, Volume 2, Issue 482, 15 April 1909, Page 4

The Dominion. THURSDAY, APRIL 15, 1909. BANKING RETURNS.

». ■ The banking returns for the first quarter of the year exhibit some special and unusual features. The free deposits or current account balances show the very substantial decrease of £1,433,941 compared with the corresponding quarter of 1908, while the fixed deposits have increased by £430,248; the net loss of deposits was thus £1,003,693. This shrinkage in loanable credit has resulted in curtailment of advances, the total under this head being less by £355,401 than at the corresponding date last year. The discounts exhibit an increase of £36,767. The banks have advanced to the public £234,591 more than they hold in fixed and free deposits. There is a shrinkage in the note circulation of £53,732, and a reduction of £265,723 in the amount of the coin and bullion. Turning first to the advances, we find that the Bank of New South Wales alone lent more than at the corresponding date last year. The figures of each bank compare as under:—i Bank. Mar. 1908 Mar. 1909. £ £ £ New Zealand... 7,101,933 7,057,909 47,02-1 dec. I Union ... 3,297,026 3,145,730 151.290 dec. . N.S. Wales ... 2,803,438 2,827,452 24.016 inc. ■ Australasia ... 2,770,722 2,674,36-t 30.358 dec. ! National ... 2,506,193 2,181,154 dec. ! 18,512,310 18,156,909 35\.4 u i dec. 1 The decrease appears substantial, but compared with the decrease in deposits it is small. , The discounts exhibit an increase of £36,767, but in this the Bank of New South Wales and the Bank of Australasia do not participate, both those institutions showing slight decreases. The . figures are as'under: — i Bank. Alar. 1908. Mar. 1909. £ £ £ i New Zealand ... 990,002 1,037,010 40,9(8 inc. Union 214,903 217,998 3 095 inc. N.S. Wales ... 251,858 210,290 11,502 dec. Australasia ... 310,357 338,752 3 6-j dec. National ... 292,015 298,476 5,861 inc. ■ 2,095,795 2,132,562 30,767 inc. ' The discounts and advances for a series of years at the close of the March quarter compare as follow: — . March 31. Discounts. Advances. Total. 1903 ... 1,812,803 11,120,851 12,963,741 1904 ... 2,013,013 12,377,445 1 ( 421,088 1905 ... a,149,094 12,925,151 15,074,215 190G ... 2,143,183 13,991,822 16.1:15,303 , 1907 ... 2,002,808 15,551,547 17,554,355 1 1908 ... 2,095,795 18,542,310 5 1909 ... 2,132,5G2 18,180,909 20,319,471 ' The discounts and advances in the past 1 two years have been exceptionally large, and it is obvious that the banks cannot do more, however anxious and willing they may be to help the community, uno less they can obtain additional funds ■ from some source. Apparently this addi- « tion is not to como from within tho col- >

ony, judging by the shrinkage that has taken place in the deposits. The free deposits or current account balances aggregated £10,100,938, as compared with £11,534,879 at the close of March, 1908, the decrease amounting to £1,433,911. The proportion of each bank is shown in the table appended:— • DeBank. Afar. 1908. Mar. 1909 crease. «£ «£ '«£ New Zealand ... 5.321,918 4,09*1,312 G27.606 Union 1,579,197 1,395,038 181,159 M.S. Wales ... 1,563,898 1,267,123 296,775 l- Australasia ... 1,291,111 1,090,520 200,5:5 >- National ... 1,778,455 1,653,939 124,510 ; v 11,53-1,879 10,100,938 1,433,941 1- The fixed deposits have increased by £430,248, from which it is perhaps reasonable to infer that the owners of these den posits consider that better opportunities b for investment will bo available later on. ]< All the banks shared in the increase, as J. the following shows: InMar. 1908. Mar. 1909. crease. Sciok " New Zealand ... 4,573,010 4,781,205 208,195 1, iUnion 1,313,818 1,350,365 36,547 e N.S. Wales ... 1,624,006 1,897,501 73,555 !e Australasia ... 583,774 G50.8G9 67,095 d National ... 1.459,056 1,503,942 4-1,856 ]° 9,553,694 9,983,942 430,24S For years past the aggregate of the fixed and free deposits has exceeded the disd counts and advances combined, but for t- the past quarter the position is reversed, j The following'table is instructive:— j. Advances J." and Excess of March 31. Deposits. Discounts. Deposits. ' e £ £ £ '? 1903 ... 16,396,523 12,963,7.41 4,032,781 1901 ... 17,656,572 14,421,088 3.235,484 1. 1905 ... 18,247,5.55 15,074,245 3,173,310 1906 ... 19.005.179 16,135,305 f 872,874 " 1907 ... 21,044,093 17,554,355 3 489,733 11 1908 ... 21,088,573 20,638,105 450,468 t, 1909 ... 20,084,880 20,319,471 234,591" t- "Excess of advances and discounts These figures prove conclusively that the ir banks have advanced to the very limit— they have gone as far as they dare go, and those who assail these institutions I. for not doing more can scarcely underi- stand banking limitations. b As might have been expected, the circuI lation is less than it was a year ago, and the amount of the coin and bullion also is less. The position of these two items at | the close of the March quarter for a series 1. of years shows as under: — Coin and y Circulation, bullion, d March 31. .£ £ t 1903 ... _. ... 1,413,243 3,368,244 1. 1904 ... 1,471,108 3.841,943 1905 1,457,970 3,949,343 y 1908 ... 1,517,609 4,290,253 t- 1907 1,6-17,731 4,002,057 ir 1808 1,640,783 4,978,058 1. 1909 1,587,051 4,712,935 The figures, taken as a whole, indicate that- there is still strong need for economy. but with reasonable prudence should be coupled a confidence in the future.