The Dominion FRIDAY, JULY 16 1909. THE BANK RETURNS.

Dominion, Volume 2, Issue 561, 16 July 1909, Page 4

The Dominion FRIDAY, JULY 16 1909. THE BANK RETURNS.

."■■ ;■;. —♦— ~■■; _. ! Foe some unaccountable reason the return from the Bank of New South Wales ■ did not reach us until about midday yes- • tortlay, hence the delay in dealing with this subject. The returns as a whole disclose a far better position so far as the banks are concerned than was the case a year ago. At the corresponding date last year-there .were shrinkages in-tho fixed, free,' and Government, deposits. The ad-; vances' exhibited the abnormal increase of over £3,000,000, the discounts wero greater by £287,670, and the aggregate, of - the fixed ,and free deposits exceeded the total : of the advances and discounts combined by £156,469. The position disclosed by, the returns under review is far different, and omphasiscs tho fact that bankers have taken the right course to safeguard themselves and the Dominion. Tho following table is interesting: — Liabilities. Jane; 1908. Juno, 1009. £ '£ ' ■ £ Note CIT" « oulation ... 1,666,616 1,623,670 42,946 dec. Bills ... 91,800 85,061 6,745 dec. Government , ... , deposits ... 1,503,741 1,142,038 361,703 dec. posits °"... 11,532,286 10.592.G70 639,G16dec. F posits °",.. 9,722,062 10,039,089 31C.127 mc. Assets. • Coin and bullion ... 4,917,718 4,956,111 38,396 inc. Discounts ... 2,274,841 1,967,233 807,598 dec. Advances ...19,136,576 17,075,129 2,061,4-17 doc. Government „ » „„, , »„, j securities 1,254,927 1,250,361 4,623 dec. Other Bccuri- , ties ... 1,066,535 941,227 125,308 dec. The liabilities aggregated £23,836,002, as against £24,600,034, and the assets amounted to £26,942,215, as compared with £29,480,724. The assets exceeded the liabilities by £3,108,213, while at the corresponding "date last year the excess was £4,880,690. The liabilities and assets of each bank are shown below: — i Liabilities. Assets. Bank.. ' £ £ New Zealand 12,111,270 11,«7 206 Union ... •'• 2.999.C26 4,133,710 ' New South Wales ... .1,242,3*6 4.MMM Australasia 1,896,318 3,410,228 National 3,556,412 3,928,8,0 23,830,002 20,042,215 It will bo observed that tho assets of the Bank of New -Zealand fall short of the liabilities Isy £704,064, and there aro no doubt adequate and special reasons to account for this. Notwithstanding that the fixed deposits show an increase of £31C,427, the deposits in tho aggregate show 1 , a shrinkage of £684,892, as, is disclosed in the tablo appended:— June, 1908. Juno, 1009. - £ ■£ Government deposits ~. 1,503,741 1. "2.038 T?re« deposits 11,532,286 10,692,670 Tixed deposits 9,722,662 10,039,059 22,758,689 22,073,797 The Government deposits, it will be noted, arc less than they were a year ago ,£361,703. , , Doaling first wit,h tho fixed deposits, ■ thero is a gain of £310,427,. in which all the banks, .with the .exception of, tho Union Bank, shared.. The iollowing'table shows the movements as they affect each institution:— ■ '' June, 1908, June, 1909. 'Bank. """"" .S ' ■' ; ■'■ -■' £■ l '"" " £. New Zealand,'.. 4,655,540 4,907,M9 25UG9inc. Union 1,331,686 ,1,309,271 22,415 dec. N.S. Wales ... 1,658,/"1G 1,678,731 ' 20,015 inc. Australasia ... 605,967 • -626,607' 20.G40inc. National, .„ 1,470,753 1,517.171 46,418 inc. 9,722,662 10,039,089 316,127 inc. It is not easy to account for this expansion, but it is certain that some of it represents the proceeds of -loans recently raised by local bodies in London. The chairman of the Bank of New Zealand at the annual meeting gave a list of these' loans,- and the total was £1,410,600. A good deal of the monoy was for redemption purposes; still a large amount was for new-works. -The fixed deposits at the close of the June quarter for seven years compare as under:— - June 30. . . £ , 1903 ~. ... 8,609,064 1904 8,869,981 1905 9.423.151S . 1906 - ... 9,867,273 1907 - ... 9.629.02G 1908 9.722.6G2 1909 10,039,089 The past quarter shows tho highest aggregate, and this perhaps is a matter for satisfaction. The free deposits, Or current account balances, show a decrease of £639,616, and this is not surprising, in view of the over-importation of last year and tho dullness of trade. All the banks suffered under this head, as is shown below:— June, 1908. Juno, 1909. Decrease Bank. £ £ ■£ New Zealand ... 5,294,393 5,102,519 191,84-1 Union 1,579,82-1 1,536,181 43,610 N.S. Wales ... 1,546,754 1,375,562 171,192 Australasia ... 1,258,447 1,122,737 135,710 National ... 1,852,868 1,755,633 07,230 11,532,286 10,892,670 ' G39.G16 In 1907 the free deposits reached the highwater mark of £12,213,939, so thatin two years there has been a reduction of £1,321,209. Taking a poriod of seven years, the free deposits for tho Juno quarter compare as under: — June SO. ' £ , 1903 8,937,515 1904 9,551,663 1905 9,469,665 1906 10,732,708 1907 12,213,939 1908 11,532,286 1909 10,892,670 Now we come to the advances, and the figures show a decrease of £2,081,447. A year ago tho banks advanced to the full limits of their local resources, and it was imperative thaf. they should recall some of this money. Increased exports, restricted imports, and bargain sales have enabled traders and others to'repay the ban&s, and now we may safely say that tho trading community is in a good position. Trado may be slow and dull, but the trouble of over-stock appears, to have been overcomo". Tho position of each bank with respect to advances is shown Helow:— June, 1908. June, 1909. Deqreaso Bank. £ £ - £ Now Zealand ... 7,500,227 6,65.1,181 84r,0i6 Union 3,240192 3,013,282 226,010 N.S. Wales ... 2,908,181 2,458,946 443,235 Australasia ... 2,905;258 2,522,447 382,811 National ... 2.582,718 2,427,273 155,145 •.9,136,576 '' 17,075,129 2,061,417 ,Thc discounts decreased by £307,688; the Union Bank, however, shows an increase of £1744, while the other institutions, except the National Bank, exhibit substantial decreases. Taking tho figures for seven years, the advances and discounts compare as under': — Advances. Discounts. ' June 30. ' ' '.'■£. £ 1903 11,366,111 1,84-1,211 1001 12,381,8.')t 2,059,145 l 1905 13,218,0,"0 2,108.811 190G ' 14,108,565 2,031,632 1907 1G,033.3W 1,187,102 1008 19,136,576 2,274. e H 1909 17,075,129 1,987,251 t Last year, nwing to the unusually heavy , incrcaso in tho advances, tho free iinrl fixed deposits roinhined were less than the aggregate of tho advances and discounts but thip.ycar tho position is reversed, the s[deposits being in excess by £1,860,377;

this amount, however, is nearly; £2,000,000 less than f.he, oxcohb of 1007. Mho following tablo is interesting: — ...,.■' KxCMRof Deposits. Advances, tin. Doprtsila 1903°' ..'. 17,746,0(W 13,210,352 W%f] '1901 ... 18,451.017 H.HO.OM 4,0 (1,651 1905. - ... 18.892,85s lft.il!!«.2M VMW IMG ... 20,599,981 10,11(1.197 4,459,iH4 1907 ~. 21,842,905 18,(1211,514 :i,822,45 190S .... 21,254,948 21,411,417 JSWG9* 1909 ... 20,9.11,75!) . .19.0J2.382 1,889,377. * lixcess of advances;. The noto circulation sliowh a decline for the second year in succession, and with the prevailing dullness in trado nothing else could have been expected. The shrinkage, however, is comparatively small, Coin and bullion show a very satisfactory incrcaso, and'arc'at the highest point yet touched in mid-year. The figures under these two heads compare as undor :.— ; . / Coin Circulation. and Bullion, ; June, £ . £ ■ ''' 1003- ,„ , ... 1,501,247 3,508,245 ' 1004 ... ... 1,510,785 • 3,807,820 . 1905 ... ... 1,521,659 4,000,598 -. 1906 ... ... 1,615,446 4,060,850 1907 ... ... 1,694,328 4,755,607 1908 •■'..;. ... 1,066,610 ,: 4,017,718 1909 '...: ... 1,623,670 '.. 4,956,111 Reviewing the figures as a whole, the economic position of the Dominion appears to be a great deal bettor than it was a year ago. The banks have pursiicd a cautious ancTprudent policy, which, if maintained, will help the country along very materially. The restriction of advances on real estate has been an important factor. Tho outlook is promising, but still calls for continued rare and economy.