The Dominion. TUESDAY, APRIL' 12, 1910. THE BANK RETURNS.

Dominion, Volume 3, Issue 789, 12 April 1910, Page 4

The Dominion. TUESDAY, APRIL' 12, 1910. THE BANK RETURNS.

The Bank returns for the first quarter of the year are such as induce, a feeling of optimism on. the part of thoso who analyse them intelligently. They indicate in the most convincing manner that the depression which troubled us last year has departed. It will bo in the' recollection of our readers that for the March quarter of 1909 there was an abnormal ■ increase in the advances and discounts, while the deposits of all classes had shrunk to an almost alarming extent. There was also a substantial shrinkage in the circulation. This year the position is quite the reverse. The free deposits are' larger, by the fixed deposits are greater by over half a million sterling, the Government deposits exhibit an expansion of £1,111,685, the circulation is greater by £31,070, while the., advances have decreased by the largo sum of £2,008,781, and the discounts by £317,245. These are impressive and highly, satisfactory movements and fully warrant the feeling of confidence which exists in most parts of the country. 'The returns for the past quarter follow very closely the figures for 1907,' which, was one .of the • most prosperous years;, experienced in.New?Zoalajidv : *c f -,-;'.■ Last year the aggregate 7 -' assets exceeded the aggregate liabilities by £4,912,181,_ but this year the liabilities are in excess.of fcho assets by £310,318. This arises from the: fact that the Bank of New.'Zealand is holding a lot of money outside of New Zealand, probably London, where the rates for call money and' short loans, are extremely attractive and profitable. The deposits of all classes.. exhibit an increase of £3,182,567, .made up as under: , . ■ . March March Increase, j ■■■•■■■- 1909 .-. .1910 . .'. ..;■.. . £ £ ' £,' Govt. Deposits 1,224,482 2,336,167 1,111,685 Free Deposits 10,100,938 11,585,410 1,484,472 Fixed Deposits 9,983,362 10,570,352 586,410

•. ~ 21,809,362 24,491,029. 3,182,567 These figures show that there is plenty of ■ money at the disposal of both the State and,the customers of the banks, and it is obvious that a portion of.this credit will be available for investment. • The free deposits as shown above increased by £1,484,472 and all the. banks shared in this movement as the table appended shows:. : '■.-.'.': . March March Inorease. 1909 1910 Bank. . £, £ £ Now Zealand 4,694,312 5,326,875 632,563 Union ... 1,395,038 1,690,262 295,224 N.S. ..Wales.... 1,267,123 1,459,553 192,430 Australasia ... 1,090,526 1,176,434 85,908 National . ... ■■ 1,653,939 1,932,280 278,347

..".;■ ,: 10,100,938 11,585,410 1,484,472 The fixed deposits show a gain of £586,410, or about 5i per cent., and all the banks except tie Bank of Australasia shared in this movement. The greatest increase was obtained by the Bank of New Zealand which accounts for £501,505, the Union Bank increased by £17,506rthe Bank of New South Wales by £44,737,' and tho National Bank by £37,257. The Bank of Australasia decrease was only £14,595. Taking a series of years the deposits show as under:

Govt. Free . Fixed March 31. Deposits. Deposits. Deposits. . . ' .£.'£ £ 1906 ... 2,257,306 9,712,019 9.791.1G0 1907;.. 2.415.21G .11,343,582- 9,700,571 1908 ... 1,748,902 11,534,879 9.553,694 1909 ... 1,224,482 10,100,938 9,983,942 1910... 2,336,167 11,585,410 10,570,352 Now we come to the advances which in the aggregate show a decrease of £2,008,781, _ clearly proving that traders are in a much better position financially than they were, a year ago._ The movement as it affects each institution is shown in the table given below: , March March Decrease. ■ -100(1 1910 Bank. -£ Ji £ New Zealand 7,057,909 6,118,241 939,668 5 D J°!\, ',"'-• W45.730 2,968,291 177,439 N.6>. \Vales 2,827,452 2,260,913 566,539 Australasia 2,674,364 2,366,518 307:846 National ... 2,481,454 2,404,165 17,289

18,186,909 16,178,128 2,008,781 The discounts exhibit a similar movement, the shrinkage being £317,245, of which the Bank of New Zoaland accounts for £137,875, Union Bank £11,172, Bank of New South Wales £50,357, Bank of Australasia £86,192, and National Bank £31,649. •The advances and discounts combined show a decline amounting to £2,326,026, while the fixed and free deposits increased by £2,070,882, which means that since March of last year the country has improved its position by £4,?,g6,008. It is a niagnificcnt recovery, due partly to rigid economy, but* mainly to the bountiful season . just experienced and _ the comparatively high prices obtained for our produce, but parwool. The discounts and advances' for 'the March quarter of

a series of years compare as under: March 31 Discounts. Advances. Total.' S - 3 - 143 ' 483 ' 13.391,822 16,135,305 1907 ... 2,002,80S 15,511,547 17,554,355 1908 ... 2,005,795 18,512,310 20,C38,105 1900 ... 2,132,562 18,186,909 20,319 471 1910 ... 1,815,317 16,178,128 .17,993*445 In 1908 the deposits, fixed and free, exceeded the advances and discounts combined by the small sum of £450,408, in March last year the advances were for the first time for many years larger than the deposits, the excess being £234,591, while this year the deposits exceed the advances 162,317. The, circulation and the coin and bullion arc .both larger than last year, the figures for tho past five years being as under: March 31. Circulation. Bulli^ £ £ 190G . ... - 1,517,669 4,290,253 1907 ... - 1,647,731 4,602,657" 1908 ... 1,640,783 4,978,658 1909 .;. • 1,587,051 4,712,035 1910 ... 1,618,121 5,077,683 -The figures in their entirety disclose a very healthy state of # affairs, and the country is to be congratulated on the improvement that has taken place in so short a time. It cannpt be denied but that in most quarters business is increasing, and retailers are beginning to take a more cheerful view of the outlook. With the amount of credit now available and with the comparative scarcity of acceptable securities, rates for money should tend to ease, and the outlook before New Zealand is full of promise of an era of prosperity.