The Dominion. FRIDAY, JANUARY 13, 1911. BANKING RETURNS.

Dominion, Volume 4, Issue 1024, 13 January 1911, Page 6

The Dominion. FRIDAY, JANUARY 13, 1911. BANKING RETURNS.

..»■"' ' ■« *. The banking returns for the final f quarter-of last year are now avail- • able and show that the favourable V conditions exhibited in. the previous *' quarter-have been well maintained. Compared with the December quarter of 1909 ithe position is much better. The'returns show that there was.an' increase of £2,203,303 in all « classes of deposits, Government dc- v positp being greater by £395,229 ? compared with the corresponding ~ quarter..of-4909, and the free de- i posits £1,947,905 larger., The fixed ° deposits show a decrease of £145,831. . Tho : advances have-, increased . by t £006,517;"f while. the discounts have J shrunk "by £32,698.' " Dealing . first e with the aggregate assets and liabil- ? ities wo .got the following: ' ' Dec. 1909. Dec. 1910. V ■■■ £ £ ? Asssts 26,723,677 t Liabilities 23,923,975 20,202,509 1 . Excess of assets ...'. 2,799,702 1,387,474 ,- The assets' of tho Bank of New Zea- i land in New Zealand were less than - the liabilities, the • figures being: y Liabilities £13,574,166, and assets, j £11,702,987. Obviously the bank c cannot find adequate outlet for its 5 funds and ' has, s therefore, been obliged to look elsewhere. The advances, as already stated, ) exhibit an increaso of £906,517. over l the December quarter of 1909, which i in turn .disclosed a shrinkage of t £2,179,425, as. compared with 1908. ( All the. banks shared in the increase f noted:'-.;.; ■ Bank. '■ ' Dec. 1909. Dec. 1910. Increase. £' £ £ Now Zealand 6,516,981 ' 6,711,216 194,235 Union .....','.. 3,074,339 3,173,017 99,278 N.S. Wales 2,386;919 . 2,563,832 176,913 ■ Australasia ■ 2,537,687 ■ 2,719,403 251,776 '■ Notional ... 2,428,172'' 2,612,437 . 184,315 ' : . .-: •16,944,098 17,850,615 906,517 t It is pleasing to sec this demand for .money for it means eith;r that domestic :trade is expanding.'or. else . the inoney has been lent to farmers, ; to develop their properties. Tho' ' borrowers are no doubt using, the ' money to advantage. -;', I The discbunts are less by £32,698. 1 The three Anglo-Australian banks show decreases, while the Bank of New Zealand and the National Bank' exhibit increases: J Bant- Dec. 1909. Dec. 1910. ' ' ,' . New Zealand 884,903 896,640 11,737 inc. • Union ; 210,107 195,169 14,938 dec. N.S.Wales 195,382 181,356' 14,026 dec. : Australasia .'262,678 213,039 19,639 dec. National ' 282,101 286,569 4,168 inc. 1,835,471' 1,802,773 32,698 dec. The movements' of tho advances and discounts are more clearly shown by ' taking the -.figures for seven years." '• and the table apponded' will therefore be interesting: : Dee. ■/.;. Advances. 'Discounts. Total. •■

As to the deposits, comparing tho aggregates: under the three heads for tho past, two years, we get the following results: '-- '~-'■: '' Dec. 190 D- Dec. 1910. 1 Govt. Deposits ...... 1,434,026 1,830,155 F,ree Deposits,. ........ 10,173,072 12,120,077 Fixed Deposits 10,588,172 10,142,341 22,196,170 21,393,473 The (Government deposits are likely to remain large in view of the large amount recently borrowed in London..- -.'. •'.''..".';. , '■- The free deposits or current ac- . count balances show an expansion of £1,947,905, and in this movement allthe banks shared, as this table shows: ■ Bank ' Dec: 1909. Dee.l9lo. Increase. ■ New Zealand 4,685,100 5,649,813 964,653 Union .'.' 1,437,414 1,641,929 204,485 N.S. Wales ... 1,349,370 1,590,114 '240,744 Australasia ... -1,045,871 1,328,032 282,161 National "; 1,655,227 1,911,059 255,862 10,173,072 12,120,9771,917,905 This is rather a large increase, and the owners will not be content to let the money ho idle in the banks. yet it is difficult to sec any outlets for' investment. . The fixed deposits show a decrease ' of £145,831, and this may possibly 1 be due' to the indifference of • the banks on the matter., The banks are : really not wanting any increase in the fixed' deposits. The movements • in the free and fixed deposits during ' the past; seven years show as under: ': Dec. ' Free '. Fixed

It -will.be.seen from the abovo that the free, deposits have grown more' . rapidly than the 'fixed. Tho excess - of deposits oyer advances for the December quarter of each of. the past five years is shown below :, '• Dec. Deposits. Advances. Excess of Deposits. quarter. £ £ £. 1908 v ... 20,003,798 17,748,923 2,344i875 1907 ... '20,787,213 19,983,130 ' 801,083 - 1908 ...-19,422,053 21,423,781 — 1909 ... 20,761,244 18,779,509 1,981,675 i 1910 ... 22,503,318 19,653,35S 2,909,930 In 1908 the advances exceeded the' deposits by the substantial sum of £2,001,698—that was tho year of tho depression. The. note circulation shows a substantial increase, which is another '* safe indication of' the brisker state "' of trade within the Dominion. The coin and bullion together are slight- _, ly less than they were in the previous year. Comparing the figures for seven years wo Ret the following: d Dec..'.■."' ' Note, ' Coin and

The figures in their entirety show that the position is very much the same as it was in- 1907, which mcarts that the depression following upon the American financial crisis threw New Zealand back three years. Much lost ground should be made good in the current year, for' all the factors point to a period of trading activity.

quarter. ' £ :..£ : £ 1804 ... 13,092,138 2,156,011 ■ 15,248,119 1905 ... i 14,08!,4(i0. 2,136,484 10,217,944 1900 ... 15,622,519' 2,126,376 17,748,923 1907 ... 17,913,858 '. 2,009,272 19,983,130 'IOCS ... ■ 19,123,523 ' 2,300,228, 21,423,751 1909 ... 16,944,098 1,835,471 17,779,569 ■1910'.'.. 17,850,015 1,802,773 19,053,388

quarter, deposits.. deposits. Total.. 1904 :.." 8,425,376 9,099)010 17,524,386 1905 ... 8,836,507 9,776,098 18,612,605 1906 ... 10,250,540 9,813,258 20,093,79S 1907 ... 11,136,009 9,651,294 20,787,213 1908 ..., 9,529,657 9,892,396 10,422,053 1909 ... 10yl73,072 10,558,172 20,761,244 1910 ..•. 12,120,977 10,442,341 22,563,318

' quarter, circulation. < bullion. £ £ ■ ■ ■■' 'l!)M ... 1,451,813 3,953,07S r ' 1905 ... 1,468,834 , 4,052,173 19(18 ... 1,611,221' 4,696,758 1307 ... 1,641,S5S 4,981,5GB 1903 ... 1,607,222 , 4,585,756 1009 ■... ' 1,573,955 5,096,845 1010 ... 1,649,028 5,028,248