THE BANKING RETURNS.

Dominion, Volume 6, Issue 1568, 11 October 1912, Page 4

THE BANKING RETURNS.

. The banking returns for the September quarter became available yesterday, and we are thus enabled to make the usual comparisons. The September quarter closes the produce year, and the monthly returns show that for the year exports have increased by about a million sterling. This improvement in trade is not reflected in the banking returns, as both the fixed and free deposits exhibit shrinkages, while advances and/discounts have expanded. The aggregate liabilities and assets of the different banks comparo as under:-— Liabilities. Assets. Bank. £ £ New Zealand 13,998,275 13,086,018 Union 3,307,210 '1,822,710 N.S. Wales 3,530,076 4,158,399 Australasia ,- 2,181,068 3,827,900 National 3,979,550 4,486,120 26,097,788 30,381,117 The liabilities of tho Dank of New Zealand exceed the assets by £9t3,ill 1 ?, while a year ago the excess was as much as £:), 189,37(1. The advances in the aggregate exceed twenty million sterling, and show an increase of £720,331, as compared with the position a year ago. In view of the increased exports, this may be taken as unusual, and tho explanation may bo that the imports have been excessive, requiring more than the increase of tho exports to discharge the liability. The Bank of New Zealand and the Union Bank monopolised the. increase in tho advances, for thc i other three institutions show shrinkages. The figures are as under:— Sep'f., 1911. Sept., 1912. Bank. ,C .C ,£ N. Zealand 7,466,906 8,081,176 617,210 ine Union ... 3,327,813 3,506,088 238,875 inc' N.S. WnlflS 2,922,297 2,908,239 11,058 dec' Australasia 3,007,167 2,886,532 120,935 dec' National 2,962,699 2,961,938 761 doc' 19,687,212 20,107,573 720,331 inc. The increase of- £720,331 compares fuvuuvablv with tho exuaiibioii

shown last year, when the advances increascu by £3,160,152. The discounts increased by the trilling amount of £8053, the totals being £1,753,070 against £1,744,417. Increases are shown by the Bank of New Zealand £36,f)50, Union Bank £2590, and National Bank £30,302. The Bank of New South Wales registered a decrease of £25,169, and the Bank of Australasia £35,710. Taking a period of five years, the aggregates of the advances and discounts show the following movements: — Advances. Discounts. Total. Sept. 30. £ £ £ 11108 18,947,901 2,209,9118 21,217,959 1909 1(5,393,281 1,777,1211 18,179,707 1910 10,527,090 1,650,806 18,177,590 1911 19,087,212 1,744,417 21,131,059 1912 20,407,573 1,753,070 22,100,013 The aggregate now is larger than in any previous year, and exceeds last year's record by £728,934, and thU-. in spite of the fact that in most cases higher rates have to be paid. Turning now to the deposits, it is to be noted that the Government deposits have shrunk tremendously. Taking the September quarter of five years, we get the following: — Sept. 30. £ 1908 .; 1,065,097 1909 1,428,031 1910 1,830,(119 1911 3,121,303 1912 1,385,076 There is a decrease of no less than £1,735,687, as compared with the position last year. The free deposits exhibit a shrinkage of £08,519. The figures of the several institutions show that the Bank of New Zealand and the National Bank had increases, but the other three institutions had decreases. Tho figures are appended :- Sept., 1911. Sept., 1912, Bank. £ £ £ ■ N. Zealand 0,238,802 0,278,237 39,435 inc. Union 1,878,021 1,857,178 21,413 dee. X.S. Wales 1,718,189 1,058,744 59,415 dec. Australasia 1,510,189 1,423,835 86,051 dec. National 2,092,301 2,151,892 59,588 inc. ( 13,438,405 13,369,886 08,519 dec. The fixed deposits are less by £90,387, and this is not; surprising, in view of the strong" demand for capital. Under this heading it is also to be ' noted that the Bank of New Zealand and National Bank show increases, while tho other institutions exhibit decreases. This is disclosed in the table below:— Sept., 1911. Sept., 1912. Bank. £ £. £ N. Zealand 5,190,869 5,298,202 107,333 inc. Union ... 1,448,550 1,291,052) 157,504 dec. N.S. Wales 1,709,305 1,676,570 32,735 dec. Australasia 619,341 590,283 23,058 dec. National 1,518,015 1,563,622 15,577 inc. 10,516,116 10,425,729 90,387 dec. The fixed and free deposits combined exceed the advances by £1,034,972, while last year tho excess was £2,522,862, and £4,966,753 in 1910. The circulation stands at £1,663,399, and is £28,663 greater than a year ago. The metal reserve is also larger, and the figures under these two heads for a period of five years arc as follow:— ' Circulation. Coin. Sept. 30. £ £ 1908 1,5(5,815 4,881,637 1900 „ 1,525,553 5,028,490 1910 , 1,590,544 5,042,277 1911 1,634,736 5,291,775 1912 1,603,399 5,446,780 Decreased deposits and increased advances and discounts clearly indicate that there is a strong demand for money, but whether the money is required for development purposes and extension of trade, or, merely to meet obligations outside the Dominion, is uncertain; but looking at all the circumstances, the latter is probably the true explanation of the demand. The war in the Balkans, which cannot now be checked by the Powers, must causo money fco become dearer, for after .all tho demand for gold must be met in London, and the bank rate must in consequence go up. In view of this, and until the position is clearer, it would be advisable to_ exercise reasonable caution. It is in our favour that there is promise of a good year for our principal products.