THE BANKING RETURNS.

Dominion, Volume 6, Issue 1799, 11 July 1913, Page 4

THE BANKING RETURNS.

The banking returns for the sec--jd quarter of the year are now available, and they are not quite as satisfactory as the figures of a year ago, as they disclose the fact that business is quiet. The note circulation, which is the barometer of domestic trade,, shows a shrinkage, the deposits are less, a,nd the advances are also smaller. While the figures are unsatisfactory in this respect, they art decided'iy encouraging in another, aB they show that traders generally are exercising more caution. The liabilities for the quarter are returned at £28,422,414 as against £28,685,573 a year ago, and the assets aggregate £30,228,765, against 5~3Ji.1;6,864; The excess of assets over liabilities is £1,806,351, as compared with £2,490,291 for the June quarter T'le deposits of all classes exhibit a shrinkage of £195,490, owing mainly to the free deposits being much less than a year ago. The figures are as under:— June, 1912. June, 1913. Government deposits 2,033,225 1,988,938 Free deposits 14,178,802 13,919,531 Fixed deposits 10,229,895 10,637,963 T , . , , 26,741,922 26,546,132 , „ deposits show an increase of £408,068, in which all the banks shared, as the following table will show: — ; June, 1912. June, 1913. Inc. Bank. : £ £ £ New Zealand 5,188,188 5,108,147 219 959 Union 1,286,128 1,355,726 69*598 N.S. Wales.. 1,661,000 Australasia 563,550 633,389 64,839 National 1,523,029 1,569,659 46 630 Commercial — 5,716 5,716 10,229,895 10,637,963 408,068 The Bank of Australasia exhibits the highest proportionate increase. The Commercial Bank of Australia was not operating in New Zealand a year ago. The free deposits show a reduction of £559,271, the figures of the several institutions comparing as under : — June, . 1 912. June, 1913. Bank. ■£ £ £ New Zealand 6,869,106 6,602,673 266,433 dec Union 1,956,181 1,969,850 13,699 inc N.S. Wales 1,752,344 1,753,289 945 inc Australasia 1,627,377 1,497,834 129,543 dec National ... 2,273,794 2,075,898 .197,896 dec Commercial — 19,957 19,957 inc 14,478,802 13,919,531 559,271 dec The fixed and free deposits for the June quarter for the past five years compare as under: — Fixed deposits Free deposits June 30. £ £ 1909 10,039,089 10,892,670 1910 10,515,094 12,946,101 1911 10,559,715 13,653,100 1912 10,229,895 14,478,802 1913 10,637,963 13,919,531 Turning to the advances, the aggregate exhibits a decrease of £527.574, which is practically the shrinkage shown by the free deposits. The movements in the advances as thev affect the several banks are shown in the table, appended: — June, 1912. June, 1913. Bank. J! „e £ Now Zealand 8,338,442 8,343,724 5,282 inc Union 3,633,877 3,390,300 213,577 dec N.S. Wales .1,041,665 2,920,390 121,275 dec 1 Australasia 3,060.219 2,742,295 326,95* dec 1 National .. 3,068,632 3,221,272 155,620 inc Commercial — 6,330 6,330 inc ~21,15t5r20.627.31f 527~57Td0c [

The three big Australian banks are responsible for the shrinkage. The discounts have increased by £112,365, and the total of £1,951,309 is larger than in any year since 1909. The discounts of the several banks arc as under: — June, 1912. June, 1913. Hauk. .£ .£ i New Zealand 915,091 1,021,190 10G.405 ino Union 211,678 181,278 27,102 dec N.S. Wales .. 100,129 188,013 27,884 ino Australasia . 234,970 250,fi11) 21,(513 ino National ... 317,130 300,79S 1G,338 dec Commercial — 173 173 inc 1,839,004 1,951,369 112,365 inc A comparison of the advances and discounts for the June quarter of five years is disclosed in the table appended:— Advances. Discounts. June 30. .C X 1909 17,075,129 1,967,253 1910 16,236.22S 1,699,340 1911 18,754,390 1,831,465 1912 21,154,885 1,839,001 1913 20,627,311 1,951,369 ' Comparing the fixed and free deposits, combined with the advances and discounts, we get'the following: — Excess of Deposits. Advances. Deposits: June 30. X £ £ 1909 20,931,759 19,012,382 1,889,377 1910 23,461,195 17,935,568 5,525,627 1911 24,242,875 20,615,855 3,627,020 1912 24,708,697 22,993,889 1,714,808 1913 24,557,494, 22,578,650 1,978,811 Wo have finally to deal with the circulation and the metal reserve. The note issue is smaller, and there is also a shrinkage in coin and bullion, the figures for a series of years showing as under: — Circulation. Coin & Bullion. June 30. £ £ 1909 1,623,670 4,956,111 1910 1,615,784 4,994,850 1911 1,717,000 5,103,661 1912 1,773,914 5,251,995 1913 1,714,159 5,160,303 Bankers are acting with commendable caution, and in view of the stringency in the European and American money markets this attitude is the correct one. During the next few months money will be dearer in London than it is now, and there are just possibilities of its being very dear. The banks are evidently prepared for this contingency, and if the business community exercise caution and care the monetary stringency will not hurt ub very much.