BANKING RETURNS.

Dominion, Volume 7, Issue 1880, 14 October 1913, Page 6

BANKING RETURNS.

The banking averages for the September quarter are now available, and the figures show very little movement as compared with the corresponding quarter of last year. The advances and discounts together show an increase of £30,080, which is very moderate, while the fixed and free deposits combined exhibit a shrinkage of £56,522. With an increase in the value of _ exports amounting to the substantial sum of £3,839,356, better results should have been shown by tho banking l returns. The deposits at least should have been larger. There is a small shrinkage in the note circulation as compared with a year ago, tho figures being £1,608,777, as against £1,663,399. The note circulation is an index of domestic trade. Heavy importing probably accounts for the position. Tho assets of the banks exceed the liabilities by £2,595,632, while a year ago the excess was' £3,383,359. Tho aggregates are set forth in the table appended:— Sept., 1912. Sept., 1913. . £ £ Assets 30,381,147 29,938,494 Liabilities 26,997,788 27,342,862 3,383,359 2,595,632 Turning to the advances, the figures disclose a shrinkage of_ £84,201, which indicates that either the banks are acting cautiously or that those dealing with the banks have no need to seek accommodation'. Tho former is the more likely reason for tho shrinkage. The advances made by the several banks are shown in tho table below: — Sept., 1912. Sept., 1913. Bank. £ £ •. £ New Zealand 8,084,176 8,305,905 221,729 inc. Union 3,566,688 3,4-19,897 116,791 dec. N.S. Wales... 2,908,239 2,802,771 105,468 dec. Australasia 2,886,532 2,706,581 179,951 dec. National ....2,961,938 3,015,239 83,301 inc. Commercial.). — 12,979 12,'J79ine. 20,407,573 20,323,372 84,201 dec. The three old Australian banks have purtailed their advances, while the 'Bank of New Zealand, the National Bank, and the Commercial show increases. Shut off from obtaining advances, resort has been made to securing credit by discounting bills, and the discounts show an expansion of £120,281. The movements as they affect each bank are as under: Sept., 1912, Sept., 1913. Bank. £ .C £ New Zealand 859,223 957,2C9 98,016 inc. Union 215,609 179,737 35,872 dcc. N.S. Wales... 1G:!,585 2(11.5111 inc. Australasia... 207.6117 212,951, 35.317 inc. National 306,716 291,091 15,655 dee. Commercial... — 7'J6 71)6 inc. 1,753,070 1,873,351 120,281 inc. Tho Union and the National Banks exhibit shrinkages, but the others show" fairly large increases. The Government deposits stand at a ! larger than last year, and UkmK a series of live ycara these

deposits show the following fluctuations: — Sept. quarter, •£ 1909 1,423,034 1910 1,850,019 1911 3,121,3(53 ' 1912 1,385,070 1913 1,813,742 There is a shrinkage in the free deposits of £279,796, which is a little surprising in view of the fact that the export trade of the Dominion shows so large an increase. Except for the Commercial Bank, which commenced business just a year ago, all the hanks exhibit shrinkages,_ the National Bank in particular allowing a comparatively heavy decline. The free deposits or current account balances held by the several banks are disclosed in the table appended . Sept., 1912. Sept., 1913. Bank. J! £ £ New Zealand 6,278,237 0,212,110 60,127 dec. Union 1,857,178 1,820,035 30,543 dec. N.S. AValea... 1,058,744 1,013,410 45,304 dec. Australasia 1,423,835 1,400,054 .23,181 dec. National .... 2,151,892 2,011,31-1 140,578 dec. Commercial... — 25,937 25,937 inc. 13,309,880 13,090,090 279,790 dec. The fixed deposits show the opposite movement t-o the .free deposits, for there is an increase of £223,274, in which all the banks shared except the Bank of New South Wales, which exhibits a shrinkage of £3374. The free and fixed deposits'for the September quarter of five years show the following variations: — Free Fixed Sept. deposits, deposits. Totals, quarter. £ £ £ 1909 10,530,370 10,443,750 20,979,120 1910 12,749,702 10,394,047 23,144,349 1911 13,438,405 10,510,116 23,954,521 1912 13.309.85 C 10,425,729 23,795,015 1913 13,090,090 10,049,003 23,739,093 That tho banks have been lending to the full measuro of their resources is proved by the table appended, which shows tho excess of deposits, over advances and dis.ooimts for the September quarter of a series of years:—. Advances, Excess of Sept. . Deposits. etc. deposits. I quarter. £ '£' ,£ 1909 20.979,120 18,170,707 2,808,413 1910 23,144,349 18,177,596 4,900,753 1911 23,954,521 21,431,659 2,522,862 1912 23,795,615 22,100,643 1,034,972 1013 23,739,093 22,190,723 1,542,370 The note circulation, and tho .coin and bullion both exhibit shrinkages, and the decline in the note circulation is particularly noticeable, as tho table appended shows:— Coin and Sept. Circulation. bullion, quarter. £ J! 1909 1,525,553 5,028,490 1910 1,590,541 , 5,042,277 1911 1,634,736 •' 5,294,775 1912 1,663,399 5,446,780 1913 1,608,777 5,334,421 After a succession of increases, the noto circulation exhibits a shrinkage, and that is about the- worst feature of tho whole return, Wd might occasion' concern but for the fact that the outlook before' tho Dominion is unusually good. The' climatic conditions have been favourable for a very large in the output of produce, and prices generally are .on a high level. Under Buch circumstances there should be considerable trade activity and genuine prosperity.