BANKING RETURNS.

Dominion, Volume 7, Issue 1956, 13 January 1914, Page 6

BANKING RETURNS.

The banking returns of the /six banks operating in, New Zealand for the December quarter.reflect the effects of the recent strife of _ waterside workers. Compared with tho corresponding quarter of 1912, tlte note circulation is less by £40,743, the free deposits or current account balances show a shrinkage of £174,173, the overdrafts . ha-ve expanded by £430,697, and the f discounts _ by £•64,095. These movements indicate that trade was less active than a year ago, and that traders and others have had to seek bank accom-. modatioa to a greater extent. The in f{io assets and liabilities are shown , in the table appended:— ■ ; ='„ Dec., 1912. • Dec., 1913. : : c£ ' Assets 31,692,277 .'.'31,812,377 Liabilities ■'... 26,138,401 '..'26,778,395 Excess, of assets 5,563,876 5,033,953 There is a shrinkage '.of ' about £530,000 in tho margin of difference between the assets and liabilities. The advances or overdrafts exhibit an increase of £430,i397, and the movements as they affect the several banks, arc disclosed in tho table below ' ■ " ' Dec., 1912. Dec., 1913. Bank. -E

' 21,300,019 *30,697 inc. The Bank of New South Wales and the Bank of Australasia exhibit shrinkages, and the decrease shown by the latter is relatively large. The discounts have expanded by £G4,085, and the aggregate exceeds the twomillion mark for the first time since 1908, when the effects of the financial crisis'in the .United State? were being frit in the Dominion. /-The movements .in discounts "..'are given as under;— ... , .. Dec 1312 Dec ,191% ■ Bank. i. J- .; :■ •£ - New Zealandl,o3 i,467 i 1,071,084 -39,G17 ino Union ■ 308,567;.. 183,410 .10,157 (tec N,S. Wales.'. 103,916 205,033 ~41,719 lno Australasia'24s,B74l;;:. 237,138'.'; 8,730 <Jteo National . y- / 300,670.''• 308,822152 ino ;Coiumorcial./ ~ v; - — - . 1,000 1,500 itic •'"/**'. • 61,095 iao The Bank of. New South Wales/has made: the^largest-relative' 1 .aggregate's,lot. the'"a'dvaoces'-.aind.'dis-' ' coun'ts^foritho/Dccembcr -quarter 'of. each of-the pnst five .yoars mnkc'nn

'figures: nre 'ns ; under;. ■!■?"'"■ ftfDecS'KAdvanees;^Discounts.??. Totals.? ninitor C - C £ ;19093.K?:; : ;:5f16,9i4, MIS VI, 835,471'?18,779,569 .1010 17,850,(11.') 1,602,77;') 19,653.388 • ifui=:..2l,ass,tun i,802,354 ■ l»;j,191,oo:i 1,950,494 ■ 23,310,543 mi:! 21,828,740 L>,oii,r>S9 ■ 2n.541.335 Jll four years there, has been an in* jcrcascjof £4,882,648 in_ the advances,' :uu! £170, US in the discounts, or a .totai ! 'of £5,081,766, which serves . 1 to .'illustrate t the' fact that the ■ hanks have been lending freely. Tho . demands, however, have been exceptional, and even with slightly higher rates of interest there is a keen de-' "mand for accommodation. ' Now we corns to the deposits', and the three classes exhibit the, following movements;— '' 3 ' y f£,J. ■.' . Dee., 1912. Dec., 1913.®' je§ Govt. do-. - '=■■■- posits '' 1,342,976 2,686,064. 733,088 inc Free deposits 12,46.8,048 '12,£63,875 174,173 d« Fixed deposits. . 10,438,732 10,545,345 106,613 inc. .. . 24,243,756 24.925.2W 675,528 inc There is a substantial increase in the Government deposits, but the free deposits arc less than a year ago. and yet with the increase in advances the deposits should also have expanded. Tho movements in the free deposits as they affect the several institutions are shown in the table appended: — Dec., 1912. Dec., 1913. Rs.uk. cC £ £ New Zealand 5,823,064 5,789,341 33,723 dec. Union ' 1,855,124 1,682,112 26.088 ino PJ.S. Wales 1,581,949 1.841,883 40,<168 dec Australasia 1,349, EG! 1,298,284 61,517 defl National '2,043,776 1,042,837 106,939 dec Connnercial 8,334 39,418 31,084 inc 12,468,015 12,293,875 174,173 dec 'The Union _ and tho Commercial alone show increases, and tho shrinkages with the others arc small. The .fixed deposits increased by £106,613, and this is shown in the table given below; — * Dec., 1912, Dee.,' 1913. Bank. - £ .£ JZ .■ New Zealand 5,261,785 5,349,139 78,034 hie Union . 1,298,339 1,317,803 10,553 inc. X.S. Wales 1,693,840 5,679,62-4 14,216<10e Australasia 633,363 643,878 10,515 inc National - 1,551,259 1,556,« 4,831 .inc Commercial 146 7,422 7,276 inc 10,4-5-8,732 10,545,345 106,633 inCTho Bank of Australasia, is the only institution to exhibit a shrinkage. The movements in the aggregate of the free and fixed deposits for the December quarter of each of the past five years are disclosed in the table appended: — Free Fixed Dee. . deposits, deposits. TotnU.' quarter. £ £ £

In four years the free deposits have increased* by £2,120,803, while the fixed' deposits' have - decreased by £42,827, and on the totals there is an increase of £2,077,976. Bankers collect the savings of one section'of the community and lend- this to another section on security, and the more fluid the security the better. The fixed and free deposits represent the savings or the idle credits, and the advances and discounts are the means adopted by bankers for profitably employing the deposits. Taking the December quarter of each of the past five years, we will get a comprehensive view of the 'movements .tinder these., heads. -The figures,..aro, as under;— ' ' ; Advauces, Excess of Dec. Deposits. etc. deposits; quarter. .£ J £ 1909 2D,76i,:>44 15,779,689 1,981,675 1910 22,563,318 19,653,388 2,909,980 1911 23,431,330 23,191,603 240,127 1912 22,9f18,78'0 28,346,513 439,763* 1913 - ..22,839,220 23,811,335 1,603,115* 'ExctfSs of advances. Comparing 1913 with 1909 it will bo seen that the deposits have increased .by £2,077,976, while the advances and discounts together show an increase of £o,OOljeji, As a matter of fact, the banks have lent to the public- more than they have received, and this process cannot go on indefinitely as some people think it should. ' We have now to deal with the note circulation and the metal reserve. Uride;' the former head there is a contraction of £4Q,745, while the metal reserve has increased by £52,416 compared with IDil Taking a period of five years the position is as under : — December Xotes. Coin, quarter, £ .

The figures oil the whole, while not. entirely satisfactory, are not discouraging. Not a little of the adverse showing is due to _ the strike, but as our produce is still making good prices, Mid there is a substantial increase in the volume, we have reasonable grounds for believing that with common prudence things will right themselves early, and with Very little, if any, inconvenience to the'community, .

Isc-w Zealand 8,579,265 8,971.001 392,636 iftc Union 3,676,802 54,884 iijo K.S, Wales 3,015,387 2,983,847 31,540doc Au c ttalasia 3,077,232 2,9Gi,20S 116,024 dec National 3,015,-149 3,155,330. 109,881 inc Commercial '■ ■ i,9H 22,774 20,860 inc

1909 10,175,072 10,588,172 20,701,244 1910 "13,120,977 10,1-12,341 22,553,318 1911 12,934,464 10,496,086 23,431,130 1912 12,488,048 10,438,732 22,908,780 1913 12,293,875 10.545,345 22.839,.220

ISO'J 1,573,955 5,080,845 1.910 1,649,02-3 ,5,028,248 1911 1,!>98,1G0 8,331,953 1912 1,712,4GB 5,237,767 1913 ......... 1,671,723 5,280,183