The Dominion. MONDAY, APRIL 13, 1914. BANKING RETURNS

Dominion, Volume 7, Issue 2121, 13 April 1914, Page 6

The Dominion. MONDAY, APRIL 13, 1914. BANKING RETURNS

: »_, . The banking averages for the first quarter of the year disclose the fact that there has been an increased deniana on the banks, as compared with a year ago, but this pressure has been met by the expansion in deposits. Thus: £ Advances increased 6&M538 Discounts increased 45.75G Total increase , 6745)-t Free deposits increased ... 13,241 Fixed deposits increased... 12?,f53 Government deppsiis increased (33,343 All deposits increased ... ?D3,;i37 Ifc will be Bcen t that while the advances and discounts together increased by £674,284, as ecti&paMsd with a year ago, deposits increased by £793,337. Throughout thft quarter there have been complaints of dullness of trade, and this would appear to be. emphasised by tfee shrinkage of £30,379 in the note- circulation, but the evidence is not ronclusivf, as- actual coin is now iiti'inji ifinrft largely mm], and large cm- ; ployors oF labour paj wagps mostly in roin. The detnand for ooin must, : he pronounced since the banks have ' iiierwisiul tlwir reserves hy Jteß;>,7oo. 1 Deal ing first with the deposits, . there is as already stated nn incroaso i of £7i).'1,:i,'!7 in a!i cJttsses, the figures i being as ur v dcr: — Alar., 1913. Mar., 19U. Inc. £ £ & Cfovt. fif.pp.Mts .2.030.328 2,1)71.23!) «»9,3i3 Ftp? deposits 11,460,r,30 13.475,771 1.3,2*1 ■ Filed depoaita 10,5i?6,7J<5 10,55i,»T9 127.7.T3 i 2j,P08,t33 3«,f0f,313 733.33? The iacreate in the Government dt> i ■

posits' ,, ..cari i the loan ißSUCtl':iii\Fcljniary;KdiKi|iis : at least ■ Cbfvthutgissucj'-is; intended the' scrvice's.' l of«llic.i , leri'diHg.'tdcp'a'rt7; 'ment's-of tho StalcpftheresjvwilKtbe. plenty of- idle.:credHs>:<it|tlie.:disposal of the banks, especially^Hlie;Bank-of New . Zealand,--; during/thoS',cui'rent quarter,, and', consequently /-a- , reduction of the'.-overdraft ■.ratcs-' < may-..bc looked forward to ;: j««Turning now. to the fvce' deposits . ; .pr. 'current, account balances, . the--, movements.- .as i ;'thoy affect each. ■ table -appended:— £•«>■< #' !: ''i:;- /; :'^->-■■■. i: ' ■■ : : ;; . f :::-Mttr.,19!3: ,, lfar;; ; ?siil;-% ,: ' ;: ,;C i *'v; ' Bank.'-:':/.-■ -: £ - <* ?■'- A ■' ■ »■■&*'■ £■ " i! "' «* ■■■:.;::•!?;.' i'm.rm e<319.293 .1.7,531-d*o. Union ■ ■.:.:.:''. 1,659,572 1.928,12? ■" 08,555 inc; N.S. Walra ' 1,651,786 ■ 1.663,t93 11, lift inc.: ■Australasia :lM'i,%»a 1,45M88 :H.!!»l inc. National ■-.„ 5>107.205 ■ 2.0(12,093 ■ 18,172 do*. Commercial. '} 12,579 , J0.270 33,391.' ine, ■ : ;, : ;' .;: 13.460,530 .13,475.771 15,211 in c ; The Bank of New Zealand and the National Bank', am tho only institutions to exhibit shrinkages, and in both cases the figures ate substantial. The movements in. the fixed deposits relating to the several banks areas under:— ■■■'•■ >.'& ■i-A- - -..j- . ■■ : ..■-.. ' "' - .' :Mnr.,1913. MarV.MM* V Bank. ' ■£''■■ s£~ ■' £ . N.Z ;...; 5,218,55t 5,327,880 ■ 70,07fl inc. Union 1,304,108 1,278.093 26,073 ilee. N.S. Wales 1,684,4.94, 1,688 t 49S 3,999 iiw. Australasia G«,252 863,371 21119 inc. National ... 1,545.023 1,585,759 40,738 inc. Commercial 3,298 ■<■ 9,101. 5,893 inc. ':' ■•'■' i '■' ' 16,430,726'16,554.179 127,753 inc. ! The Union Bank is the only, institution to show a shrinkage in tiw amount of the fixed deposits. The advances as shown above increased by £624,538, and the figures of the several banks compare as under:— I - Mar., 1913. Mar,, J9ll. Bank. £ £ £ N.Z. .. ■ 5,5i4,<!27 8.71.ft,1(52 196,133 inc. Union a,438,981 5.753,839 31!4.568 inc. N.S. Wales 2,557,ff19 2,5)81,322 36,387 dec. Australasia 2,906,(151 2,102,803 12.248 (tec. National ... 3,165,110 8,269,163 183,981 inc. Couimerßial 4-,2QS 32.&DJ 28,186 inc. 21,035,105 21,619,643 624,238 inc. The Union Bank exhibits a marked increase, and the gain by the National Bank is also substantial. Tho Bank of Australasia and the Batik of New South Wales had smaller demands on them. The discounts were larger by £'49,'?56, in which all tho banks , shared except the Bank of Aastralasia and the National Bank. Tho discounts and advances for the ; March- quarter lor each of the past five years compare as under:— Ifareh Discsiuflts. Adtanees. Totsil. -quarter. £ £ S 191 D 1,815,31? 16,1?8,128 17,933,445 19J1 1,700,666 1.8,009,58-4 19*71-0,390 1912 ...... 1>845.497 2U84.053 23,139,550 1913 1,967,351 21,025,105 £3,993,456 1914 2,017,107 21,6iWi-i3 23,6Gf>-,750 .. Coiuparing the totals of 1910 and ; 1914 it will be seen that in four , years there has ken an increase of ; £5,673,305_, and if any inference is I to be devived from this it is that it i requires a great deal rnoro money J now jhan it did even four years ft-go I to finance the trade and commerce pi the country, and the tendency will be foi" tJw monetary demands to increase. It. is the sign of pro> gri-esg and of growth. Comparing the aggregates of the fixed aftd free deposits with the totals of the adva,nces atid discounts we get this interesting table : —

AdvaccßS and Sxoeee of March Depe»its. discovmts. d«positSi quarter. £ £ £; 1910 22,153,762 ir.5J93.445 4,162,017 lftll 23,470,0(6 10,710:390 3,759,8© 19J2 21.016,91.12 , 23,189,581) 887.35S ii!l3 33,887,258 22,993,156 891,800 1014 24/130,350 3(73,300 The margin between tho two is very small, but as tho Government deposits ate so unicli larger now no importsincc iiccct be a-ttAEhecl to the shritikagc in the ttinrj?in. The volume of the circulation and tho total holding o£ coin at the March quarter o.f each of the past five years ate shown in the table appended:-— March. Circulation. Coin and btiJHon. quarter. £ £ ' HllO 1,1518,121 5,077,683 ■ lilil 1,fi61,46S 5,0311,7111 Wl2 1,708.889 8,32:).014 1913 IJOMIS - 5.032,115 IDM 1,5G5,939 5»537,881 Tho agfCFcgato assets and liabilities for the March quarter show considerable changes over a period of five years. Whereas in J9lO and 1911 the .liabilities exceeded the assets, in the- following years ike position has been reversed.' The movements are given in the table below:— March', Assets. Liabilities, einartef, Ji £ ii) 10 35.945.243 £G,255,5G8 1911 27,809.188 2e,«k,R31) 1912 »i.4.-J7.«l 53.195. enS 191S 30,tefi.9!M 27,820.730 1914 31,526,774 28,567.203 Taking the figures on, the whole,, the position is ftofc unsatisfactory. There are indications that imports are still on a large scale, and perhaps luxuries figure to a great extent. The growing commerce of the country, coupled with the high prices for com-ttiodities, wake greater demands on credit, and more money will have to be provided. • It. is impossible for anyone to be pessimistic over expanding co-mnrerce. :