BANKING RETURNS

Dominion, Volume 7, Issue 2202, 15 July 1914, Page 10

BANKING RETURNS

ENCOURAGING FEATURES. The banking returns lor the June quarter show movements tlmt are not unfavourable. Tlio deposits, both fixed and free, lmve increased by £948,250, na compared with the corresponding quarter of last year, the result 110 doubt ol the larger exports. The advances expanded by £1,512,355, but as the discounts, ivere less by £152,180, the not increase in the accommodation given by thu banks in thus £1,360,175. The circulation is lets than it was in the corresponding quarter, but as the barometer of trade the note issue is now o£ little value, because in the larger centTes a strons preference is shown for metal currency. The several classes of deposits compare as under-.— June, 1914. Inc. Govt, deposits ... 1,988.938 3,341,411 1,352,472 l'ree deposits ... 13,919,531 14,698,719 779188 Fixed depoeits ... 10,637,963 10.807.C25 169,062 • 26,546,452 28,847,155 2,300,723 A striking feature of the above table is the healthy state of the Government deposits, and the total increase places the banks, and especially the Bank of Hew Zealand, in ample funds to meet the demands of the public and the Government. The fixed deposits exhibit the moderate increaso of £169,062, and'all the Jjanlis but one shared in this, as the appended table sho\v6:— ■ June. 1913. June, 1914. Bank. £ £ £ New Zealand ... 5,408,147 5,466,631 58,384 inc. Union 1,355,726 1,285,569 70,157 dec. 2f.fi. Wales ... 1,665,326 1,692,694 27,368 inc. Australasia 633.389 662,985 49,596 inc. National 1,569,659 1,669,187 99.528 inc. Commercial 5,716 .10,059 4,343 inc. 10,637,963 10,807,025 169,062 inc! The Union Bank is the only "institution to exhibit a shrinkage, while the National Bank shows a very' substantial gein. The movements in the fixed deposits during the past live years show as under:— June . 1 quarter. £ . 1910 10,515,094 I'll 10,559,715 l'[2 10,229,895 1913 10,637,963 1914 10,807,025 ' Tho fixed deposits have been practically stationary for some years past, the reason hems: that there has been, a good demand for money with plenty of scope for' investment m one direction and another. As already stated, the free deposits on current accofint balances disclose an improvement of £779,188, and tho total at the close of the quarter is large. The movements as they affect the several banks are given, in the table — j . June, 1913. June, 1914. toe. -Bank. £ £ £ New Zealand ... . 6,602,673 6.927.300 324,627 5 n 0 ,0 Vv I® 60 2 ' 14W66 "2,586 &.S. Wales 1,753,289 1,809,909 56,620Australasia 1,497,834 1,561,096 63 '62 Ivitional 2,075,698 2,195,189 119 Ml Commercial 19,957 62,759 42^02 ' 13,919,531 14,698,719 • 779,188 j After so. excellent, an export year as we nave enjoyed there nothing surprising in the fact that the current account ualances have increased, and although the total 16 comparatively small, .it must bo re- ' membered there, was an adverse movement and the deficiency then created has had to be m.ad-3 good. Under the circumstances the increase is very satisfactory. The position la more clearly shown bv taking the aggregates of the free deposits for a series of years. The figures, are given in table appended:— .Tunc quarter. £ 1910 :...; 12,946,101 1911 '. 13,683,160 ' "I? 14,478,802 ■ I'H ••••■• 13,919,531 1914 v 14,698,719 Tho past quarters total is easily the highest, and showa that the economic conditions are very healthy. , Now we come to the advances, and tho quarter exhibits an increase of £1,512 355 ovor ■ the corresponding quarter of lost year. The banks have been able to meet all demands, and the freedom with which they have advanced money indicates 1 that the bankers are well satisfied. The movements in the advances of each bank show as under . June, 1913. June, 1914. Ini.' Bank. £ - £ . £ New Zealand ... 8,343.724 8,863,425 524 704 Union 3,390,300.- 4,001,442 611,142 N.S, Wales 2,920(390 3,015,8-10 95,450 Australasia 2,742.295 2.899.587 157 292' National ;.. 3,224.272 3,316,334 92,062 Commercial 6,330 38,037 31,707 _ ' 20,627,311 22,139,666 1,512,355 I/ist vtvir the advances were restricted and there was a certaiin amount of stringency, but now the banks are able to lend freely, if cautiously. Tho advances in the Juno quarter of each of the past five years are disclosed in the following table:— June . quarter. - . £ 1910 16.236,228 . 1911 18,784.390 ' 1912 21,154,085 ,1913 20,627,311 1914 : "22,139,666 The discounts exhibit a shrinkage of .£152,180, whioli is aditional evidence of the improved economic conditions. , The total for the past quarter is 1 £1,799,189, as againot. £1,951,369 last year, and £1,839,004 in 1912. Taking the fixed and free deposits together, and the advances and discounts for a period of five years, we got tho following:— , Excess of June Deposits. Advances, deposits, quarter. £ £ £ 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 22,578,680. 1,978,814 , 1914 25,505,744 23.938,855 1,566,889 The note circulation has decreased,, but that lias been the tendency for the past two or three years. Thore is a very substantial increase in the coin and bullion. The figures under these two head.? oro as under :— Coin and June Circulation. Bullion. ' quarter. £ £ 1910 1,645,784 4,994,850 1911 i 1,717,006 ■ 5,103,664 1913 1,773,914 - 5,251,995 1913 '.... 1,714,159 5,160,303 1914 1,699,809 5.5C0.4E0 Taking the returns in their entirety there is causo for much satisfaction. A vast improvement is disclosed. The increaso in the free deposits, and a shrinkage in the discounts are evidence of better conditions, while the increase' in the advances prove that enterprise is active. The farmers have doiie exceedihgly well, especially the wool farmers. One banking house is able to credit its clients with £162,C00, this amount being the stepping realised at the London wool soles in IDly last. New Zealand financos have been straightened up during tho past two years; tho banks have strengthened their resources, and tho Government finances have been placed on a Kouiidcr basis, and the Dominion is now beginning to reap flic benefit. .