BANKING RETURNS

Dominion, Volume 8, Issue 2512, 13 July 1915, Page 8

BANKING RETURNS

A FAVOURABLE POSITION DISCLOSED. : The bahklng returns for the .Tunc qmrter, iyhich aire now available), are decidedly Interesting as showing the effects upon New Zealand after practically a year/of war. The effects are notsuoh as to calusei us any feelings, of'fear; on the contrary, were it not for the inconvenience and.difficulties of providing l sea transport, ' our gains would have - been' tremendously greater than N . they have heen. The outstanding features of the return, as compared with last year, are an increase of £401/(52 in the fixed deposit, an increase of £2,737,660 .in the .free deposits, a decrease of £157,519 in the advances, and a decrease of £357,759 in the .discounts. The customers of the hanks have rahice'd their liabilities to . bankers, : and lave : largely increased their. ,er,edits, • a' very- healthy •' stateof affairs. - Dealing ' first with the deposits, the position is ;a3: , : June, . June.' ' • : , -1914.: • i9is. Government deposits ■... 3,341,411 3,075.251- ; Froo' deposits 14,698,719 17,436,379 Fixed deposits 10,807,025 .11,208,777 ! " ■■ 28,847,145 31,720,407 There is a slight shrinkage in Government deposits, but- no. .special notice need bo taken of this, because of the war expendi-/-The, Jgrajilh. ,of the other deposits is exceptionally-'large. The; increase in tho fixed deposits of £401,752 indicates that there are;'invest<iiS? who- are prepared to accept a moderate rate of interest for a limited period; and it is,/ therefore, fairly safe to suppose- "that a Government loan for a .reasonable amount on attractive terms tyouldi be'.readily taken .up just'now. The variations, in. the fixed depositß as ■they affect each bank v. are shown as under:— ...... ••• .. .. . . June,. .'.June,,. In- . ",7 1914; ■■.'>■l9ls. • .crease. Bank. £ £ Now. Zealand ... 5,466,53 1 5,674,965 ' 208,434 Union 1,285,569 • 1,358,933 73,364 N.S. Wales. ...... 1,692,694 1,745,365 52,671 Australasia':" 682,9115. , 696,355 13,370 National . ~1,669,187 - . 1,717,252 -. 48,065 Commercial 10,059 ,15,907.'. 5,848

10,807,025 11,208,777 -• 401,752 The inorease ! in'the free deposits is verylarge; and arises froin the' fact that very high prices liavo been received' for tho produce,shipped during the, season,-<ind from'tho difficulty of importing 1 goods from England and America. , All, the.bankff'Bhow' increases, as -is disclosed in .the table appended:— • June, Juno, In-' , a'.. ■ 1914;,1915. -' crease.. • 'Bank.'' •' • £ .£ ■ New. Zealand ... • 6,927,300 8,090,557 1,163.257 Union 2,142,466 2,555,147 412.681 -H.S. Wales'.';;.... ,1,809,909 2,163,953 ■' 354.044 Australasia ... 1,551,095 1,880,037 326,941 National 2,195,189 ' 2,611,593.:. 416,404 Commercial , ... , 62,759 ; ■ 127,092 '■ 64,333 X. V' : U ' 69Ml9 2,737,660 Now wo come to the advances, and here wo find a decrease of £157,519. Four, out of the six bonks exhibit decreases, : but tho Bank of New' Zealand and the Commercial Bank : . show increases... The figures ■ compore as'trader:— ■ -. • . ... ■ June, , June, 1914. 1915. • Bank. „■ \ , £ .£ - £ New Zealand'... 6,868,426 ■ 9,174,665 ' 306,239f .Union . 4,001,442 - 3,858,067 143,375* N.S. Wales .3,015,840 < ,2,965,761 50,079* Australasia ;•••.„• 2,899,587 2,737,557 162,030* 'National , 3,316,334 3,164,508, 151,826* Commercial ... -38,037 ', 81,589 , 43,552+ 22,139,6(6 '21,982,147 157,519* . flncrease. • *Decrease. . The discounts have increased to a much greater extent, showing that either: fewer bills aie being given or that , the holders of,bills,have no need to discount them. The movement in-the' discounts for the Juno quarter of: five years' show as under:— ■' -v '. £ ' ' 1 1911 i 1,831,465 ' '.

: 1912 -1,839,004 1913 .. ......v....;...:............... 1,951,369 • -. 1914 1,799,189. 1915 „ : 1,441,430 - The Bank of - New Zealand shows a decrease of £142,243, the Union Bank £44,486, Bank' of,Ke-.v .South Wales £74,903, Bank,of Australasia' . £47,893, and National Bank '£52,829. The Commercial-Bank exhibits an increase of £45,595.

- Taking ; the fixed and free depositfi combined. and the advances and discounts together,,, the .'excesses of the one over the other, lor each of five years is shown in the table appended:— : - '

■' vi .' . Excess of ) Deposits. Advances.' deposits. ' '•■'■ £ . •..£ . 1911 . 24,242,875' ■ "20,615,855'/ ! 3,627,020 1912 24,708,697 : 22.993,889 ', 1,714.808 1913 24,557,494 . : .22,678,680 .1,978,814 1914 ........... 25,505,744 .. 23,938,855 ' ; 1,566,889 28,645,155 .' 23,423,577;. 5,221,579 .There is: a Very substantial sum lying idle, or rather.: awaiting investment. A gooddeel of this 'money will no . doubt' 1)0 required to replenish- stocks of merchandise, which have run down'owing to the difficulties of the situation, but even if .this is allowed for there is still a very large 'amcrant,to'- spare, which should bo made available-to the State.-.'i ■:.' - -Dealing next with ' the circulation ..and tie,' metalv reserve, both ■ show ; substantial increases., ,'v The note circulation 'has increased fr0m:'£1,699,809 to' £2,824,902, or by £1,125,093, -. and .the coin and - bullion' has risen, from'v £5;500.450. t0.,£6^750,140, an in.crease of £1,249,690.. .. The point to be noted is that the \ metal reserve has increased to a greater extent than the circulation. The .figures under'these two heads for the June quarter of five years ehow as under:— . .. Ooui and Circulation. bullion. 1911 1,717.006 : ; : . 5,103,664 r ':1912 ...; 1,773,914 : < , 5,251,995 ' ' ~' 1913 • ; 1,714,159 r .5,160,303 1914. 1,699,809 . . 5,500,450 > ~ 1915,■■.i'.-.-:..;.:.-. 2,824,902 ':.;' 6,750,140 The figures on the whole are abnormal, Btill i they disclose ,a. favourable position. We'are strong enough to meet all rea-

sonablc domestic demands, and to spare something substantial to help pay the cost of the war. The outlook continues favourable for our producers. HIGH COMMISSIONER'S GABLED MARKET ; REPORT. ' The Department of Agriculture, Indus-' tries,, and Commerce has received. the following cablegram from the High Commissioner for New Zealand, dated London, Jnly.lo. (Note: Quotations, .unlees otherwise specified, are average market prices, on spot):— Mutton,—The Government is regulating meat supplies. Only a small quantity is available for the general public, but tho market is steady, with little, alteration in prices. Canterbury, 73d. per lb. for lightweight; North Island, 7Jd.. for light-weight. Lamb.—A fair demand continues, but it is chiefly for. light-weight. Canterbury two's, BJd. per lb.; heavy-weight four's,BJd.; other than Canterbury, 83-Bd. for light- : weight. • ■ Beef.—Prime New Zealand beef cannot bo quoted. A small supply of cow beef is selling at:—Hinds, 7Jd. per lb.; fores, 63d. There is a moderate supply of chilled, beef. Chilled hinds, Bjd. per lb.; fores,7Jd. Butter—The market is quiet, but steady. Best quality, for which a good demand continues, is scarce, but'there is a largo supply of second-class quality. Tho report is current, here that a quantity, of' lowgrade Siberian and French butter has been put in cold store. Danish, quiet, per owt. (i 1555. to 1585.; New Zealand, nono offering; Australian, a moderate demand, .138s. to 1405.; Siberian,' a good' demand; 128s. to 1325.; Irish creamery; slow, except finest, -140s. to 1425.; Argentine, unsalted, 140s. to 1425. •. Cheese.—The market : is very nuiet. Prices are irregular, and also are declining all round on account of large supplies coming forward. Buyers are holding back, and holders are anxious to sell. : Canadian, slow, white and coloured, per cwt., 84s. to 88s.; New Zealand, quiet, coloured, 90s. to 925./ white, 91s. to 935.; English, firm, 98s. t0',1025.; Australian, slow, coloured, 86s. to 88s.; >vhite, 88s. to 905.; States, dull, white and coloured, B2s. to 865., according to quality end size. Hemp.—The market is dull. N.Z. goodfair, per ton, £32; fair, £30;- fair current Manila, £37. Forward shipment, July to September, N.Z. good-fair, £31; fair, £29 ■10s.; Manila, new graded, fair, £36 10s.; medium, • £32. The • output from Manila for the week'was 20,000 bales.. There is now a brisk demand at £20 7s. for second grade, ■which, is extremely ' scarce, i - Hops—The"market is firm' with improved demand.': English, per cwt., 90s.'to 1155.; Californian, 80s. to ilOSs. . '• Wheat—The market is quiet, but steady. Canadian, July to August; 535. 6d. per quarter; American, July to August, 465. Oats—The . market is quiet. Argentine, July to August, 245. 6d. per quarter. Scheelite.—Blackv.-ell's quotation for scheelite on July 9 was E(ta. ; '. NEW; SOUTH WALES GOLD YIELD. By Telegraph—Press Association—Copyright (Rec. July 12, 8.55 p.m.) ' ' Sydney, July 12. , , The gold yield; for. the half-year totalled 69,722 ounces, in. value £296,162 i an increase of 23,972 ounces. .