BANKING RETURNS

Dominion, Volume 9, Issue 2587, 8 October 1915, Page 8

BANKING RETURNS

• iSATI'SFAGTOEY FIGURES. . Tho banking returns for the September I quarter-fuLiy refloat the effects of tile great war, and the position is favourable to Nciv i Zealand from tho financial point of view. The salient features of the Teturne, as compared. with the corresponding quarter of last year, are as follow:— ' \ £ l Free deposits increased 3,373.035 Fixed deposits increased 780,179 Advances decreased 726,354 Discounts decreased 387,316 { Circulation increased 810,240 Coin and bullion increased ... 1,179,414 These figures are impressive, for they show clearly enough that, compared »"with' a year, ago, the financial position of the Dominion lias been much, strengthened. These excellent results are mainly due to ■ the higher prices obtained for our produce, and also to the difficulty of importing merchandise and restricting us, in our expenditure on that account. Taking the Government deposits and tho fixed deposits the • position is shown as • under, in comparison with the figures for the corrssponding quarter of 1914: — Sept., 1914. Sept.. 1915. Govt, deposits 3,150,038 2,587,373 602,665 dec. Free deposits 14,172,177 17,545,863 3,373,086 inc. Fixed deposits 10,828,887 11,609,066 780,179ine. ■ 28,191,702 31,742,302 3,550,600 inc. . Tho Government deposits are- less by £602,665 than a year ago, but tho total is still large. - The movements in the free deposits as they affect the several banks are shown in the table appended:— ' In- <. Sept., 1914. Sept., 1915. creases. Bank. £ £ £ New Zealand ... 6,580,379 8,278,741 1,698,362 Union '. 2,077,043 2,441,140 364.097 N.S. Wales 1,754,813 2,156,48 c 401,673 Australasia. 1,527,677 1,796,707 269,030 National 2,155,589 2,735,848 580,259 Commercial ...... 77,276 136,941 59,665 14,172,777 17,545,863 3,373,086 These are the current account balanced, and while the increase is very substantial it must be remembered that a certain proportion must be held in reserve for tho purchase of merchandise to replenish stocKa as soon as tho conditions are favourable. Tho growth of the fixed deposits indicate that thore is at present a restricted field for. investments, or that investors prefer to retain their capital and await a more favourable opportunity for investment. The movements in the fixed deposits are given below:— In- ' Sept., 1914. Sept., 1915. creases. Bonk. £ . £ £ New Zealand ... 5,446,504 5,866,405 419,001 Union .; 1,302,518 1,440 jO3 138,285 N.S. Wales 1,691.886 1,794,296 102,410 Australasia 673,542 728,638 55,096 National 1,703,101 1,756.514 53.413 Commercial 11,336 22,410 11,074 10,828,887 .11,609,£66 780,179 Tho fixed and free deposits for tho Sep-, tember quarter of five years are shownr in the table appended:— Free Fixed September deposits, deposits. Total, quarter. £ £ £ .1911 ... 13,438,405 10,516,116 23,954,521 1912 ... 13,363,886 10,425,729 23,795,615 1913 ... 13,090,090 10,649,003 23,739,093 ' 1914 ... 14,172,777 10,828,887 25,001,664 1915 ... 17,545,863 11,609,066 29,154,929 The substantial amount of idle crcdit awaiting investment makes it apparent that, if the two million loan to bo issued by our. Government is properly handled and made attractive to investors the whole of tho amount wanted -will- be readily forthcoming. Now we como to the advances, which, show in the aggregate a decrease of £726,354, in which all the banks shared except. the Commercial Bank of Australia, which exhibits .an increase. • The figures are as under: —, t DeSept., 1914. Sept., 1915. crcasos. Bank. £ £ £ 1 Now Zealand ... 9,232,755 9,012,221 220,534 Union. 4,121,872 4,031,905 89.967 N.S. -Wales-; 3,018,729 .2,863.641 155,088 Australasia- 2,965,228 2,887,938 77,240 National 3,311,229 3,096,161 . 215,C68 Commercial , 67,764 99,307 *31,543 22,717,577 . 22,991,223 726,354 : *Increase. There has [been a substantial rodnction • in 'bank overdrafts, which helps to emphasise the claim of prosperity. Tho discounts for the September quarter of last year totalled £1,744,999, while for the same quarter this year there is a drop to £1,357,683, a decrease of £387,316. Towards this decrease, the Bank of New Zealand contributed £168,224, the Union Bank £49,340, Bank of New South Wales £103,917, Bank of Australasia £28,910, and National Bank £41,142. The Commercial Bank shows an increase of £4217. Taking the fixed and free deposits together, and the advances and discounts together, the excess' of the -one over tho other for the September quarter of each of the past five years. 16 disclosed in. the table following :— Exccss of September Deposits. Advances, deposits, quarter. £ £ £ 1911 ... 23,954,521 21,431,659 2,522,062 1912 ... 23,795,615 22,160,643 1,634,972 1913 ... .23,739,093 22,196,723 1,542,370 1914 ... 25,001,664 24,462,576 539,088 1915, ... 29,154,929 23,348,906 5,806,023 The excess of deposits this year is formidable, and is i more than double that shown in 1911, which was regarded as exceptionally large.. Tho circulation and' the coin and bullion both show increases, and this is best seen by comparing the figures of several yoars. In the. table appended these aTe given:— ' Coin September Circulation.', and bullion, quarter. £ £ • 1911 1,634,736 5,294,775 1912 1,663,399 6,446,780 1913 1,608,777 5,334,421 1914 2.012,569 5,823,575 1915 -2,622,809 ■ 7,002,989 The increase in the note circulation over last year is £810,240, that is to say, that an additional sum .is in the pockets of tho people, who are spending more, partly because of the high 'prices 'of commodities and partly through extravagance. Tho total note circulation is very large, but it will be noted that the banks have coTerod the increase with metal and with a satisfactory margin to spare. The total of coin and bullion is now very large. We are. just now at the beginning of a new produce season, and prices all round are very good. If the facilities for importing merchandise continue restricted as seems likely, there must be a further accumulation of idle credit. The position is in some degree. artificial, and that of itself should suggest the desirability of avoiding all extravagance-and unnecessary expenditure. . - ■