STRIKING BANKING FIGURES

Dominion, Volume 9, Issue 2818, 8 July 1916, Page 8

STRIKING BANKING FIGURES

The banking returns for the June quarter, when compared with the uguies for the corresponding quarter of 1915, .. dscloses exceptional conditions. The deposits exhibit an increase of £6,803,042, of which Government deposits account for £2,286, • 309, and free desposits for £3,106,269. The advances and discounts show the moderate expansion of £544,'i63 ) whi'<> the note circulation is larger by £1,093,434, and. coin and bullion by £518,292. Money has been pouring into the country, and as there is great, difficulty in importing, credit is accumulating. The three classes of deposits compare as under: — June, 1915. June, 1916. Increaso. Govt, deposits 3,075,251 5,361,560 2,286,309 Free deposits 17,436,379 20,542,748 ' 3,106,369 Fixed deposits 11,208,177 12,619,141 1,410,364 31,720,407 38,523,449 r There is. a formidable increase in the. Government deposits, part of which is no doubt due' to some expansion in th; Post Office Savings .bank deposits., The increase in tho free deposits, which is also very large, represents the inflow of credits on- the sale of produce exported. The increase in the fixed deposits is much larger than usual The. movements of the free deposits as they affect eacli bank, arc shown below:— •- Bank. June, 1915. Judo, 1916. Increase. ■":£•••• a ■ • • ft ''

. 17,436;379 -•20.MMK8: 34CR3W The increase in the fixed deposits is shared in by "all the banks, ; tlic Bank of Now' Zealand with £705,705 securing just over onc'-half the increase. The aggregates of the nxedand free deposits for a perjod nf fivo years'are disclosed-in the table appended:—

i7iu ,>6,017, 1^1.. . o. . oo,ioi,noy The growth of the deposits since the war Began is remarkable, and a fanpercentage of the increase may" bci rightly; ■ regarded as war- profits:. The-'advances increased -by £933,475, and the' position of'the banks in this rcspect is as', under Juno, June, . -•1915.- 1916; •• * : "* * • £ "1 jg A 1 : 1 New - Zealand' 9,174,665 9.571,936"397,321 ino. Union'. l • • 3.858,067 . 4,153.088. 265,021 inc. N.S. Wales 2,965,761 2,902,266 63,495 dec. Australasia 2,737,557 2,733,746 3,811 dec. National 3,164,508 3,429,236 : 254,728 inc. Commercial ' 81,589 155,300 73,711 inc 21,952,147 22,915,622 933,475 The' Bank qf.Ncw South Wales shows, a comparatively large decrease, while the Bank of New. Zealand, the Union Bank, and ..the National Bank exhibit large increases. 1 The discounts show a shrinkage of £88,712 in the aggregate, and the wonder is that it-is .not larger. . The , aggregates of thc : advances and. discounts for five years compare "as follow:—

Advances. Discounts. Total. June. £ £ £ ■ 1912 21,154,885 1.839.C04 22,993,889 1913 20,627,311 1,951,369 22,578,660 1914 22,139,666 1,799,189 23,938,855 1915 . 21,982,147 1,441,430 23,423,577 1916 22,915,622 1,352,718 24,268,340 Another table that is very interesting is to show the excess of. depositsover advances-and'discounts.". This is shown in tho table appended:—"

Excess of • , ' Deposits. ; Advances... deposits.. June. . .£ ■ ...'.'.£, £.." 1912 24,708,697 . 22,993.889 . 1.714,808 1913 24,557,494 "22,578,'680 ■ 11978,814 1914 " '25,505,744 : 25,938,855 . :M.E65.855 1915.: ' 28,645,1 M 23,423;577v.-.v;5,221,579-1916 33,161.889 " 24,268,340 8,893,649 The excess'cf deposits this--year is, simply huge, and the banks must be hard put to find investment for the money at -their disposal, and how they will get along when they are restricted from. seeking, invest-., ments outside of Now Zealand it is hard to say. The figures on the whole merely emphasise what everyone knows. New -Zealand is making large war profits, and by reason of the demand for its primary produts is revelling in "war prosperity."

New Zealand 8,090,557 9.943,750 1,853,193 Onion ' 2,555,147 2,882,150 327.033 N.S. Wales . 2,163,953 2.487,509 323,556 Australasia ' 1,888,037 2,134,329 246,292 National 2,611,59.5 7..B97.132' 285.5J9" Commercial 127,092 197,848 70,756

" Fixed Free Total deposits. deposits, deposits. Juno. • £■ 1912 10.239,895 ' .14,478,B02' -24,708,697 5913 ■ ■ 10,657,963 13,919,531 •-24.557/94 1914 10,807,025 . 14,693,719 . 25,505,745 1915 11,208,777 " 17,436,379 . 28,645,156' 1916 12,619,141 .'20,542,748 33,161,889