EVIDENCE OF OUR PROSPERITY

Dominion, Volume 10, Issue 2897, 9 October 1916, Page 6

EVIDENCE OF OUR PROSPERITY

1 ■ 6 —' — There is much to be loarne J of the general condition of trade and commerce in the Dominion from the banking returns just issued for the September quarter of the year. The figures are remarkable, and constitute a record'. It is generally taken that the September quarter marks the close of the produce year in New 'Zealand, and the banking figures reflect the high prices whicn have been secured for most of our primary products. The increase in the volume of the deposits in the trading banks of the Dominion has been exceptionally large when compared with the corresponding quarter of last year, amounting in the total to over six million pounds. These doposits are made up as follow: Sept., 1915. Sort., 1916. Incrcasß. Govt, deposits... 2,587.373 5,159,239 2,571,856 Free doposits ...17,645,863 19,620,671 2,074,808 Fixed doposits ... 11,609,066 12,978,629 1,369,663

■■■■•■ 31,742,303 37,7681539 6,016,237. The increase in tho Government deposits is no doubt due to the loan recently floated, tho first instalment of which would be in tho hands of the Treasury. Yet; in spito of the public finding the loan money, there is an incrcaso of £2,074,808 in the free deposits, and £1,369,563 in tho fixed deposits. This may bo taken as a vary fair indication of the generally' prosperous condition of tho banks' customers. Tho gain in the free deposits was shared in by all the banks, as the following figures show: Sopt,, 1915. 6opt., 1916. Increase. Bank. £ £ £ Now Zealand... 8,278,741 9,525,407 1,246,666 Union 2,441,140 2,590,790 . 149,650 N.S. 'Wales 2,166,486 2,365,876 209,390 Australasia, ... 1,796,707 2,116,875 320,168 National 2,735,848 2,830.770 94,922 Commercial ... 136,941 190,953 54,012 ' 17,545,863 19,520,671 2.074,808 The gain in tho free deposits is equal to about 12A per cent., compared with a year ago, and does not represent the full measure of our advance during the ( vear. The fixed deposits also exhibit an incrcaso of nearly 12l per cent., and the figures of each bank arc shown in tho table appended:

Sept., 1915. Sept., 1916. Increase. • Bank. £■ £ £ New Zealand ... 5,666,405 6,574,259 707,854 Union : 1,440,803 1,608,334 167,531 N.S. Wales ...... 1,794,296 1,945,365 151,069 Australasia, ... 728,633 855,980 125,342 National 1,756,514 1,945,269 188,755 Commorciol ... 22,410 51,422 29,012 .11,609,066 12,978,629 1,369,563 The fixed and the free deposits together total £32,599,300, as compared with £29,164,92!) in September last year, and £25,001,664 in September, *1914, which was practically at the beginning of the war. Compared with 191 d, tho increase is no lesa than £7,597,636, and would have been largor, but for the transfer of ctedit to the Government in connection with tho loan. Turning to tho advances, wo find there is an increase as compared with last year of £1,257,013, and the figures of the soveral banks show as under: Sept., 1915. Sept., 1916. Bank. £ £ £ New Zealand 9,012.221 9.970,195 957,974 iuo Union 4,031,905 4,088,955 57,050 iuo N.S. Wales... 2,863,641 2,898,448 34,807 ino Australasia:..' 2,887,988 2,698,910 189,078 dee National ... 3,096,161 3,411,117 314,956 ino Comjnqrcifll... 99,307 131.511 82,204 ino

• 21,991,233 23.249,136 1.257,913 ino The Commercial Bank has almost doubled tho amount of its advances, ■while the National Bank shows an increase of over 10 per cent. Tho total gain in the advances is about 6 per cent., and shows that people are finding scopo for the profitable use of money.. The discpunts amount to £1,428,829, being an increase of. £71,146, which, like the advances, is about 6 per cent. A comparison of the aggregates of the deposits on the one hand and the advances and discounts on the other, shows the excess of deposits to amount to the : huge sum of £7,921,335, that is to say, the amount lent by the public to the banks exceeds tho amount advanced By the banks to tho public by nearly £8,000,000. The table appended is interesting:

Excess ol Deposits.'Advances, deposits. So.pt. £ £ £ 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 1916 32,599,300 24,67?,965 7,921,335 As bank notes are now legal tender it is not surprising to find that the note circulation has_ increased. The increase, however, is phenomenal, having expanded from £2,822,809 in 1916, to £4,329, 9p3 this year, an increase of £1,507,144. There is an increase in the amount of the coin and bullion amounting to nearly half a millian. The totals of the note circulation and >coin and bullion for a sories of years are as \ follow:

Coin Oiruulation. and bullion. Siiof,. .-C £ 1513 : 1,663.399 5,'<!6,7M 1913 1.603,777 5,334,421 11114 2,012,560 5,811.575 ' 1915 2,822.801 7,002.989 1916 4,329,953 7,498,250 Taking tho figures as & whole, it is very plain that the year has been one of extreme prosperity, and this we may attribute almost entirely to the wav. Tho keynote of the situation is high prices for our primary products, and as the prospects for the current produce year are as good as, and in some respects better than for the last, we may look forward to a continuance of the prosperous times.

Messrs. Wright, Stephenson, and Co., of Dunedin, have acquired the largo grain and produce business of W. Gunson and Co., of Auckland, and taken over the entire staff. Mr. J. G. Gunson, Mayor of Auckland, has accepted the position of advisory director to the company in Auckland.—Press Association. '