BANKING RETURNS

Dominion, Volume 11, Issue 174, 12 April 1918, Page 10

BANKING RETURNS

The banking returns for the first quarter of the year do not show the same expansion iu the deposits and advances ae. was , the caae a year ago. The tixod and free deposits together show un increase of £1,149,958 over the figures for the corresponding quarter of last year, while the advanpes increased by £1,952,364, the increase in the advances thus exceeding the increase in the depoeite by £802,406. In the March quarter of 1917 the deposits increased by £5,082,487, and the advances by £3,895,830, the latter being £813,343 greater than the former. There is thus a singular similarity in the movements, the increased public borrowings from the banks exceeding the increased amounts lent by the public to the banks. There is a substantial gain in the Government deposits due probably to a big increase in the revenue, and possibly also to payments on account of the third War Loan.' tho prospectus of which was issued on March 16. The several classes of depo3its compare as under:— / T i In- 1 .Deposits. Mar., 1917. Mar.. 1918. crease Government ... 7,357,119 9,706,949 2,349,830 Government mm fixed "■■;;;;..; 13,385,838 13,891,195 505,35s 4iJ13,659 45,212,447 3,498,788 Tho Government deposits show following movements:-- '. 3,256,715 916 4,855,939 1917 7,357,119 ' 1918 9,706,949 The Government deposits are now double what thuy wero two years ago, and three times as much as three years ago. Tho freo deposits, as shown above, disclose an increase of £6«,600, in which all the bnnks shared, ne the table appendeu diecloses:Bank. 11ar.,1917. Mar., 1918. crease New Zealand ... 10,105,762 10,245,118 139,356 Union - 2 979.647. 3,020,162 40,515 NS Waies" .... 2.587,326 2,709,318 121,922 Australasia '. . 2,222.922 2,345,585 122,663 National ..' 2 865.179 3,036,943 • 171,764 Commercial .... 209,866 257,176 47,310 20,970,702 21,614,302 643,600 The National Bank shows up prominently with an increase of £171,764. ' . In respect to fixed deposits all the banke

show increases, tho Bank of Australasia exhibiting the largest individual gain. Tho figures of tho respective institutions are aa unders—

InBank. . Mar., 1917. Mar.. 1918. crease. I.£ £ £ New Zealand ....6,711,191 6.839,823 128,632 Union 1,588,728 1,597,680 8,952 N.S., Wales 2,192,422 2,213,512 21,090 Australasia .... 926,481 1,093,085 166,604 National 1,917,467 2,062,367 144,900 Commorcia! .... 49,549 84,729 35,180 13,385,838 13,891,196 505,358 Tho expansion in (he aggregates of the free and fixed deposits for tho March quarter of each of five years may bo Been from tho following table:— Free. Fixed Total March. deposits, dunosits. deposits. £ £ £ 1914 13,475,771 10,554,479 24,030,250 1915 15,958,732 10,870,507 26,829,239 1916 19.091.949 12,182,104 31.274,053 1917 20,970,702 13,305,838 34.356,540 1918 21,614,302 13,891,196 35,505,498 Tho increase shown in 1918 is smaller than in any of the three immediately preceding years, and this smaller expansion will be emphasised unless the primary products are increaeed in volume or tho prices are advanced. Tho advances as they affect the several institutions are shown in the table below: Bank. ilar., 1917. Mar., 1918. £ £ £ N. Zealand 11,711,691 13,357,116 1,645,425 inc. Union 4,160,071 3,998,828 161,243 dec. N.S. Wales 3,166,162 3,319,123 152,961 inc. Australasia 2,915,278 3,176,371 261,093 ino. National... 3,962,278 3,976,277 13,999 inc. Commercial 226,587 266,716 40,129 Inc. 26,142,067 28,034,431 1,952,364 inc. The Union Bank is in tho singular poaition of showing a substantial shrinkage, while the gain exhibited by the Bank of Australasia is considerably greater than any of tho other institutions except the Bank of New Zealand. The discounts which, for tho March quarter of last year amounted to £1,562,863, have this year shrunk to £1,223,465, the decrease being £329,398. The advances aud discounts for. tho March quarter of each of five years show as under :— March. Discounts. Advances. Totals. 1914 2,017,107 21,649,643 23,666,750 1915 ■ 1,634,418 22,106,144 23,740,662 1916 1,487,655 22,246,237 23,733,892 1917 1,552,863 26,142,067 27,694,930 ' 1918 1,223,465 28,094,431 29,317,896 Taking the free and fixed deposits together, and the cdvances and discounts together, the excess of the former over thi! latter during the March quarter of each of the past five years is disclosed in the table given below:— Excess of March. Deposits. Advances depoeits. £ £ £ 1914 24,030,250 23,666,750 363,500 1915 26,829,239 23,740,562 3,088,677 1916 31,274,053 23,733,892 7,640,161 1917 34,356,540 27.694,930 6,661,610 1918 35,505,498 29,317,896 6,187,602 The margin of difference is still large, but it is £1,352,559 less than in 1916. Now we coino to the circulation and coin and bullion. There is an increase of £1,128,078 in tho circulation, and of £120,553 in coin and bullion. The figures for the March quarter of each of five years show as under:— Coin and March. Circulation, bullion. £ £ „ 1914 1,666,939 5,317,861 ; 1915 2,639,585 6,420,559 •. 1916 3,171,553 7,120,854 1917 4.637,451 7,865,635 1918 5,915,529 7,984,188

Taking a broad view the banking situation shows that the war prosperity continues, and that there is sufficient money in the country to enable ns to meet our own war expenditure, but the point that cannot bo ascertained is whether the people realise that it is their bouuden duty to help the Government to provide the money required for carrying on the war by subscribing freoly to the War Loan.