COMMERCIAL ITEMS

Dominion, Volume 11, Issue 249, 9 July 1918, Page 8

COMMERCIAL ITEMS

' INVESTMENT SKA RES. Ycslerday's quotations for investment . shares were as follow;— i Buyers. Sellers. I ■ ■ £s. (1. £ s.<l. ; National Bank — 5 11 0 ■ Bank N.Z. (old) 12 0 0 Bank N.Z. (now) 17 8 0 1 Well. Investment 0 10 3 — . 'Wellington Gas (£10) 12 0 0 - Well. G.'ts (prof.) — 0 i 3 1 S.B. Insurance 6 10 — ' Kaiapoi Woollen (ord.) ... 7 .1 0 — Well. Woollen (ord.) 7 2 6 : West-port Coal 1 1 6 ' — Westport-Stoukton 0 7 4 — I Waipa Colliery —' 0 V 7 3 Kauri Timber (335.) 18 0 — ■ IjeyJnndrO'Brion — 1 710 , Colonial Sugar _ |>[ js u ! Golden Bay Cement 0 18 0 — Jlanning and Co — J 2 0 , N.Z. Drue; Co 2 13 6 i N.Z. Paner Mills 12 3 — j BANKING KKTCIiNS. The tanking'returns for tlie June qiiiir- : tor ol' thi current year are not so satisfactory as tlioy were twelve months ago. • ■ With the exception of Government deposits j all the other items exhibit adverse move- ■ inont3. Thus, free deposits or current account balances, which last year showed an ■' increase for the. quarter of £2,838,243. this year show a decrease of .61,270,368 Fixed ■ deposits increns'cd last year for -the quar- , ter by £1,200,043, this year the increase , is only £110,266 All classes of deposits in- . creased last year by £6,172,554, this year the increase is only £5,405,349. Tlie advances last year increased by £3,893,994, and this year tho increase i 3 nearly a million more, being £4,753,691. There is a larger expansion in circulation, tlie increaso being £1,263,692, against £972,467 a year ago. Coin and bullion, which a year ago exhibited an incrcaso of £1,087.094, this year show a shrinkage of £265,690. ' The details of the deposits compare as ' under:- , June, June, 1917. 1918. Deposits. £ £ £ . Government 7,495.823 14,061.274 6.565,451 inc. Free 23,380,995 22,110,628 1,270,368 dec. ! Fixed 13,819,184 13,929,450 110,266 inc. 44,696,003 50,101,352 5,405,349 inc. 1 The Government deposits am nearly dou- ; We what they were a ycor ago, but tbnt 1 does not follow that the whole amount i3sc

at (lie disposal of the Government. The authorities are handling a good'deal of money on behalf of the Imperial purchasers of produce, and there are probably other commitments also that are not disclosed Tlio free deposits, as nlreatlv staled, disclose a shrinkage of £1.270,368. as !.' compared with n year ago, and tlio niovrtt nicnts as they alleet the several bauks are shown in the table appended: •June, June, 1017. 1918. Hank. £ £ £ K. Zealand... 11.242,631 10.631.243 M 8.438 dec. :, Union 3,350,460 2,957,825 392,635 dec. !. N.B. Wales... 2.897.696 2,735,027 162,569 dec. Australasia 2,523,757 2,370,540 153,209 dec. National .... 3,148,171 3,141,562 6,609 dec. ; _ Commercial 218,331 271,4i3 53,092 inc. 23,380,996 22,110,628 1,270,368 dec. ft The shrinkage in the current account ■- balances is not satisfactory, in view of thu fact that thu produce yeiir has practically ended, and most of the produce has been paid for. Of course there is a considerable quantity of produce in which the Imperial, Purchase Hoard is not interested, but' this cannot make all this difference. Tlio disclosure is not «. pleasing one. The fixed deposits show the I ."Unlit gain of £110,266. but is nevertheless - satisfactory as disclosing the fact that 1 there is thai sum for which the owners ij have no immediate use The figures of c. each bank in respect to fixed deposits . show us under:— , ' June, June, 1917. 1918. f Bank. £ £ £ ' '- N. Zealand ... 6.965,462 6,781,188 182,274 dec. 1 Union 1,638,050 1,645,499 7,449 inc. > KS. Wales ... 2.220,909 2,236,714 15,805 inc. Australasia ... 972,530 1,108,970 136,440 inc.. ; National 1,972,788 2,061,885 89,097 inc. ' Commercial... 51,445 95,194 43,749 inc. ) 13,819,184 13,929,450 110,266 inc. 1 The Hank of New Zealand is the chief suf- ' fercr in fixed deposits, and the shrinkage ) shown, by' that institution is important, l Taking the fixed and free deposits to- . gether for the June quarter of each oi [ the past five years, wo obtain thu following::— Fixed free Total 1 June deposits. deposits, deposits. - quarter. £ £ £ > -1914 10,807,025 14,690,719 25,505.7-43 1915 11,208,777 17,436,379 28,645,156 p 1916 12,619,141 20,542,748 33,161,889 1917 13,819,184 23,380,996 37,200,180 | 1918 13,929,450 22,110,628 36,040,078 , Now we come to the advances, and axaiu l there is to be noted a very substantial iu--1 crease, a greater increase llian waß dis--1 closed lust year. The figures of the sev- : oral banks disclose the position:— , InJunc, 1917. Juno, 1918. crease. '. Bank. £ £ £ f X. Zealand ... 12,456,872 15,296,619 2,839,747 1 Union 4,062,919 4.379,713 316,794 ' N.S. Wales ... 3,216,016 3,867,776 651,760 • Australasia... 2.748,111 3,249,024 600,913 ; National 4,110,647 4,463,058 552 411 Commercial ... 215,051 307,117 92,066 26,809,616 31.563,307 4,753,691 , The clients of the Bank of New Zealand htve drawn very heavily on that iusti- ' tntion, and it may be that some part of ' this increase is duo to advances to those : taking up the last war loan. The dis- ■ counts exhibit a shrinkage of £226,193, and , this can be understood, for retailers are doing very well, and the. importing bouses ore obliged to restrict their purchases. 1 The discounts for the June quarter of ' each of tlie past live years show as under: June quarter. £ 1914 1,799,189 1915 1,441,430 1916 1,352,718 . 1917 1,470,687 | 1918 1,244,494 If we take the fixed and free deposits on the que hand, and the advances and discounts on the other, it will be seen that , the. excess of deposits has shrunk mater- , ially as compared with each of the three previous years. Tlio figures are as under: Excess of Juno Deposits. Advances, etc. deposits quarter. £ £ £ : 1914 25.505.744 23,938,855 1.566,889 1915 28,645,156 23,423,577 5.221,579 1916 33,161,889 24,268,340 8,893,549 . 1917 37,230.180 28,280,303 8,919,877 1918 36,040,078 32,807,801 3,232,277 The circulation and the coin and bullion are the next items to require attention. The circulation baa increased by £1,263,692 in the twelve months, or more than £1 per head, and the total circulation is ■ about four times as large as it was in 1 1914. The figures under the two heads are ■ given below:— i Coin June ■ Circulation, and bullion, quarter. £ £ 1914 .1.699,809 5.500.450 1915 3,824,902 6,750,140 1916 3,918,336 7,268,432 1917 4,890,803 8,355,526 1918 6,154,495 8,069,636 Coin and bullion have decreased by £265,890. but as against this it must be remembered that the banks hold large amounts in legal tender notes, apart from the ordinary notes and bills of other banks. Viewed on the whole, tlie position is not satisfactory, and the adverse showing is due entirely to the fact that the producers have been unable to dispose of all. their produce. Had this been realised the banking figures would have taken on quite a different aspect. Cußioins duties collected at the port, of Wellington yesterday amounted to £1649 :os. 3d. BliriTSTf COVEIiiNMENT HUTS AITSTIiAMAX ZINC. An agreement has recently been mad" between the President of the Hoard of Trade, representing. His Jlajesiy's flovornment. and fho Zinc, Producers' Association Proprietary. Lid., of Australia, for the ourohnse by Mis Majesty's fiovernment of the stocks of Australian •/.inc concentrates .existing at December 31. 1917, less reserves; and,, subject to the reasonable ■ protection of ' Australian requirements, the graduation from January 1, 1918, to the maximum extent, of 250.000 tons per annum for the period of Hie war and one year thereafter, and 300,000 to;;? per annum for the subsequent nine years. His Majesty's Government also secures an option over the balance of production subject to certain reservations, e.g., provision for tile requirements of Australian zinc refining works and flic fulfilment of existing contracts. The agreement, winch varies an earlier flffiw.menf by cnlargiiur the quantity and modifying the purchase terras, provides for a "flat- rate" of Trices no to the end of live years after the war. For the remainder of the period ntb''« will be determined by market renditions with the "Hat rate" o! the earlier period as a minimum.