THE BANKING RETURNS

Dominion, Volume 12, Issue 170, 12 April 1919, Page 10

THE BANKING RETURNS

EXPANSION Or DEPOSITS AND ADVANCES.

A STRONG POSITION.

Tlio salient features of tho banking returns for the first quarter of the current year, compared with tlio figures for tlio corresponding f]iiartor of last year, show that tlio Government deposits decreased bv while tlio free deposits expanded by .£2,749,379, and the fixed deposits by ,£593,9-19. The advances in- ] creased by ,1;2,C2-i,GOI, and the discounts : by ,£261.147. Comparing tho aggregate , figures for the two quarters we get tho following:— Deposits. Mar., 1918. £ Onvt 9,706,949 8,055,841 1.551,108 dec. Vreo .. 21,614,302 24,363,681 2,7-19,379 inc. .fixed 13,891,196 14,485,14-5 593,949 inc. 45,212,447 46,904.667 1,692,226 inc. The increase in tho free deposits is large, being more than two millions greater than tho increase shown in. 1918 over the preceding year. All tho banks shared in the as the following table will show:— Mar., 1918. Mar., 1919. Inc. Banlt. £ £ £ New Zealand ... 10,245,118 11,556,213 1,311,095 Union 3,020,162 3,264,249 244,087 NS Wales ... 2,709,318 2,914,635 205,358 Australasia 2,345,585 2,698,780 363,195 National 3,036,943 3,536,965 660,024 Commercial ... 257,176 342,768 85,612 21,614,302 24,363,691 2,749,379 The National Bank shows relatively the largest gain, but thero is an excellent improvement all round. The fixed deposits are larger thnn Inst, year, and in this also all the banks have 'shared, as the table appended shows:— Mar., 1918. Mar., 1919. Inc. Bank. £ {few Zealand .... 6,839,823 7,157,547 31/,/24 Union 1,597,660 1.707,118 109,438 N.S Wales 2,213,512 2,273,364 69,853 Australasia, ... 1,093,085 1,0v3,256 5,171 National 2,062,36? 2,127,892 65,525 Commercial 84,729 ■ 120,968 36,259 13,891,196 14,485,145 593,949 Ever since theVar the aggregate tf the free and fixed deposits has steadily increased, and this is shown below-.— Free Fixed Total March deposits, deposits, deports. er ." 13,475,771 10,554,479, 24,030,250 1915 15,958,732 10,870,567 26,629,239 1916 19,091,949 12,182,104 31,274,503 1917 20,970,702 13,355,838 34,3;6,540 1918 21,614,302 13,891,196 35,505,498 1919 24,363,681 14,485,145 38,648,826 Turning to tho advances there is to be noted an increase of .£2,624,601, in which all the banks shared, the figures showing as under:— Bank. - £ £ • £ Mar., 1918. Mar., 1919. Inc. New Zealand. ... 13,357,116 14,781,838 1,424,722 Union 3,998,828 4,094,614 95,786 N.S. Wales 3,319,123 3,677,904 358,781 Australasia ... 3,176,371 3,465,714 289,343 National 3,976,277 4,240,593 2/0,216 Commercial ... 266,716 462,469 185,753 28,094,431 30,719,032 2,624,601 The discounts exhibit an increase this year, while last year there was a shrinkage, and it is hard to account for these movements. The discounts in the aggregate are small, but perhaps the time is , not far distant when the bankers will - have their Bill portfolios comfortably filled. The discount figures of the several banks compare as under-.— Mar., 1918. Mar., 1919. Bank. . £ £ £ l Now Zealand 272,834 ' 884,453 166,619 Mc. } Union 104,762 65,687 39,075 doc. N.S. Wales .... 88,402 111,989 23,587 inc. 1 Australasia .... 109,065 144,656 35.591 inc. National 167,386 199,572 32,166 inc. l Commercial ... 26,016 78,255 52,239 iuo.

1,223,465 1,454,612 261,147 ino. The Union Bank is the only institution to disclose a shrinkage in .its discounts. Taking tko fixed and free deposits together, and the advances and discounts together, the excess of the ono over the other is Riven in the table below:—

Excess of of March Deposits. Advances, deposits. v j "IJM 01 / ... 23,6(1,750 363,500 ®' 1915 ' 26,829,239 23,740,562 3,088,677 " 1916 ! 31.W4.053 23,733,892 7,540,161 1 1917 34,356,540 27,694,930 6,661,610 w 1918 35,505,498 29,317,896 6,187,602 p 1919 38,848,826 . 32,203,644 6,646,182 p li'rom 1916 the advances have grown far n more rapidly than the deposits, and this may ho attributed to the higher costs lv of commodities and labour. It requires b a good doal more capital now to con- B duct a business than was needed during ti the first year or two of tho war. o The note circulation continues to expand, the total for the past quarter being p ,£536,062 moro than in March, 1918. I'ho j odin and bullion shows an increase of j .891,811, and is considerably more tuan f, the note circulation. Tho table Riven j below is interesting:— _ • ji MaTcli Circulation, Coin and Bullion. i Q sa tw : l.ew I 1915 '. 2,639,585 6,420,559 f 1916 3,171,553 7,120,854 1 1917 4,637,451 7,863,635 1918 5,915,529 7.954.188 e 1919 6,512,191 . 8,075,999 .The growth of tho circulation discloses i tho influence of the war, and the ex- 1 pansion of credit. The circulation last 1 Quarter was four times what it v, as in i 191-1, and may still further incroase be- t fore there can bo any effort made to i bring it back to normal. ... 1 The figures as a whole are satisfactory, i and disclosc a continuance of tho pros- ] perity that we have become accustomed ] to With the largo amounts at credit f the transition period which has already - begun should not causo any trouble. | There must, however, bo increased production, for when commodities revort to their normal level it will require a great deal more than we aro exporting now to give us our present measure of prosperity. We have contracted heavy obligations during the war, and these will be a drag upon us unless wo can substantially increa6o the volume of C'lir exports. • . _________