THE BANKING RETURNS

Dominion, Volume 12, Issue 248, 14 July 1919, Page 6

THE BANKING RETURNS

MONEY PLENTIFUL DEPOSITS SHOW AM INCREASE The banking returns for the June quarter disclose movements that one would naturally expect would result from the increased shipping tonnage that has been made Available, A year ago the German offensive was at its height and the outlook for the Allies was threatening. Every available British steamer was diverted" t» the United States for the carriage of troops, munitions, and foodstuffs, and the distant dominions had to put up with the minimum of tonnage. ' Such vessels as visited our shores, apart from he transport of troops, could take only the most essential products, with the result that such commodities as tallow and hemp could not be shipped at all.l During the past six months a great many vessels have come to. Now Zealand, and it has been possible to ship large quantities of wool and tallow. Hence we find that compared with a year ago there is a substantial increasu 'in the amount of the fro anil bx«i deposits and a fair reduction in thn volume of advances. The Government deposits show a big shrinkage, but this is more than made good by the other deposits. The position is disclosed Hi Ihe following table:— June, 1918. June,l9l9. Deposits. £ - £ , ,A«j Government RC4U74 7,617.818 6,4tt,«6 dec. Free 22,110,628 23,252,£53 6,141,905 inc. Fixed 13,929,450 14.753.K6 c 23,696 inc. 60,101,352 50,613,747 622,395 inc. The Government deposits are about one, half of what they were a yeur ago, indicating that previous war loan funds are being used up. The growth of the free deposits is verv substantial, and is the result of the export of products outside of the Imperial commandeer. The position of the several banks' in Tespect to free deposits is shown below:— . InJune, 1918, June. 1919. create. Bank £ £ £ New Zealand ... 10,634.243 13,332,564 2,958,621 Union 2,957.825 .3.772.874 815.M9 N.B. Wales 2,735,027 ' 3.444.97 709,940 Australasia 2.370,548 3.184424 8 3.576 National 3,141,562 4.100.186 fc5.624 Commercial 271,423 417.265 140,842 '22,110,628 28,152,583 6,141,955 All the banks have shared in the increase, and the gain appears to be proportional. The aggregate expansion w very satisfactory. The fixed deposits show an increase ot ,£823,896, as disclosed in the table appended :— , i lII- .' June, 1918. June, 1919. crease. Bank £ £ • New Zealand ... 6.781,163 7.282,735 501,547 Union .: 1,645,493 1,750,153 104,654 N/B Wa es ...... 2 256,714 2,300,721 64,007 Australasia ... 1,108.970 1,118.244 9.2(4 National 2061835 2175,605 113,720 Commercial . '.95,194 125,686 -30.694 13,929,450 14,753,346 023.696 Tho fixeland the free deposits taken together over a period of ye.urs show movements as under:— . Fixed dcp. Freo dep. Totals. ■Tiinp £ £ £ M? 11,208,777 17,436,379 286«,156 1916 12619,141 20,542,748 33,161.889 1917 . 13.819184 23,380,996 37,200,180 1918 13,929,450 22,110,628 36,040,073 1919 " .' 14i753,346 28,252,583 43,005,929 Since 1915, or during the past foui years, tho nggrcgafo deposits increased by £14,360,773, of which the free deposits accounted for .£10,816,204, a«« tne fixed deposits for -C3,514,5G'J. It is but natural to expect a ehrinkago in tho advances, the position being as under:— June, 1918. Juno, 1919. Bank £■ £ • * New Zealand 15,296,619 14,911,969 384,650 dee. UnTon 4 579,713 4,278,263 101,450 dec. NS Waloa . 3,867.776 3.596.484 271.292 dec. Australasia 3 249.024 3,237,797 11,227 dec. NaSel .... 4 463 058 4 430.700 SWHdec. Commercial . 307,117 432,516 125,399 inc. 31,563,307 30,887,729 675,578 dec. Tho Commercial •Daulc is the only institution to ehow an increase. Ihe discounts show an expansion, and the aggregate is the largest w have had for fivo years, as is shown, in the-table following:- . %'■ ~ 1/41,430 1916 1,352,718 9? .;. 1.470.657 9 8 • 1,244,494 1919 1,522,578 The - aggregates of tho advances and discounts for a- series of years show as under:— • . , _. . Advances. Discounts. Totals. WU" 21,982,147 1.441,430 33,&,577 {l\t ■ 22,915,622 1,352,718 24,268,340 «17 26,809,616 1,470.637 28,280,303 1918 '"21 31563,307 1,244.494 32,807,801 1919 •;." 30,887,729 1.522,978 32,410,707 The amounts lent by the public to the banks as shown by the deposits, and the amount lent by the bi.nks to the public as disclosed by the advances and discounts, provide an'interesting table, as under:— . „ „ ' Excess or Deposits. Advances, deposits. Time £ £ £ '19?5 . 23,645.156' 23,423,577 5.221,579 1916 ....'.. W161.889 24,268,340 8,893,549 191? 37.200,180 28.230,3«3 8,919,377 1918 ""'"' 36.040,078 32,807,801 3.232,277 / 1919 !!'.'.'.'.."'.'. 43,005,929 32,410,707 10,595,222 There is this year u lavgei excess ot deposits than in any previous year, and the whole of this credit will be needed, for tiio Government had still to' be provided with very large amount/;, and thii money'must be obtained in New ZeaNo'w we come to tho circulation and the corn and bullion, and the position at the June quarter of each of five years is disclosed in the table appended:Coin and Circulation, bullion. •Time. £ £ 1915 2,824,902 6,750.140 1916 ..„ 3,913,336 7.268,432 lot? 4,890,803 '8,355,526 1918 "." 6,154,495 ' 8,089,636 1919 ". 7,226,530 8,024,147 There is again a marked increase in the circulation, and tho total is abount two and a half times what.il was,iii 1915. The coin and bullion show a slight shrinkage, but notice cannot be taken of this, because the banks hoW about ,£1,000,000 of legal tender notes. Tho banking position is very satisfactory, and the .indications are that as the produce in store is realised the volume of the deposits will, expand, but.' when merchandise can be freely imported there will be a very great change.