BANK RETURNS

Dominion, Volume 13, Issue 16, 14 October 1919, Page 8

BANK RETURNS

BIG INCREASE IN DEPOSITS SIGNS OF PROSPERITY N There are sovoral interesting features in the banking returns for tlio September quarter. Tlio free deposits or current account balances nre larger than they wero a year ago by X5,G55,072, and the fixed deposits are greater by <£917,607, that is to say, there is at credit of the customers''of tlio banks an additional w£9,602,679. It is a huge sum and has been obtained by shipments of wool, meat, dairy produce, tallow, etc. The Government deposits are smaller by <£3,017,249 than they were twelve months ago, and this is not surprising in view of tho heavy commitments for the repatriation of troops. All classes of deposits compare as under:— Sept., 1918. Sept., 1919. Deposits. £ £ £ Govt 9,012.554 5,995,305 ' 3,017 249 dec. Free 21,646,245 30,331',317 8,685,072 inc. Fixed ........ 14,123.961 15,041,568 '917,607 inc. ■ 44,782,7® 51,368,190 6,535,430 inc. There is an increase of over six and a •half millions in all deposits, equal to about .£8 per head of the entire population. The movement in the freo deposits as they affect the several banks aro shown in tho table appended:— Sep., 1918. Sep.. 1919. Increase. Bank. ■■£ £ £ New Zealand... 10,286,910 14,575,W9 4,088,999 Union 2,820,820 3,920,812 1,099,992 N.S. Wales 2,562,642 3,609.099 1,046,457 Australasia ... 2,479,400 3,382,179 902,699 National 3,193,207 4,525,523 1,332,316 Commercial .. 303,186 617,795 214.609 ' 21,646,245 30,331,317 8,685,072 The gain shown by the Bank of New Zealand is nearly 50 per cent, of the total, but the greatest relative gain is shown by the Commercial Bank, with an increase of about 68 per cent. The expansion in the fixed deposits as already stated amounts to <£917,G07, and in this also all the banks shared, as disclosed below;—

Sep., 1918. Sop., 1919. Increase. Bank. £ £ £ New Zealand... 6,941,319 . 7,520,957 579,638 Union 1,658.443 1,736.317 77,874 N.S. Wales 2,252,745 2,321,055 68,310 Australasia .... 1,103,448 1,117,536 14,088 National 2,063,774 2,209,938 146,164 Commercial ... 104,232 135,765 31,533 14,123,961 * 15,041,568 917,607 • In view of the groat increase in credit that has taken place, it is surprising that mora lias not beon placcd at fixed deposit. Perhaps it is that tho holders of the idle credits anticipate a demand for money with an advance in interest rates, or it may ho" that it is necessary to have capital at call to meet encasements on account of imports, ivhich should expand. The aggregates of the free and fixed deposits for the September quarter for each year from 1914, are as follow;— Free Fixed Total deposits, deposits, deposits. Sept. £ I £ £ 1914 14,172,777 10,828,887 25,001.664 1915 17,545,863 11,609,066 29,154,929 1916 19,620,671 12,978,629 32,599.300 1917 21,567,821 14,139,815 35.707,636 1918 21,646,245 14,123,961 35,770.206 1919 30,331,317 15,041,568 45.372.885 The gain in the doposils during the war period was from three to four millions each year, except last .year, when tho increase was under .£70,000. , This year there is an abnormal expansion, due in part to the clearance of produce. Bank advances contracted by <£1,617,825. and it is surprising that it was not larger. The figures of the several banks show as under;— 1 . Sep.. 1918. Sep., 1919. Bank. £ £ N.Z 14.553,047 13,751,563 801,484 dec. Union - 4,123,931 3,928,493 195,438 tlco. N.S. Wales 3,589,169 3,334,513 , 254.656 dec. Australasia 3,441,920 3,365,481 76.4J9 dec. National ... 4,353,140 4.013,987 339.153 dec. Commercial 342,488 391,833 49,345 inc. 30,403,635 28,785,870 1,617,825 deo. The discounts disclose ifn expansion, being £120,967 more than a year ago, tho aggregates being ,£1,3G3,904, as against .JE1,212,937. Taking the free and fixed deposits together, and the advances and discounts together, the excess of tho former over the latter in each year is disclosed in the table appended:— EXC9BB Of Deposits. Advances, deposits. 1914 t- 25,001,664 24,462,676 539,008 1915 .. . 29,154 929 23,348,906 5,806,023 ' 1916 ...... 31:599.300 24,677,963 7.921,335 1917 35,707.636 28,415,451 7,292.185 1918 .. 35,770,206 ,31,646,632 4,123,574 1919 45,372,885 30,149,774 15,223,111 • The figures for this year are impressivo. The excess of deposits, that is, the amount lent by tho public to the banks, exceeds tho amount lent by the' banks to the public by .£15,228,111. The circulation and the coin and bultion aggregates are as under:— Coin and Circulation bullion. Sept. t £ £ 1914 2,012,569 5,823,575 . 1915 2,822,809 7,002 989 1916 4,329,953 7,498,250 1917 5,650,881 9,847,060 1918 6,235.344 8,146,798 1919 7,357,048 8.046,071 There is an increase of <£1.121.704 in the circulation, • and a decrease of .£100,727 in the coin and' bullion. The' growth of the circulation is very pronounced, and tho total represents roughly about JE7 per head. But from the total must be deducted the legal tender notes held by the banks and amounting to .£1,213,124. , , The figures, taken on the whole, disclose the fact that tho country is extremely prosperous, perhaps never so prosperous as it is to-dfiy. . The PBOple appear to have tho 1 money to spend, and probably this Christmas will 6ee a great expenditure on travel and the usual holiday pleasures.

Sept. 1914 1915 1916 1917 1918 1919