BIG BANKING FIGURES

Dominion, Volume 13, Issue 247, 13 July 1920, Page 6

BIG BANKING FIGURES

_ * JUNE QUARTER SHOWS FURTHER EXPANSION HEAVY INCREASE IN DEPOSITS ADVANCES ALSO CLIMBING NOTE CIRCULATION NEARLY £8,000,000 The banking returns for the June quarter, compared witlr the figures for the coiresponding quarter of Inst year, show very much the same, movements as weredisclosed in the comparison of the March quarters of the two years. There is again a, substantial expansion in all classes of deposits, but particularly in the free deposits or current account"bnlftnees. The advances have increased and tho discounts have contracted, while the note circulation is larger and the com arid bullion less. The outstanding features, in comparison with last vear, may bo summarised as follow.— ' Govt, deposits increased by 761,346 Free deposits increased by 10,101,598 Fixed deposits increased by« 1,490,565 All deposits increased by 12,353,509 Advances increased by 2,569.459 Discounts decreased by .1 190,585 Circulation increased by 699,944 Coin and bullion decreased by ... 283,299 These movements are on the whole extremely satisfactory, and indicate that the country is still revelling in prosperity. Dealing first' with the deposits, the OEgregates compare as under:— Juno, 1919. June, 1920. Increase. Deposits. £ ' £ £ Government 7,617,818 8,379,164 761346 Free 28,252,583 38,354,181 10,101,598 Fixed 14,753,346 16.243,911 1,490,565 50,623,747 62.977,255 12,353,5C9 In the March quarter there was an increase in the total deposits of £12,503,469, the aggregate in that quarter being £59,'408,136, while it is now tm increase of £3,569,120. The free deposits m the March quarter amounted to .£34,814,896, as against £33,354,181 for the June quarter, so that there is now an increase of £3,539,285. The Government doposits have .shrunk from £8,743,045 to £8,379,1G4. The increase in the free deposits is in part duo to the further realisation of produce. All the banks shared in the increase in the free deposits, as the table appended shows:— June, 1919. June, 1920. Increase. Bank. £ £ £ New Zealand 13.332.864 17,621.696 4,288.832 Union 3,772.874 4,868.074 1,095.200 N.S. Wales ... 3,444.970 4.740,988 1.295.018 Australasia .. 3,184,421 4,281,130 1,096,706 National 4,100,186 6,012,527 1,912,341 Commercial . 417,265 • 829,766 412,501 28,252,583 38,354,181 10,101,598 The Bank of New Zealand exhibits an increase of nearly 33 1-3 per cent,, as do the three old-established Australian banks. The National Bank shows an increase of nearly 50 per cent., and the Commercial Bank has nearly doubled the volume of its freo deposits. The movements in the fixed deposits disclose tho fact that two banks have reduced their amounts. This will be seen in the table appended :— June, 1919. June, 1920. Bank. £ £ £ New Zealand 7,282,735 8,302.143 1,019.408 inc. sni°°5 n i°° • 1,750,153 1,736.982 13,171 dec. N.S, Wales ...2,300,721 2,546,167 245,446 inc. Australasia 1,118.244 1,105,102 13,142 dec. National 2.175,605 2,367,626 192,021 inc. Commercial 125,888 185,891 60,003 inc. 14,753,346 16,243,911 1,490,565 inc. The Bnnk of New Zealand secures the larger portion of the increase. The fixed and freo deposits for the June quarter of a series of years show as under:— Fixed Free Total June deposits, deposits, deposits, quarter. i £ £ £ 1915 11,208.777 17,436,379 28,645,156 1916 12.619,141 20,542,748 33,161.88'. 1917 13,819,184 23,380,996 37,200.180 1918 13,929,450 22,110,628 36,040,078 1919 14,753,346. 28.252,583 43,005,929 1920 16,243,911 38,354,181 54,698,092 The total deposits are now only £2,000,000 short of double tho amount in June. 1915. Turning to tho advances, the total shows an increase of £2,569,459, while in tho March quarter the increase was only £42,822, and in June last year £675,578. The advances made by each bauk compare as under;— June, 1919. June, 1920. Increase. Bank. £ £ . £ New Zealand 14,911.969 15,350,945 438,976 Union 4,278,263 4,569,856 291,593 N.S. Wales 3,596,484 3,867,100 270,616 Australasia 3,237.797 4.068.441 830.644 National 4,430.700 5,113.475 682,775 Commercial 432,516 487,371 54,855 30,887,729 33,457,188 2,569,459 The increase is a very substantial one for tho June quarter, and is in some degree an indication that the future demands on the banks will be very large. Exporters of .produce must now arrange their own finance, and whilo butter and cheese may be sold for cash, f.0.b., the same will not hold with meat and wool, which involve many millions. It is no doubt in anticipation of this probable demand that tho Tanks have raised their rates and made the conditions stringent. Tho discounts total £1,332,393, as'against £1,522,978 in June, 1919, a decrease of £190,583. , The aggregates of the advances and discounts for the June quarter of a series of years show as under:— Juno Advances. Discounts. Totals, auarter. * £ £ 1915 21,982,147 1,441,430 23,423,577 1916 22,915,622 1,352,718 24.268.340 1917 26.809.616 1,470,687 28,280,303 1918 31,563,307 1,244,494 32,807,801 1919 30,887,729 1,522,978 32,410,707 1920 , 33,457,188 1,332,393 34,789,581 The increase sinco 1915 is entirely in the advances, for the discounts havo actually contracted. If we tuko the fixed und free' deposits together, and tho advances and discounts together, the excess of the one over the other is shown in the table appended:— June Deposits. Advances. Deposits, quarter. £ £ £ 1915 28,645,156 23,433,577 5,221,579 1916 33,161,889 24,268,340 8,893,549 1917 37,200,180 28,280,303 8,919,877 1918 J6.040.078 32.807,801 3.232,277 1919 43,005,929 32,410,707 10,592,222 1920 54.598.092 34.789.581 19,808.311 In the March quarter, the excess of deposits was £18,623,049, go that another million has beon added to the total. The excess is at present very large, but-it will shrink presently as imports increase and the demands for accommodation expand. The note circulation and the coin and bullion totals compare as under*— Juno Circulation. Coin*. Bullion, quarter. £ £ 1915 2,824,902 6,750,140 1916 3,918,356 7,268,432 1917 4,890,803 8,355,526 1918 6,164,495 8,089,636 1919 7,226,530 8,024,147 1920 7.926,474 7,740.848 The note circulation shows an increase of £699,944, and the coin and bullion n decrease of £283,299. The volume of metal falls short of'the total note circuI lation, but against this must be stated that tho banks< hold £1,062,166 in legal tender notes, and if this be deducted from the circulation it will be seen that the metallic rcsorvo is more than ample to cover the note circulation. In the March quarter- tho circulation totalled £7,765,559, so that during the quarter there has been an expansion of £160,915. Thero can bo no question as to the satisfactory 'character' of the banking figures, for they weave the word prosperity. The concern of bankers, merchants and others is as to tho immediate future. With tho close cf the Imperial commandeer, new conditions have arisen and will arise, and no accurate estimate can be formed as to the ultimate outcome. If, under the circumstances, u measure of caution is being displayed it | is just what "should be expected.