The Fielding Star. TUESDAY AUGUST 5, 1884. Banking Statistics

Feilding Star, Volume VI, Issue 22, 5 August 1884, Page 2

The Fielding Star. TUESDAY AUGUST 5, 1884. Banking Statistics

♦ Many persons are in the habit of complaining of the want of liberality on the part of the banks to the public, but as a rule they do so in utter and blind ignorance of the real state of affairs. We will endeavor to show, from the quarterly returns up to 30th June last, that the banks have on the contrary been a little too liberal, and have, in point of fact, as a whole been over trading. The total amount of indebtedness of the banks to the public in this Colony was £15,489,223, and the public was indebted to the banks £15,788,739. The first amount includes the amount of £5,850,000 of paid up capital. These figures show therefore that the banks have advanced say £299,616 more than they were legitimately entitled to do under any circumstances whatever. Of course it may be said that the coin and bullion on hand, which amounts to £1,916,141 8s lOd, is a very good setoff against this excess, and probably as far as the mere figures go it is, but we are not at all clear that this is actually in the Colony, or on shipboard in transitu, or in the hands of Head offices in the other Colonies, or in London. And against the bullion is also to be put note circulation, which amounts to £1,009,460, and bills £52,781, which make a total of £1,062,241, which was not included in the larger totals in order to keep advances, properly so called, clear and distinct. These figures show that the banks have not only been exceptionally liberal to the public, but have almost passed the limits to which with prudence they could be extended. The only real stays which they have had are the reserve funds, the collective amount of which is £3,260,069, and which is the backbone of the solvency of the institutions. Every | sixpence of their capital, and the sums ! placed at deposit, whether at interest j or call, has been placed at the disposal \ of the trading public. One result of j such liberal policy has been that during even the dullest times, the shareholders have been in the receipt of magnificent dividends, while the aotual losses of the companies have been comparatively trifling, this latter being in a great measure the outcome of "prudent management and good securities.