The Feilding Star. THURSDAY, AUGUST 14, 1890. Bank Returns

Feilding Star, Volume XII, Issue 25, 14 August 1890, Page 2

The Feilding Star. THURSDAY, AUGUST 14, 1890. Bank Returns

+ We have now before us the bank returns for the quarter ended June 80th, and for the information of our readers we compare them with the returns for the aan>e period in 1889. In the following extracts we leave out shillings and pence for the sake of brevity In -Tuue 1889, the note circulation of the hanks w*s £903,017; in Juno, 1890, jKyj7,sci7, an. iuoreswd of £24,5>i0,

which is a satisfactory evidence of an advance in the spending power of the people. The Government deposits have decreased from £494,719 in 1889 to £408,864 in 1890, but that only moans £90,U00 has heeu expeuded in the ordinary routine of management. Deposits nut bearing interest have incieased from £3,419,008 to £3,643,---637; and deposits- hearing iuterest from £7,633,577 to £8,438,910 which can only be looked upon as another eminently satisfa tory evidence of the steady increase of actual potential wealth in the colony. In 1889 the coined gold and other metals in bullion and bars in the coffers of the several banks was £2,192,980; and iv 1890, £2,480,900, a startling increase of nearly £300,000, or 10s per head on the whole population of the colony. Bills discounted ia 1889 were £2,865,---261, and in 1890 they had fallen to £2,575,072, from which we may draw the conclusion that consumers are now largely making their purchases for cash instead of on credit and thereby forcing the retailers to buy their goods on bills which the importers or manufacturers in their turns have to get discounted at tie banks. The over drafts which in 1889 were £l 1,306.420 have now advanced to £11,465,055. Although the increase is comparatively trifling yet it is an indication that the banks are seeking outlets for that money which they are unaMe to employ more legitimately in discounting trade bills. We know it is the fashion in some quarters to look upon heavy discounts as an evidence of com mercial prosperity, but we do not agree with that opinion. VVe hold that heavy discounts are an unfailing sign that the trade of the country has been forced beyond its natural limits, that is beyond the capacity of the acceptors to n deem their bills wiihout sacrificing cap t il. Taking these returns on a whole they carry with them incontro vertible internal evidence of the wonderful prosperity of this grand country ; of its capabilities, and its recuperative powpr*.