BANK RETURNS.

Hawera Star, Volume XLVIII, 15 July 1924, Page 3

BANK RETURNS.

FIGURES FOR JUNE QUARTER. The banking returns for the second quarter of the year show the .trade conditions to be very little different to what they were twelve months ago, and if there is one outstanding feature it is the large increase in the fixed deposits. The aggregates of the deposits compared with those for the corresponding quarter of last year show the following movements: .tune, 1923. June. 1921.

There is a very great contraction in the Government deposits, but that is to be expected in the second quarter of the year, when there is little, revenue coming in. Rut. this shrinkage is largely offset by the exnnnsion in the fixed deposits by £1,885,80.1. The bulk of this increase is most likely the money of local bodies, the proceeds of recent loan flotations not immediately required for expenditure. The free deposits or current account balances show the trifling increase of £60.556, showing that trade is no bettor than il was a year ago. Tn the March Quarter the free, deposits totalled £28,436,1(33, or £99,-103 more than in the June quarter. The free deposits held bv the several banks and the movements in their respective totals are .shown in the table appended : —■ June, 1923. June. 1924. Bank. £ £

28,276,204 28,336,760 The National Bank shows a large increase, biit relatively not as great as that of the Commercial Bank. The fixed deposits show the sub r stantinl increase of £1,885,804, and the figures of the several hanks compare as under: —

‘ 17,400,748 19.292,552 * The Union Bank and the Commercial Bank show small contractions, but the . others exhibit increases, especially the Bank of New Zealand, and this seems to confirm the view that the increased fixed deposits belong mainly to local bodies. y . The aggregates of the fixed and full deposits for the June Quarter of each of five years are given below:

There is a big change since 1920, when the boom was still with .us; it was a different tale in 1921 and 1922. . The most interesting features of the banking returns are the advances and discounts, or the accommodation the banks have been called upon to provide for their customers. Compared with a year ago, the advances exhibit the substantial increase of £2,181,899, but compared with the March quarter there is a decrease of about £2,000,000. The figures of the several hanks compare as under: —■

■10,227,091 42,108,993 The Bank of Australasia shows a slight contraction, but the others show substantial, increases. There was a. shrinkage in the discounts amounting to £7587", due entirely to the. reduction of the Bank of. New Zealand’s bills. The figure's of the several hanks show as under:—-

1,484,180 1,476.593 The aggregate of the advances and discounts for the June quarter of each of five years show as under: Fixed Free June Advances. Discounts. Totals.

In 1921, when the full effects of the slump were felt, the hanks strained their resources in-their efforts to help their customers, while at the same time their deposits were contracting. Comparing i lie movements of the advances and deposits for (ho June quarter of each of five years we get the following:— Etxeess of June Deposits. Advances. 'Deposits, quar. £ £ £

The aggregate of the note circulation is £(>,'.’>-{3.119, as compared with £0,741,077, a shrinkage, of £98. 008, The banks, however, hold a certain amount of legal tender, and if this is deducted from the circulation the actual note circulation in the. past (piarter was £0,347.2-13. as compared with £6,322,880 in the corresponding quarter of last year, and hero wc get further evidence that trade is no better and no worse than it was last year. There doers not appear to be anything outstanding in the returns, hut it is satisfactory to know that business is being maintained at a fair level, and the fact that the deposits now exceed the advances by a substantial amount is indication that conditions are easy.

Deposits. '£ £ Government .. . 0,409,011 8,977 321 Free . 28,276,204 28,388 760 Fixed . 17,406,748 19,292 582 02.091,996 51,606 633

New Zalancl ... ] 3.102,589 12.917,455 Union '.. 3,519,170 3.435,321 N.S. Wales .... 3,131,939 3,130,353 Australasia .... 2,656.563 2,762,297 National 5.121,408 5.266.43S Commercial .... 744,535 824,896

June, 1923. June, 1924. Bank. £ £ New Zealand . .I.. 8,705,119 9,911,512 Union .... 2.301,595 2,209,631 N.S. Wales ... .... 2,380,597 2,602.493 Australasia ... .... 1,205,682 1,538,838 National .... 2,561,426 2,779,854 Commercial .. 262,329 250,224

Fixed* Free Total June Deposits . Deposits. Deposits. quar. £ * £ ' £ 1920 16,243,911 3S,354,181 54.598,092 1921 16,246,462 29,264,633 45,511,095 1922 16,342,413 25,046,473 41,388,886 1923 17,406,748 28,276.204 15,682,952 1924 19,292,552 28:336.760 47,629,312

June, 1923. June, 1921. Bank. £ £ New Zealand .. ,17,209,307 18,272,735 Union ... 0,103,250 5,103,070 N.S. Wales . .. --1,675,680 5,048,488 Austraalsia . ... -1.981,486 4,912,202 National ..... ... 7,395,148 8,005,845 Commercial . 805,223 1.000,053

Bank. • June, 1923. June, 1921. £ £ New Zealand . 9(10,430 370,889 Union 01,899 52.269 N.S. Wales ... 90,090 160,051 Australasia ... 120,339 126,243 National 209,623 219.457 Commercial ... 45,187 47,681

quar. £ £ £ 1920 33,457,188 1.332.393 34,789,581 1921 51,449)526 2.935,959 54,385,485 1922 44,438,917 1,717,017 40,155,934 1923 40.227,094 1.484,180 41.711,274 1924 42,408,993 1.470,593 43.S85.580

1920 54.498.092 34.789.581 19.808.51 i 1921 -Jo. 511.095 54.385.485 8,874,300* 1922 41,388,886 46.155.934 4.767.048* 1923 45,682,952 41,711.274 3.971.678 1921 4 7.629,312 43.885,586 3,713.726 * Excess of advances.