BANKING RETURNS.

Hawera Star, Volume XLVIII, 15 October 1924, Page 6

BANKING RETURNS.

LAST QUARTER'S RETURNS. SATISFACTORY RESULTS SHOWN. As compared with the returns for the quarter ended September 30, 1923, those for the quarter just closed show that the trading position is satisfactory, but at the same time it calls for extremely careful handling. The Dominion is seen emerging from the severe financial difficulties of 1921 and 1922, as will be manifest in figures set out hereunder, tor in those years the demands of the public on the banks were heavy and the advances or overdrafts substantially in excess of the moneys placed with the banks on current account and fixed deposits. The banks are really in debt to the public, whereas in June, 1921, the public, taking into account the deposits—both fixed and free—were indebted to the banks to the extent of nearly £9,000,000. The position then was as follows: £ Advances 54,385,485 Deposits 45,511,095 Excess advances 8,874,390 This heavy indebtedness was reduced to £4,593,946 at the end of the September quarter of 1922, and there was a credit balance in the public’s favour at the end of September, 1923, of £1,112,108, the excess of deposits over advances. How great has been the change effected in the relationship between the banks and the public may be gathered from the fact that while there was an excess of overdraft over deposits of £4,593,946 at the September quarter of 1922, the deposits exceeded advances-by £15.223.111 at September 30, 1919. The principal differences in the averages just received as between those for the September Quarter of 1923 are as follow: £ Government deposits less by ; 2,313,188 Free deposits less by 580,102 Fixed deposits more by 1,763.288 Advances less by 1,108,125 Bills discounted 'less by 11,817 Note circulation enlarged by : 1,985 Coin and bullion reduced by 84,149 The Government deposits are with the Bank of New Zealand only. They stood at £2,731,774 for the quarter in review, or £2,313,188 less than at the end of September, 1923. The free deposits on current accounts in each of the six hanks are here given, showing that they have deei'eased in all hut two of the institutions, the Bank of Australasia and the Commercial Bank.* Tbev compare as follow. FREE DEPOSITS. Sept., Sept., T , , 1824. 1923. Bank. £ £ New Zealand 11,857,625 12,283,14? Union 2,945,717 3,094,66? New South Wales .- 2,766,326 2,839,932 Australasia 2,560,097 2.537,932 National 4,252,692 4,298,840 Commercial 838,180 746,55 F £25,220,637 £25,800,73! It is at first glance surprising that there should be >a decrease of over half a million, considering the high returns from produce; but probably these have been utilised, to a large extent, in reducing, if not liquidating, liabilities. The fixed deposits, on the other hand, have increased in the . case. of every hank hut two, as will he seen in the table following: FIXED DEPOSITS. Sept., Sept., ~ . 1924. 1923. Bank. £ £ New Zealand 10,292,498 9,083,071 ” nlo, ‘ ~ 2,242,849 2,473,25: New South Wales 2,690,322 2,417.482 Australasia 1,555,121 ],334;257 National 2.876,537 2.577,65 r , Commercial 244,058 251,874 £19,901,385 £18,138,097 The steady growth in deposits, as shown in September returns oh the past few years, including the profitable “war years,” are as follow: . , -Etee Fixed - Total Sept. Deposits. Deposits. Deposits, quarter. £ £ £ 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 43,372,885 1920 36,486,999 • 16,644,693 53,131,692 1921 26,773,325 16,672,339 43,445,663 1922 24,498,152 17,463,714 41,961,866 1923 25,800,739 18,138,097 43,938,836 1924 25,220,637 19,901,385 45,122,022 Advances ,or overdrafts show an increase for the quarter when, compared with the. returns for September, 1923; but this is natural, considering the expansion of the export trade and the growth of production and commerce of the Dominion generally. The position of the banks in this respect are seen m the following figures: ADVANCES!. ’ 1924. 1923. T, , Sept., Sept., Bank. £ £ New Zealand 18,485,129 17,513,579 Union 5,210.704 5,273,482 New South Wales 5,005,229 4,823,338 Australasia 4,923.948 5.252,206 Commercial 1,084,291 926,438 £42,519,581 £41,411,456 The increase for the year is slightly over £1,100,000, which should not occasion disquiet. Bills discounted are slightly less at £1,403,455, as compared with £1,415,272 for (September 30. 1923. * The combined free and fixed deposits as compared with combined advances and discounts affords the satisfactory result of an increase in the indebtedness of the .banks to the public of £1,198,986; or, nut in another way. the public has that much more to its ■credit than it owes to the banks. This is seen in the following figures, which show the position as at September 30 for the past six years: „ . Excess oC ss-Pti. Deposits. Advances. . Deposits, quarter. £ £ ‘ xt 1919 45,372,885 30,148,774 15.223.111 1920 53,131,6.92 39,017,808 1-1,313^784 1921 43,445.663 48,039,609 4.593,9461922 41,961,865 42,924,448 1,032,482* 1923 43.938,835 42,826,728 1,112,108 1924 45,122,022 43,923,036 1,198,986 * Excess of advances. The returns 5 of notes in circulation show a slight expansion for last quarter, when compared with that of 1923, viz., £6,356,497, or £1985 more; the holdings by the banks of coin and bullion are also less, viz., to-day at £7,819,102, as compared with £7,903,251 last year, a decrease of £84,149. The deduction to be made from the above figures is that the country is generally financially sound. Importing has been and continues to be heavy, hut exports are enhanced in value, and the prospects for most of them bringing remunerative prices are exceedingly bright, especiallv so in the case of wool and dairy produce. All will depend, however, upon the purchasing capacity of the British markets (especially as to butter, cheese, and meat) during the coming winter. These markets, however, will require to be skiltully handled; but so far as the public s relations with the hanks are concerned the position disclosed in the above figures, all things considered, justify the future being faced with cbntiaence. providing there is no serious ■set-hack in. prices.—Post.