The Hokitika Guardian THURSDAY, JULY 13th 1922 BANKING RETURNS

Hokitika Guardian, 13 July 1922, Page 2

The Hokitika Guardian THURSDAY, JULY 13th 1922 BANKING RETURNS

' The .averages of, the six banks trad,i ing in the "Dominion for the quarter 1 endec’ ,Tune 30th.. comments a Ve'-

lingtoti writer, show but slight increases in deposits, both fixed and live, and advances (or overdrafts), combined with tolls discounted show slight reductions when compared with the returns for the quarter ended .March 31. But it is customary to compare one quarter’ with that of the year preceding, therefore, when comparison is made j between the figures for the second quarter of 1922 with those for the quarter .ended June 30. 1921. if is seen that tile hunks have made great headway during Lite past twelve months in the reduction o! overdrafts or advances; although the money on current account is less, with a slight increase ill the amount at public credit under the heading of fixed deposits. The combined I're,, and fixed deposits for the second (pintter of 1922 were 041.338,881. as compared with £45,511,095, a falling of! since last year of £4.122.213. It is in the free deposits or current accounts P’nt the drop is to he noticed. These were £25.046.470 for .Time' 30 hist, as compared with £29,264, 633 for the Julie quarter of 1921, a reduction of £4.218.103; the fixed deposits have increased by £95.949. Combining advances with hills discounted, there is a total for the quarter just closed of £16,155,929. The average for the June quarter of 1921 under those two headings was £54,385,485—the highest point they had ever reached before. The causes art* too well known to need further remark than that June 1921 will probaldv Ik* remembered as the most depressing period in the history of Now Zealand commerce and finance. At that time, n year ago, the advances, including discounts, were ill excess of deposits by £8,874.39(1 an.] this from an excess of deposits over advances of £l9 808.511 for the .J une quarter of 1920. Last year the pyramid stood on its apex; this .June quarter it is to be seen leaning well over in the direction of its original position. True, the overdrafts (or advances and discounts') arc still £4.767,048 more than the deposits, Imtli free and fixed; hut the indebtedness of the public to the hanks at the end of the second quarter is less by over £8,000,000 than it was at Inst June quarter. The banks are. obviously “nursinig” many of their customers through an exceedingly difficult period; hut great ns is the need for continued eare. the position of t -e country as disclosed in the hanking figures is very much better than it was twelve months ago. Fortunately the balance of trade is in favour of the Domonion. For the five months ended May 31, 1922, the value of the principal exports of th P country was £22,056.212, and of imports £13.803,492, a difference to credit of £9,252,729 on these figures. The production of butter and cheese has been phenomenal, and prices for some weeks past have been unexpectedly high for hutter, and highly remunerative for cheese. The dairy season nominally closes on April 30th, hut it has been prolonged. It begins ugaiti in August and from that time onwards contributes Its wealth to the country, with wool coining in in November and meat !( month later. It is rush indeed to prophesy the markets hut those for wool unit meat together, with assistance in the shape of lower freights, should lx* fairly satisfactory in the statistical showing. The interim figures show a shortage this year of over 1,000.(MX) sheep in the Dominion. This will represent a reduced s. earing, but that may contribute to a slight increase in the price of wool. It is the hank returns for December next, that .should show the Dominion yiruvged from the slpugh in which over-importing and u fall of prices of main products had plunged it this time last year. The returns for tile March quarter of next year, however, should provide even more satisfactory evidence of the recii|x*rnlion of the Dominion from the severe setback it received last year. With prudence, economy and reasonably good markets for main products, the excess of overdrafts over deposits should entirely disappear bptore the i'll i of this year, or, at mostby the end °f the first quarter of 19*23.