The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, APRIL 26th, 1923.

Hokitika Guardian, 26 April 1923, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) THURSDAY, APRIL 26th, 1923.

THE RANKING RET CRN'S. Tin: economic conditions of the country, notes the Mercantile Gazette, are lull.v reflected in the banking returns tor the first quarter of the year. It is unnoccssnry to remind the business men and the farmers of the slump in 1020-21, for il must he a painful recollection to iiirsl people. During that period a very severe pressure was put upon the hanks, for the demand for credit was insatiable. The pressure was felt by the Ranks ill two ways. for those who had technically lent money to the hanks, tlau is tie depositors, called :o a very la rye proportion of their loans, which the hanks had to meet promptly, and there was a strong demand on the part of borrowers for credit. What these demands meant may he judged from the fact- that whereas the fixed and. free deposits for the ,I lino quarter of 1020. averaged £54,51)8,092, by the* following June they had dropped to £Mo.ol 1 .G 95, n contraction in twelve months of .£!).- 080,907. The advances for the June quarter, 1020, averaged .031.780.581. and in the June quarter of 1021. the average was £5 1,38.5.185. an increase i f £10,505.001. Thus it will he seen that in tho twelve months the banks had to find credit- to the extent of £20,082,10! , equal to nearly £BO,OOO per day for every day of the year. It was a great achievement, and there is no doubt that some of the hanks placed a severe strain on their resources in their endeavours to help the community. The banks ren doted magnificent service to the country, but they received ‘'more kicks than ha’pence” for those ignorant <4 hanking were under the impression that bank managers were able to manufacture credit- at will, while ethers again expected to borrow more than the securities tomErcd were worth. Tho hankers of New Zealand displayed great- skill, and remarkable foresight and courage during the slump, and they handled the situation in a masterly manner. To the bankers is largely due the credit- that tho slump was overcome so soon and so well, for the slump has passed into history.