BANK RETURNS.

New Zealand Times, Volume XXXIV, Issue 5734, 15 August 1879, Page 2

BANK RETURNS.

The quarterly statements of the average assets and liabilities of all the six banks trading in this colony have been published. We append some interesting figures copied or compiled from the tables in the “Gazette.” It will be observed that we have dropped out shillings and pence, the figures thus presenting a more compact form to the eye. Beginning with the general aspect of these accounts, it will be observed that there is a considerable reduction in both assets and liabilities since the last returns were made up, assets being less by £855,879, and liabilities by £1,294,307; while capital stock paid up has been augmented by £240,28G, and reserved profits by £183,979. A large proportion of the reductions is found to be under the heads of Government securities and Government deposits held by the Bank of New Zealand, the former having come down by £311,093, and the latter £516,378 ; thus, in the ordinary public business, the assets are less by £544,180, and the liabilities £777,929, the contraction of assets being out of all proportion to that of liabilities, if the totals of both sides are taken into consideration, as the former are a little in excess of one-half the latter. It is satisfactory to observe that both the capital paid up and reserved profits have been added to to no inconsiderable amount. The statements show that the general outcry about bank pressure is not quite so baseless as the fabric of a vision, as is sometimes alleged. ,For, while the population of the country is steadily increasing month by month, and the demand for money grows more urgent, not only to relieve pressing engagements, but also for profitable investment, the banks are curtailing thei» advances and discounts. In this notice we propose to deal with facts only, reserving the philosophy of the question for a future occasion. It will be seen that the large Government balance of £869,126 at the end of March had dwindled down to £352,748 on 30th June, though the difference of over half a million may be in a great measure accounted for by the repayment of advances to the amount of £311,693. What, we may ask, has become of £IOO,OOO of coins withdrawn during the quarter ? Has it been simply paid away to customers who have reduced their credit balances, or, as seems to us more probable, has it been exported to meet engagements in other countries 1 If the latter, the loss of so much hard cash is to be seriously deplored. There is an addition to the bullion in stock of £12,000, but this is not of much consequence, as we believe it is not tho practice of the banks to hold bullion, but to send it away to be coined. Landed property shows an increased value of £20,000. Discounts have been reduced by £355,583, which must have seriously incommoded the mercantile classes of the community ; and overdrafts are £126,822 less, this class of advance specially affecting those engaged in pastoral pursuits. Tho last item in the list of assets, “ secu- “ rities not included under other heads,” is scarcely altered, there being a diminution of some £2000; Turning to the consideration of the business of each individual bank, we observe that the Bank of New Zealand has increased its note circulation by £3500, and deposits not bearing interest have been reduced by £150,000, and deposits bearing interest by £211,000, the money no doubt having been more profitably invested otherwise. Its stock of coin and bullion has increased £89,000. Discounts show a contraction of £274,000, and other debts (overdrafts, &c.), £74,000, showing that it has reduced its accommodation by the large sum of nearly £350,000, which was no doubt necessitated by the extensive withdrawals of deposits. Its total liabilities more closely approximate the assets. The National Bank has less coin and bullion by £SOOO, whilst its note circulation has increased £2OOO. It has reduced its discounts £19,000, but made further advances of £38,000, making a total increase of accommodation of £19,000. Deposits not bearing interest show £37,000 less, and deposits bearing interest £64,000. The Colonial Bank’s note circulation remains almost stationary, but its coin and bullion have diminished by £24,000. There is a reduction of £21,000 in bills discounted, but only a very slight diminution of advances. It has lost £17,000 deposits not bearing interest,, and £37,000 deposits bearing interest. Union Bank of Australia—This bank shows a reduction of £62,000 in the amount of its coin and bullion, but it has £20,000 less notes circulating. Discounts are £36,000 less, and £75,000 advances have been called in. Deposits not bearing interest to the amount of £30,000 have been withdrawn, and tho large amount of £IOO,OOO of interest bearing deposits also. It would seem that the Bank of New Zealand had either been importing coin to meet the drain by the Bank of New South Wales or had eased its rival of a large sum, as the latter bank’s coin and bullion have diminished by £BB,OOO, or £IOOO less than the addition to those of the other bank. The discounts of the Bank of New South Wales are some £6OOO less, its advances a few hundreds more. Its circulation has diminished £2OOO, deposits not bearing interest, £25,000, and deposits bearing interest £7OOO. The coin of the Bank of Australasia (it holds no bullion) and its note circulation show little variation. The bank has discounted £IO,OOO more bills but called in £15,000 advances. It appears to be encroaching on its rivals, as its deposits not bearing interest have gone up £28,000, and deposits bearing interest £21,000.