BANKING RETURNS.

Otago Daily Times, Issue 19995, 12 January 1927, Page 8

BANKING RETURNS.

COMPARATIVE FIGURES. DECLINE IN DEPOSITS. INCREASED ADVANCES. (From Out Special Correspondent.) WELLINGTON. January 11. The banking averages for the December quarter reflect the trading conditions. Although the trade returns for last year are not available at the time of wiring they are bound to disclose an adverse balance for the figures for the 11 months showed an excess of imports over exports amounting to £3,f57,590. The banking returns show that the deposits have declined by over £3,000,060, while the advances increased by £2,700,000. Taking the three classes of deposits the figures compare with those for tho December quarter of 1925 as under; DEPOSITS. Dec. U'2s. Dec, 1026. Decrease. £ £ £ Govt 3,603,564 2,383,149 1,313,385 free 25,189,553 23,131,103 2,058,450 Fixed 20,840,809 21,105,547 *264,738 Totals ... £43,726,896 £46,619,709 £3,107,007 • Signifies Increase. The fixed deposits show the small increase of £264,758, but tho other two classes of deposits are substantially less than in the corresponding quarter of 1925. The shrinkage in the free deposits or current account balances is rather large, and is the first contraction to be noted since 1922. Except for a small gain of £19,955 shown by the Commercial Bank all the institutions lost heavily in this class of deposits, as will be seen by the table appended:— FREE DEPOSITS. Bank. Deo. 1025, Dec. 1025. Decrease. £ £ £ New Zealand 11,602,254 10,813,136 879,058 Union 2,865,793 2,672,047 193,(46 N.S. Wales ... 2,603,823 2,366,023 327,800 Anstraliasia 2,466,310 2,130,761 335,559 National ... 4,520,903 4,198,661 322,242 Commercial ... 030,470 050,425 *19,955 Totals ... £25,180,553 £23,131,103 £2,068,450 • Signifies Increase. This adverse showing is no doubt due to the excess of imports necessitating the transfer of credits beyond the Dominion. The fixed deposits exhibit the small increase of £264,738, the gain being secured the Bank of Now Zealand and the Commercial Bank, the other institutions chewing decreases as will be seen in tho following table: FIXED DEPOSITS. Bank. Dec. 1925. Dec. 1026, £ £ £ New Zealand 10,467,817 10,854,208 *386,391 Union ... 2,397,231 2,375,487 (21,744 N.S. Wales ... 2,779,806 2,754,073 (25,823 Australasia ... 1,833,701 1,704,644 (129,057 National ... 3 073,689 3,044,276 (29,413 Commercial ... 288,475 372,859 *84,384 Totals ...£20,840,809 £21,105,547 *£264,738 •Increase. (Decrease. Taking the aggregates of the free and fixed deposits for the December quarter of each of the past five years the figures compare as under: — FIVE YEARS; AGGREGATES. Dec. Free. Fixed. Total. Quarter. £ £' £ 1932 . ... 23,542,867 17,501,552 41,104,419 1923 24,261,042 18,569,165 42,830,177 1924 24,776,888 19,809,611 44,676,499 Jo2,i 25,180,553 20,840,809 46,030,362 1026 23,131,103 21.015,547 44,236,650 The advances have increased by £2,769,369, and all tho banks show increases, except tho Bank of Australasia which reduced advances by £24,775. This is shown in the table appended;— ADVANCES. Dec. 1925. Dec'. 1926. Increase. Bank. £ £ £ New Zeland 20,306,018 21,720,724 1,414,606 Union 5,818,951 6,266,631 447,860 N.S. Wales - 5,746,332 6,329,074 682,742 Australasia ... 5,107,659 5,082,884 (34,775 National ... 8,442,402 8,646,036 203,634 Commercial ... 1,205,708 1,361,090 145,382 Totals ... £46,627,070 £49,306,439 £2,769,369 ( Decrease. The discounts show a contraction of £50,585, the totals being £1,876,772 against £1,927,357. Tho increases are shown by the Union Bank (£5617), the Bank of New South Wales (£21,643) and the Commercial Bank (£6674). The decreases are the Bank of New Zealand (£47,805), Bank of Australasia (£29,089) and tho National Bank (£7615). The aggregates of the advances and discounts for the December quarter for each of the past five years are shown as under: — AGGREGATES. Dec. Advances. Discounts. Total, quarter. £ £ £ 1022 41,770,678 1,660,338 43,431,015 1023 44,427,858 1,801,636 46,229,394 1924 44,227,557 1,708,897 45,936,454 1925 46,627,070 1,927,357 48,554,427 1026 49.396,439 1,876,772 51,273,211 It is usual for the advances to exceed tho deposits in the December quarter. At all events that has been the ease for the past seven years. This will be seen by the figures given in the table below: — Dec. Deposits. Advances. Excess, quarter. £ £ £ 1922 41,104,419 43,431,018 2,326,597 1823 42,830,177 48,229,394 3,399,217 1924 44,675,490 45,936,454 1,259,955 1925 46,030,362 48,554,427 2,524,065 1926 44,236,650 61,273,211 7,035,561 The excess of advances in the last quarter Is very large and very significant. The note circulation in the past quarter averaged £6,757,707 or £189,970 less than in the corresponding quarter of 1925, while coin and bullion showed an increase of £69,765. Tho aggregates are as follows: Note Coin Dec. quarter. circulation. and bullion. 1922 £673,908 £7,884,110 1923 6,643,900 7,867,841 1024 6,749,505 7,722,470 1925 6,947,677 7,740,219 1926 657,707 7,809,984 As the free deposits were less by £2,058,450 and the note circulation lower by £189,970 the purchasing power of the epmmunity, as compared with 12 months • ago is £2,248,420 less, and that must make a difference to the domestic trade. It cannot be said that economic conditions are as satisfactory as they were a year ago, still there is no occasion for any serious concern, for with ordinary care tho position will soon be righted. There is a tendency for the imports to shrink, and if that is continued the balance of trade will soon be in our favour.