A Review of Banking Returns.

Poverty Bay Standard, Volume IX, Issue 922, 2 March 1881, Page 3

A Review of Banking Returns.

Fbom the return of assets and liabilities for the quarter ending 31st Dec., 1880, of the Banks doing business in this Colony, published in the Governmeht Gazette, we, N. Z. Herald, compile the following statement, showing a comparison of the totals with those of the previous quarter (30th Sept.) eliminating those figures which do not bear any special significance. Liabilities. Increase. Decrease. Notpa in .circulation ... £15,078 Government deposits ... 228,143 Deposits' bearing interest 78,145 ~ not bearing interest 62,699 Assets. Coined metals ... £42,376 Bullion : ... 14,715 Notes & Bills Discounted 153,090 -Other Advances ... 230,620 From this comparison we arrive at the following result: —The diminution which has, been shown for the past 18 months in tl?e amount of bills discounted appears; to fie continuous, and is evidence of the contraction of commercial* operations. During the period just named the liability of the Banks in respect of bills discounted has decreased by no less a sum than £2.147,086. a violent contraction of

the sinews of trade which eodld not fail to be attended with disastrous results to the Colony. The increase which has taken place in other advances would-appear to indicate a change in the policy of the, Banks, favourable to borrowers, and that, failing an- outlet for their resources in the purchase of’trade bills, they are making advances upon other securities: Tire increase in deposits in the face of reduced interest is probably attributable fo th e realisation of the wool clip at this reason of the year, but is also to some extent evidence ;f the dearth of safe investments, an jof the difficulty experienced in obtaining profitable employment for capital. Looking at the banking returns generally, however, we consider they indicate unmistakably that the lowest point of the prevailing commercial depression has been reached, and warrant us in anticipating the inevitable consequences of cheap and abundant money, viz., a revival in trade and the resumption of legitimate enterprise atno distant date.