EXCESS OF DEPOSITS

Sun (Auckland), Volume II, Issue 323, 7 April 1928, Page 5

EXCESS OF DEPOSITS

SOUND BANKING POSITION

IMPROVEMENT IN TRADE (Special to THE SUN) WELLINGTON, Friday. A striking indication of the improvement in the trade position, particularly in regard to the markets for the principal items of New Zealand’s primary produce is shown in the banking returns for the quarter ended March 31, compared with the corresponding period of 1927. The returns, which represent only the banks’ New Zealand business, show an excess of deposits over advances of £3,887,925, compared with an excess of advances of £5,271,996 in the first quarter of 1927. The most noteworthy feature is the huge expansion of fixed deposits.

This, however, is eclipsed by an even greater improvement in the trading position of the country for the period. The figures for March are not available, but returns for January and February of this year show that exports have exceeded imports by £8,190,949, and for the 12 months ending February 29, exports exceeded imports by £8,897,716. During the 12 months ended February 28, 1927, imports exceeded exports by £2,115,008. Thus returns for the latest 12 months show the remarkable improvement of £11,012,804: INCREASED DEPOSITS Comparative figures showing the movements of the three classes of deposits are as follows; Moll., 19.27. Mch., 1928. Increase.

The increase in fixed deposits compared with the almost negligible increase in free deposits has undoubtedly been largely brought about by the higher rate of interest which has been offering over the period. The aggregate returns of the free and fixed deposits were greater during the past quarter than at any otl%m time during the last five years. This is shown clearly in the following table: The aggregates of the free and the fixed deposits for the March quarter of the. last five years are as under: March

FALL IN ADVANCES The shrinkage of imports and the depressed state of many sections of internal trade is reflected in advances, which show a decline of £4,373,714, compared with the quarter ended March 31, 1927. In addition, there was a reduction in discounts of £356,724 to £1,504,895. Following is a comparison for successive quarters of private deposits and bank accommodation: Quarter. Deposits. Advances. Excess of

Deposits. Mar., 1928 49,958,295 46,070,370 3,887,925 The note circulation averaged £6,376,668, showing a contraction on year by £270,013, against which coin and bullion £7,867,459 show a reduction of £7,584.

Govt. Free . Fixed . . 3,095,271 . 24,440,77S . 21,088,834 £ £ 2.378,577 *716,694 24,482,151 41,373 25,476,144 4,388,110 Totals £ 48,624,883 £52,336,372 £3,712,789 ’“Decrease.

Quarter. Free. Fixed. Totals. 1924 .. £> 28.4Stf.163 18,597,130 SI 47,033,293 1925 . . 29,765,517 20,131.711 49,897,228 1926 . . 1927 . . 1928 . . 26,865,851 24,440.778 24.4S2.151 20,436,629 21,088,034 25,476,144 47,302.480 45,528,812 49,958,295

Dec. 1926. £ Advances. £ £ 44,236,650 51,273,211 7,035,561 Mar., 1927 45,528,812 50,800,808 5,271,996 June, 1927 46,490,366 50,752,106 4,262,740 Sep.. 1927 45,213,750 48,815,231 3,601,481 Dec., 1927 45,701,057 49,759,664 4,058,607 Kxcess of