MONEY PLENTIFUL

Sun (Auckland), Volume II, Issue 559, 11 January 1929, Page 12

MONEY PLENTIFUL

N.Z. BANKING RETURNS BIG INCREASE IN DEPOSITS ! Striking testimony to the improved [ financial position of the Dominion is given by the banking returns supplied j by the associated banks for the quarter ended December 31, 1928. Compared with the corresponding period of 1927, ! all classes of deposits show a substan- i tial increase, while there has been a J pronounced falling off in advances. The present position, in fact, points to even lower interest rates in the near future. Taking the three classes of deposits and comparing the figures with those for last year the movements have been as follow: Dec. 1927 Dec. 192 S Increase Govt. . . £1,774.934 £2,070,690 £295,756 Free .. 21.435.335 22,179,748 741,413 Fixed . . 24,262,722 29,481,658 5,218,936 Totals £47,475,991 £53,732,096 £6,256,105 This is the first occasion for three years that there has been an increase in the free deposits in the December quarter, but the total is very much below what it was in 1925. With the exception of the National Bank all the banks shared this increase and the increase in free deposits was distributed without exception. The comparison for the two years is as follows: ! j

Totals £24,262,722 £29,481,658 £5,218,936 The aggregates of the free and the fixed deposits in the December quarter of the last five years are as follows:

up to iy_:b tne fixed. deposits were substantially lower than the free deposits or current accounts, but m the last two years the position has changed completely, and the fixed deposits are very much larger than the free deposits. When money is placed on fixed deposit, the owner cannot deai with that money, and it is amazing that suitable investment cannot be found for such funds, or it may be that confidence is lacking. The banks are in possession of ample funds for meeting all reasonable demands that may be made on them, but unfortunately demands for overdrafts are slackening and the quarterly figures show a shrinkage as compared with 12 months ago, as will be seen from the followingsummary:— ADVANCES

Totals £48,087,788 £46,810,684 £1,277,104 "Increase The National Bank and the Commercial Bank are fortunate to show increases, but the other banks have been able to lend out less than a year ago. The discounts are also less by £381,456 than they were a year ago. They totalled £1,290,420, as compared with £1.671,870 in the December quarter of 1927. The relation between deposits and advances in the December quarter of recent years and the last four quarters has been as follows:

•Excess of advances tExcess of deposits The note circulation shows ,a small shrinkage, £48.955, compared with a year ago, and the tot&l of £6,521,106 is the smallest amount for six years. The highest figure in that period was £6.947.677 in 1925.

FREE DEPOSITS Bank Dec. 1927 Dec. 1928 N. Zealand £9,9S0,378 £10.433,652 £453,274 Union 2,347,788 2.411,735 N.S. Wales 2,190,398 2,323,827 133;42-j Australasia 2,024,066 2.135,957 National . 3,922.297 3,872,792 *49,505 Commercia 1 973,408 1,001,785 28,377 Totals . . £21,438,335 £22,179,748 £741.413 -Decrease FIXED DEPOSITS Bank Dec. 1927 Dec. 1928 Increase N. Zeal nd £12,144,068 £14,438,282 £2,294,214 2,695,589 3,386,234 690,645 N.S.W. . 3,183,115 3,876,527 693.412 Australasia , 2,006,628 2.705,486 698,858 National . 3,748,844 4,439,716 690,872 Commercial 484,478 635,413 151,035

Dec. Qtr. Free Fixed Totals 1924 .. £24.776,SSS £19,899,611 £44,676,499 1925 .. 25,189,55:1 20,840,S09 46,030,362 1926 .. 23,121,103 21,105,547 44,236,650 1927 . . 21,438,335 24,262,722 45,701,057 1928 .. 22,179,748 29,481,658 57,661,406 Uu to 1926 the fixed denosits were

Bank Dec. 1927 Dec. 1928 Decrease X. Zeal’)id £21,253,281 £20,049,14U £1,204,14 1 Union .. 5,081,549 5,583,399 98,150 N.vS.W. . . 6,260,483 6,024,565 241,918 Australasia 5,124,389 5,061,845 62,544 National . 8,460,734 S,566,S44 *106,110 Commercial 1,301,352 1,524,891 *223,539

Quarter Deposits Advances Excess Dee. Dec. 1924 1925 £44,676.-499 46,030,362 £45,936,454 48,554,427 *£1,259,955 *2,524,065 Dec. 1926 44,236,650 51,273,211 *7,035,561 Dec. 1927 45,701,057 49,759,664 *4,058,607 Mar. 1928 49,958,295 46,070,370 j3,887,925 June 1928 52,947,133 45,426,955 17,520,178 Sept. 1928 52,596,018 45,119,424 t7,476,594 Dec. 192S 51,661,406 4^101,104 t3,560,302