The Daily News. WEDNESDAY, APRIL 19, 1905. OUR PROSPEROUS COUNTRY.

Taranaki Daily News, Volume XLVII, Issue 7802, 19 April 1905, Page 2

The Daily News. WEDNESDAY, APRIL 19, 1905. OUR PROSPEROUS COUNTRY.

In the general way the periodical returns relating to the position and business of the various banks in the colony are not the most attractive items of news for the ordinary reader, but at the present juncture, when, from unworthy motives, so many misleading statements as to the financial position of thn country are circulated, there is every inducement for particular interest to be taken in the returns for the first quarter of the year, 'inasmuch as they furnish a- complete and unimpeachable answer to the pessimisPTc utterances of those who ought to know better. In addition to this, the returns throw a light on several mattersi relating to local trade and commerce, which puts quite a different complexion thereon, and though various conclusions may of course be Brawn from the figures to bo found under some of the headings, such, as '■'. Advances," and "Discounts," only one conclusion can bo arrived at on a study of the whole subject, and that is summed up by the Post, thus :—" The figures on the whole are very satisfactory, for they show that the country is still prosperous, while the prospects of cheap money will tend to prolong the good times. If the rates were redueed the first step towards a general reduction would be taken. The banks cannot take the Post OIKC2 Savings Bank deposit initiative in the matter without suffering in some degree." Although the bank rates for accommodation aro now higher,, there has been increased borrowing, and this would seem to indicate that, both the commercial classes and farming community can profitably employ the money. The only indications given by the returns as to a restriction of domestic trade is that afforded by the shrinkage jn the note circulation. As we recently pointed out, this fealurt may well be ascribed to prudence in sperdiug money on other than actual necessaries, and to the policy ot reducing mortgage liabilities'—a process mostly effected by chejques. The aggregate liabilities of the bunks show an excess over assets of £727,772, chiefly due to the fafcj that the Government deposits in the Bank of New Zealand show an increase foi" the past quarter of £578,801 as compared with the corresponding period of last year. All the oilier bank's except the Union Bank show a balance the other way. With regard to. advances there was uu increase of £547706 over those for the March quarter of last year, when the Increase amounted to £1,256,51>1. Dis-ounts exhibit an increase of £105,151. the figures for the past quarter being the largest tor the March period for a number of years. it is,

however, in fixed deposits, (.hat a very strong advance is shown, and this notwithstanding tj 10 more attractive rate Offered by the Post Office Saving*) Bank, The increase in deposits for thy post quarter was £846,165 us compared with £133,893 as shown a year ago. Free deposits also showed an increase but not so large as that of the previous year. This points to the fact that depositors have not .been slow to see the advantage of fixed deposits and have converted accordingly. Taking a series of years from 1901 to 1905, inclusive, there appears to have been a steady growth in deposits from £15,125,721 to £lB,-2-17,555, Discounts and advances hava grown from lwaive to fifteen millions. With the exception of the .Near 1:903, which was a record one for the colony, the excess of depo-( sits over ■advances and discounts ,has been about £3,000.000, the excess for 1903 bejng £1,000,000. During the same period the note circulation up to 1904 Increased steadily from £1,319,225 to £l,-

471, 108 but dropped this year to £1,457,970. Coin and bullion during the like pei;iod also showed a satisfactory expansion, the incrca&o. being from £2,885,300 fo £3,949,343. It is evident, therefore, that the tanks are maintaining a metal reserve adequate to the requiVements of the country. Altogether the financial ouHlook is most encouraging), and the steady expansion of hho past points to the soundness of trade in life colony,