BANKING RETURNS.

Taranaki Daily News, Volume LII, Issue 69, 17 April 1909, Page 6

BANKING RETURNS.

IMPROVEMENT IN FINANCIAL POSITION. THREE MONTHS' FIGURES. The returns for the first quarter of 1900 of the banks trading in -New Zealand make very welcome reading for the mercantile classes of the Dominion, and indeed for all sections of the community. For several quarters in succession these statements have afforded evidence of ever-increasing demands made upon the banks by customers and of diminution in tlie value of the productions of the soil, by the realisation of which funds have to be provided to enable such dciinaiids to be -met. The trend has been persistently- in the direction of increase in advances and decrease in deposits, leaving a chasm which has had to be filled up by the hanks by means of funds brought into this country from their resources in other plates. On the present occasion, however, it is pleasant to be able to talk of reduction in advances and of augmentation of deposits, making together a substantial change in the relative 'positions of the banks and their customers. These movements are shown in the comparison of the totals under the several headings of the returns lor the March quarter with those of the corresponding totals of the quarter ended on 31st December last. These contrast as follow: December March Quarter. Quarter. Deposits, free .. 0,520,058 10,100,038 Deposits, fixed .. 9,082,390 ' 9,083,942 Deposits, Govt. .. 803,080 1,224,482 Discounts .. 2,300,229 2,132,502 Advances .. 10,123,523 18,180,008 Note circulation 1,007,222 1,587,052 Coin and bullion 4,585,755 4,712,030 In the aggregate of .both classes private deposits show an increase of £002,820, while Government credits also exhibit an increment of over £330,000. On the other hand, advances, inclusive of discounts, are reduced by £1,104,282. Movements in these directions are the normal experiences of the March quarter, in consequence of the realisation of the season's output of produce. For the last year or so, however, the trend of both imports and exports has been abnormal, and the result has been markedly shown in the bank returns. During the quarter just closed there has been a substantial increase in the volume of our exports owing to the'bountiful character of the season, while there is reason to believe that si considerable shrinkage will be seen in the volume of imports when the official return comes to be published. The combined benefit resulting from the movements disclosed above, inclusive of the Government account, is an improvement of £2,097,004 in the general position. SOME COMPARISONS.

We will now turn to a comparison with previous years at the same season, beginning with tbe totals of assets and liabilities, which compare as follow: Assets. Liabilities. I Ma rch Quarter. £ £ 1005 .. 21,102,181 21,888,054 1900 ... 22,830,581 23,428,030 1907 .. 25,501,897 25.200,580 1008 .. 28.825,571 24,005,200 1009 .. 27,091,758 23,079,577 In the year's comparison the assets (which include advances) show a reduction of nearly £834,000, while the liabilities, inclusive of deposits, exhibit a decrease of nearly £1,580,000. The assets are still in excess of the liabilities by £4,912,000. In March, IJIO7, the two> sides were nearly uiuiul, but a year later a change of som ■ four millions had taken place hi the position through the decrease of deposits and tlie heavy in- [ crease in advances. I Advances and discount* exhibit the I changes revealed below:— , March Discounts. Advances. Total. Q'rl'r. £ £ £ 1005 .. 2,149.004 12.025,151 15.074,215 1000 .. 2.143,483 13.091.821 10.135,304 1907 .. 2,1102.807 15.551.547 17,554,351 1008 .. 2,095.705 18,542.300 20,038.104 190!) .. 2,132,502 18,180,008 20,319,470 Through the heavy decrease effected in the llarcli quarter the total shows a reduction in tho twelvemonth of some £319,000, but is still considerably higher than in any of the earlier years at this period. The growth in the total since 1005 is over £5,000,000. Deposits present the following comparisons:— March. Free. Fixed. Total. Q'rt'r. ,C £ . £ 1005 .. 9.030,853 9,210.702 18.247,555 1900 .. 9,712.020 9,701,100 19,503,180 1007 .. 11,343,582 0.700.511 21,044,093 100S .. 11,534,880 9.553.094 21,088.574 1000 ... 10,100,038 9,083,042 20.084,880 Here, hi spite of the increase in March return, the total is still a full million below that of a vear ago and that of the March quarter of 1907. The fallingoil' is, it will be seen, wholly in the free deposits, the lixed class, which in 1908 exhibited a decrease, showing in the last twelvemonth a fairly good increase of £430,000. ADVANCES AN© DEPOSITS. ■Contrast-nig advances with deposits, we get the following results:— Excess of March Deposits. Advances. Deposits. Q'rt'r. £ £ £ 1905 .. 18.247.555 15,074.245 3,173,310 1900 .. 19,503,180 10,135,304 3,307,870 1907 .. 21.044,093 17,554.354 3.489,739 1908 .. 21,088.574 20.038,104 450,470 1909 .. 20,084,880 20,319,470 *234,590 *Excess of Advances. The earlier years show an excess of deposits of over three millions, but the latest return exhibits a small excess of advances. Three months ago the excess of advances amounted to over two millions. The present reduction is very j satisfactory. I Note circulation shows the following llivctuations: — December March Quarter. "Quarter. £ £ 1904-5 ... 1,451.813 1,457.970 1005-B .. 1,4(18.834 1.517.007 1000-7 .. 1.011.220 U147731 1907-8 .. 1.011.857 1.040753 100S-9 .. 1.007,222 1,587,052 A falling-oil' in note circulation in the ~ March, quarter is most, unusual, awl is indicative of contraction of trade. The present total is below that tit the same date in two previous years. The aggregate of coin and bullion compares as follows: Coin and Bullion. .March Quarter. £ 1005 3.040.343 1000 4,290,252 1007 ... .. .. -1.002.058 100S 4.984.50(1 1000 -. 4,712,030 lit the returns of tile several banks movements are shown as follow in the year as regards advances ami deposits: March. March. 1008 1009. Advances. £ £ Hank of N.Z. .. 8.100,995 8.091.01S CniOii.Hank.. ..3.511.020 3.303.728 Hunt of N.S.W. .. ."1,055,294 3,007.748 Hank of Australasia 3.111.079 3.013,110 National Hank .. 2.858,808 2,770,930 March, Mtirch. 190 S. 1000. I Deposits. £ £ Hank of X.Z. .. 9.504.920 0,175,517 Union Hank.. .. 2.893,315 2.745,403 Hank of X.K.W. .. ,1,187,004 2.004,084 Hank of Australasia 1.874.885 1.741,305 National Bank ..3,237 541 3,157,581 Four of the banks show a share, greater or less, in. the total of advances, and all live exhibit a proportion Of decrease ill deposits. TOE OUTLOOK. The improvement shown in the features of these returns will, in all probability, be found to have been brought about mainly by an increase in the volume of our exports, accompanied by a shrinkage in that of Hie imports of the Dominion. While welcoming this measure of recovery, it must not be forgotten that hi the March quarter a very large proportion, of the exports of the year are sent away. The total for this period represents, ordinarily, 40 per cent, or more of the year's total.' In the June quarter the volume is greatly reduced, while the 'September quarter, the end of the produce year, exhibits the most slender proportions of the four divisions of the twelvemonth. At the same time there is no corresponding diminution in • the volume of imports, so that, ordin- ' arily. the imports of the six months. April-September, arc in excess of the exports, and under normal conditions, the end of September would see the financial position somewhat worse than it is today. However, conditions at present are not normal. We quite expect to see the imports of the. six months ill question [ show a. substantial shrinkage, while I there is. some ground to hope that the exports may show, a little better than usual. The exports of dairy produce | - and frozen meat are likely to show heavier quantities than those of the same period of last year. For the surplus of our splendid wheat crop n profitable market seems to he Availing, and shipments of this commodity are likely to be far in excess of anything that has been seen for several years. There is good reason, therefore, to hope that the advance shown in the bank statement for the March quarter, may not only be ; lqst, lnitiiw«eiiiiQVjnmitoyjd/uponjhv: