BANKING RETURNS.

Taranaki Daily News, Volume LIV, Issue 95, 12 October 1911, Page 5

BANKING RETURNS.

OUTLOOK PROMISING, GOVERNMENT'S BIG- DEPOSIT. The bank returns for the September quarter are available rather earlier than usual, and a comparison of the figures with those for the corresponding quarter of last year discloses movements that are favorable in many respects. The September quarter closes the produce year, and the figures are therefore specially interesting. There is an increase in the note circulation, pointing to activity within the Dominion. The. deposits show expansion. Turning first to the aggregate liabilities and assets the figures of each institution compare as under: . Liabilities. Assets. £ £ Bank of N.Z. .. 15,559,570 12,370,194 Union 3,486,560 4,553,503 New South Wales 3.033,774 4.284,687 Australasia 2,288,938 3,!>56,957 National 3,935,420 4.503,366 Totals 28,904,268 29,668,607 The assets thus exceed the liabilities by the moderate sum of £764,429, and it will be noted that the assets' of the Bank , of New Zealand are considerably less . ... tlian the liabilities. This Ibank is, no doubt, finding a more profitable use for its funds outside of New Zealand. The advances show an increase of ; £3,100,152 a® compared with the Sep- ' tember quarter of last vear. the. figures ' beingi £19,687.242 as against' £10,527,090. A year ago the increase was only £133,- . 809. There is thus a very striking difference. The borrowers have been driven to the banks because they need the money to meet engagements," or else they sea ways of using the money profitably. If the latter is the ease there will follow a strong revival in trade, but if the former is the true position, then there' will Ibe great economy exercised, which must be a check on general business. All the banks shared in the increase in advances, the figures of the respective institutions being as follows:—Bank of New Zealand, September, 1911., £7.466,!)W1 (increase £1,205,602); Union, £3,. 327,813 ( £205,550); New South Wales l , £0,922,297 (£694,068); Australasia, „ £3,007,467 (£436,630); National. £2,- ' •82,69$ ( £538,302); total, £ 19,087,242 (£3,160,152). The discounts exhibit an l increase, of £IQSSII, while last year there wad, a. 1 shrinkage of £126,920. The exjmnsion this year is somewhat significant, for it indicates pressure from some directions. The growth in the advances and disr counts compared with the movement* disclosed last year is somewhat unhealthy. Turning now to the deposits, the comparison for the two years is as under: Sept. 1910. Sept. 1901. £ £ s Govt, deposits .. 1,850,619 3,121,363 Free deposits .. 12,749,702 113,438,405 Fixed deposits ... 10,394,647' Il0;516,11.6 Totals 24,994,968 £7,07,5,884

There is a substantial increase in the total due to the unusual expansion in the Government deposits. Taking -it period of five years the Government deposits compare as follows: Sepit. £ 1007 1,952,201 ' 1808 1\068,007 1909 1,428,034 1910 1,850,019 *#ll It is difficult to account for the growth of these deposits, unless it has some relation to the pending general election. The . free deposits increased by £688,703, while last year the increase was as m\ich as i £ - 2,'2i1.9,33'2. In view of the great growth of tank advances the free deposits * should have exhibited some cbmppond- •'* big growth, and that they haye not •- ' done so points to the probability that the advances have been obtained to meet- ■. outside obligations. All the banks 1 , shared in the movement. The fixed deposits exhibit an increase of £120,409. All th« banks with the exception of the Bank of Australasia shared in the increase. The fixed and free deposits combined, compared wii.ii the advances and discounts combined, are disclosed in the table appended):—

Advances and Sept." 30 Deposits. discounts. £ \ £ 1007 21.655,003 18,408,184 1908 20,31(0,007 21,217,05!) 1909 20,079,120 18,1(0,707 1,910 23,144,349 18,177,596 1011 23,054,521' 21,431,659

The excess of deposits over advances at the close of the last quarter was £"2,52&,8(i&, while a year ago'' it; "was £4,986,759. The note circulation shows an increase of £44.192, which is very satisfactory. There is also an increase in the /metal reserve.

The figures, on the whole, aw .flfijt unsatisfactory, and the immediate outlook is very promising. A large expenditure of Government money during the next four or five months is inevitable, for, as compared with a year ago, Government deposits are £1,270,744 more. If the climatic conditions remaiin favorable, and there is a large output of produce, the position will be extremely favorable.