AUSTRALASIAN BANKING IN 1890

Waikato Times, Volume XXXVI, Issue 2946, 2 June 1891, Page 2

AUSTRALASIAN BANKING IN 1890

Tun growth of banking business in the Australasian Colonies is something astonishing. Much h.is been written respecting the varying progress, and prospects ot the different colonies. I.sut. perhaps there is no better guide as to the general advance made than the record of business done by the banks. From the ljri'.ish Australian we make samo extracts which unmistakably show that the banking business is steadily increasing, and also, that the position of our own colony, in this important m ittur is, relatively speaking, a very safe one. Taking the aggregate liabilities and assets of the

e Australasian banks cinuhiuuil, we find thai luil.tiu*'i at. the enormous totals of " OoL Turning to tins coin and bulli m heli > trj liabilities, this in Dumber 81st, 1K!>0. * was- estimate'i ;it, deposits .utfl clieulatioii li!.llj,(iS3,!lOJ, C iin and bullion. l)cintf per cent of li il-i'.ities, Tliii i)i:iy seem r.ither a small nui"m:it of reserves but if, aa is stated, a largo pmpor tion of tin deposits are hold fur long p"ii'-.ds, and til i! taking the deposits—at call—and votes', tin pui'uuntJgJ is over ~>!), it will bo aduiitli ' , that it U aimiln enough. Taking tin i position of Now Zealand in tho banking i aggregate, wo lind in the important, pom' i of advances compared with deposits, thai < with deposits of £!12,21i0,.521, the advance.- ■ were t; 1 -J,402,7-12, being an increase ol ' advances over deposits of some two millions, as compared with seven millions in land, seven and a half in New South Wales, i and tun millions in Victoria. This will show that banking in this colony lias been conducted upon conservative and cautions lines. Indeed it may be said, perhaps too much so, for while deposits in the Now Zealand banks increased almost a million in 1890, the advances during the same period decreased by £377.621. The significance of this movement is plain enouel), and we believe the chronic uncertainty which surrounds every enterprise, requiring the employment of much lubour has had a great deal to do with this locking up of capital in the banks. Those having capital to invest prefer the smaller but safor return given by monetary institutions, rather than embark in enterprises, nvolring tisk and anxiety. That tho earning power of the banks must necessarily decrease with the large amount of idle deposits is unquestionable, and it would appear that up«u the permanent settlement of tho labour question, if we may look forward to such a consumption, any decided change from this position depends. Tho amount of available, capita! seeking investment in th s colony is so ample that rio legitimate enterprise, for the purpose of developing our agricultural, mineral or manufacttuiug rcs-mrces, need languish for the want, of the sinews of war. Turning again to the Australian banking business, it furnishes fnod for reflection, that some 3, { . >00,000 persons .hlimiM cnlribute ,-o extensively towards anil find employment for such vast sums of money. The depo-its alone, be it understood, represent no less than £23 !ls per lis.id of the entire population—a sum not equalled by any other community on the face of tho globe.