The Gisborne Times. PUBLISHED EVERY MORNING. WEDNESDAY, JANUARY 19, 1910. BANKING RETURNS.

Gisborne Times, Volume XXVIII, Issue 2713, 19 January 1910, Page 4

The Gisborne Times. PUBLISHED EVERY MORNING. WEDNESDAY, JANUARY 19, 1910. BANKING RETURNS.

The statements of the liabilities and assets of the various banks doing business in the Dominion during the quarter ending December 31 are now to hand. They show that all the institutions are in a thoroughly strong position, and they also provide evidence of the .recovery that the country is making from the depression of 1908. The deposits have materially increased, and are now within £16,000 of the 1907 lig r ures, which were the highest recorded to that date. Advances on the other hand are still restricted, and it is evident that tbe Banks are still holding tight to the purse-strings. In other words, the business community is being compelled to trade within its means, and while the financial position is quite sound, speculation must obviously be limited in comparison with the state of things which existed prior to 1908. The chief factor in the situation which has enabled the people to increase deposits, whilst accepting less in the way of advances, has been the magnificent returns that have came from a bountiful soil in a favorable season, cc-upled with the high prices that have ruled for our chief products. Coming to the returns themselves, it is shown that the assets of the banks exceed liabilities by £2,799,702, the following.being the totals of all banks: Dec., 1908. Dec., 1909. £ £ Assets 28,(977,861 26,723,677 Liabilities ... 22,103,898 23,923,975 Excess Assets 6,873,963 2,799,702 The chief items under both headings compare as under:— LIABILITIES. Dec., 1908. Dec., 1909. £ Circulation ... 1,607,222 1,573,973 Bills 93,155 100,247 Govt, deposits 893,680. 1,434,924 Free deposits... 9,529,657 10,173,070 Fixed deposits 9,892,396 1Q,588,170 ASSETS. i Dec., 1908. Dec., 1909. £ £ Coin & bullion 4,585,756 5,090,841 Bills 204,485 - -202,795 Landed'property 428,104 4f\8,5i7 Discounts ...... 2,300,228 1,835,4/0 Govt, securities 1,250,927 250,026 Funded securities 59,014 55,014 Advances 19,123,523 16,944,097 Other securities992,l39 897,^88 .'A ' : 4'V*'’ S . '

it -will be noted that the fixed deposits show an increase of £695,744, and the . free deposits £043,418. The comparisons given above do not, however, afford a fair idea of the situation, and it may be better, then, to take the fixed and free deposits for the past'seven years, the aggregates of which are as follow : Dec. 31. Free. Fixed. Totals.

£ £ £ 1903 8,361,648 8,945,587 17,307,235 1904 8,425,376 9,099,010 17,524,386 1905 8,836,507 9,776,098 18,612,605 1906 10,250,540 9,843,258 20,093,798 1907 11,136,009 9,651,294 20,787,213 1908 9,529,657 9,892,396 19,422,053 1909 10,173,070 10,588,170 20,761,240 The following table for tihe past seven years of the totals of advances and discounts will he found interesting when read with the deposits:— Dec. 31 Advances Discounts Totals £ £ £ 1903 12,085,611 1,993,097 14,078,708 1904 13,092,138 2,156,011 15,248,149 1906 15.622,549 2,126,376 17,748,923 1907 17,913,858 2,069,272 19,983,130 1908 19,123,523 2,3Q0,228 21,423,751 1909 16,944,097 1,835,470 18,779,567 It will be noted from the above that whereas in 1908 the Banks advanced two millions sterling over and above the deposits the position has since been reversed, for in 1909 tlie deposits exceed the advances by a similar amount. Tlhe excess has now reached a figure with which the Banks have in the past been apparently satisfied, so that the surplus cash arising out of the present good season should be largely available for again adding to the development of the country by various forms of enterprise that have lately been severely checked.