H.—44,

5

The following table shows for the past ten years the deposits and advances as at the 31st March in each year

The graphs which follow illustrate these figures diagrammatically. In the first one bank deposits, less advances, are represented for the ten years 1920-29, excess of deposits being shown above the zero line and excess of advances in any particular year being shown below. In the second one the actual figures of deposits and advances are represented for the same ten years.

The bank returns, like the overseas-trade returns, reflect the greatly improved trade balance, for both the favourable balance and the funds available have reached exceptionally high levels. Other indicators of business conditions also show considerable improvement, and confirm the tendency towards the marked recovery of business activity shown by the above figures. Post Office Savings-bank returns, which became rapidly less favourable during 1927, have now shown steady improvement for more than a year. For the year ended 31st March, 1929, deposits totalled £27,252,381 and withdrawals £28,111,940, being an excess of withdrawals over deposits of £859,559. For the previous year, ended 31st March, 1928, deposits amounted to £27,611,066 and withdrawals were £30,584,997, an excess of withdrawals over deposits of £2,973,931. These figures show a greatly improved position for the past year, and there are indications that the period of excess withdrawals has come to an end and that a period of excess deposits will be resumed, for the deposits for the quarter ended 31st March, 1929, were £6,908,589 as compared with withdrawals amounting to £6,517,949, an excess of deposits of £390,640.

Excess of As at 31st March, Deposits. Advances. — Advances. Deposits. £ £ £ £ 1920 .. .. .. .. 50,665,091 32,042,043 .. 18,623,048 1921 .. .. .. .. 47,155,731 52,446,341 5,290,610 1922 .. .. .. .. 40,360,390 46,491,316 6,130,926 1923 .. .. .. .. 43,465,816 42,521,571 .. 944,245 1924 .. .. .. .. 47,033,292 44,403,524 .. 2,629,768 1925 .. .. .. .. 49,897,228 43,730,262 .. 6,166,966 1926 .. .. .. .. 47,302,480 48,285,140 982,660 1927 .. .. .. .. 45,528,813 50,800,809 5,271,996 1928 .. .. .. .. 49,958,295 46,070,370 .. 3,887,925 1929 .. .. .. .. 55,345,493 46,359,742 .. 8,985,751