LOANS AND ADVANCES.
For some considerable time past, banking loans in Scotland have shown a decidedly downward tendency, and a long continued depression in trade has altered the distribution of assets. Conunercial Bills are compara- tively small in aggregate, and Treasury Bills now form the bulk of the present-day Portfolio. These, if unprofitable from the point of view of margin, are only -second to Cash in Hand and Money at Call from the point of view of ready resource. - If forthcoming balance-sheets show again a decline in general advances—which is very pro- bable—investment totals arc likely to be substantially on the up grade. Some ill-informed critics of the existing system blame the Banks for taking on the colour of In- vestment Companies rather than fostering Industrial enter- prise. The answer to this is that the Banks, with their large supply of ready money, would only too gladly make advances to trade were such required. The fact is, that under existing conditions credit is not sought to anything like its former extent. It does not pay a trader to run up an overdraft and increase stocks for which markets are awaiting. Given conditions under which sales can be arranged, no difficulty need be experienced in obtaining reasonable financial assistance, and that at extremely faVourable rates.
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