Commercial.

Evening Star, Issue 3099, 24 January 1873, Page 2

Commercial.

The amount of revenue received at the Cus-tom-house ou goods chared for consumption this day, was L1,83219s 7d.

On the 16th inst. the Banks in Melbourne adopted a new scale of discounts, under which their customers will pay 2 per cent, less than formerly. For bills of 65 days’ currency the discount will be 3 per cent, instead of 5 per cent.; for bills of 95 days’, 4 per cent instead of 6 per cmt.; and for bills of 125 days’, 5 per cent, instead of 7 per cent. The interest on secured overdrafts has been fixed at 5 per cent., except in the case of tho Bank of New South Wales, at which establishment the charge will be 6 per cent. The Argus says, in reference to it:— The announcement of an extraordinary reduction in the rate of discount will surprise even those who are familiar with the keenness of banking rivalry. Tho little rift within the lute has widened ipto a chasm of portentous dimensions. The duel between two institutions has developed into a Donnybrook row, and the policy of the bank managers with regard to each other is “ When you see a head, hit it.” Looking superficially at this important change, it suggests itself that it must be an excellent thing for the borrowing public to have the sinews of war thus cheapened. The casual observer would say, and say correctly, that cheap money must stimulate industry, increase the 0| portunities of labor, develope production, and expand commerce. It is obvious that the reduced interest rate would compel capitalists to east about them for methods of iritelligenlly employing their accumulated funds, and that this might prove more broadly advantageous to the community than theii confining themselves to the role of the bank depositors. The banks individually deplore the reduction they have themselves initiated. They say—How can we profitably pay 3 per cent, interest on Government deposits, and discount two months’ paper at a like nte ? Some of them hold large private deposits, on which they are also paying 3 per cent. Aid it is certainly difficult to understand how they are to provide expenses of management and a dividend for .sbardiolderp, c:t of money borrowed and lent at a similar rate. However, this is a matter for consideration for the banks themselves. What is done is of their own doing, and they cannot expect any deep sympathy from the public if it please them to commit commercial suicide.