Australian Banking.

Feilding Star, Volume XVI, Issue 304, 28 June 1895, Page 2

Australian Banking.

« (Per Press Association.) Melbourne, This Day. At the banking conference Mr Turner, general manager of tho Commercial Bank of Australia, stated the banks reaped no profit from- their note circulation since thctt-jte tax was introduced. HoJL__U«»_a_***tj_e banks wore willing to "_T_rronder the privilege but must have a noto currency of some kind. Ho thought the issue of State notes would bo satisfactory to the public but disappointing to the Government, because the highest point Victorian note issue ever reached was £1,000,000 and averaged L.1,200,000. At the present time his Bank mado no profit from current account credit balances. They must enlarge their capital with the growth of business, and a safe rule to lay down was that deposits should not exceed double the amount of the banks' capital. He set down the amount of gold hold by tho banks at about £8,000,000 sterling, which ho considered was sufficient for tho business of the country. Ho did not think that the English system of restricting business to what was called liquid assets suitable for the colonies. He advocated tliey should do laud mortgago as well as regular commercial business. All banks had made considerable advances on land, and money in many cases was practically locked up. Fully eighty per cent of agricultural holdings were mortgaged.