Banking Crisis in Queensland.

Feilding Star, Volume XVIII, Issue 115, 13 November 1896, Page 2

Banking Crisis in Queensland.

THE NATIONAL BANK ASSISTEI BY GOVERNMENT. LIABILITIES EXCEED ASSETS Bl £2,400,355. Per Press Association. Brisbane, Nov 12. The first official notification concern ing the conclusion of the labors of the Queensland National Bank Commissior was contained in an announcement made in the House by the Premier that he in tended to ask the House to pass the Bill as of an urgent nature through all its stages. The Premier hopes to be able to present the Commission's report on Thursday, and this it is understood will be followed by a second Bill affording permanent reliei to the bank. This Day. The report of the Commissioner on the Queensland National Bank was laid on the table of the Assembly last night. The estimate of the Bank's position is that the liabilities exceed the assets by two million four hundred and thirty-five thousand. That is to say the whole of the paid up capital amounting to eight hundred and ninety - nine thousand pounds, the profit and loss credit of forty-six thousand nine hundred pounds, contingency account of one hundred and sixty thousand pounds, and interest and suspenae account of seventy-five thousand pounds, amounting in all to one million one hundred and eighty thousand nine hundred pounds has beeo lost, and there is still a deficit of one million and two hundred and forty-two thousand. The Commissioners say that in course of their investigation they passed many accounts at face value which, nevertheless, were not returning interest at present. Since December, 1895, they say the interest on many accounts was taken into profit which should either have been carried to an interest or a suspense account, or else not charged at all, therefore it follows that the profits shown were to some extent fictitious. The members of the Commission were decidedly of opinion that no dividends should have been paid since the reconstruction of the Bank, but were not now in a position to state when and to what extent dividends paid prior to that period ceased to be justifiable. The provisions, they say, had been made for losses since the formation of the Bank were inadequate, but the institution notwithstanding the heavy losses sustained, had still a good, volume of sqund and profitable business, and this under careful management should enable the creditors to realise but the Commissioners consider rate of interest allowed on deferred deposits should be reduced if passible to 2J- per cent, otherwise the margin between revenge a,nd expenditure would u,qt permit of any substantial annual proportion being placed towards restoring the stability of the Bank. The Committee estirqate that even on. reduced assets the Bank can pay its expenses and 2£ per cent to its depositers. ' '■" "'- ; " ■ I