BANK SMASH

Hokitika Guardian, 25 August 1931, Page 5

BANK SMASH

PRIMARY PRODUCERS BANK. CLOSES ITS DOORS. (Australian Press Association.) (Received this day at 8 a.m.) SYDNEY, August 24. The Primary Producers Bank of Australia Limited, with headquarters in Sydney and branches in other States suspended payment as from to-day. Shareholders are to be recommended to place the Bank in voluntary liquidation. The Chairman of Directors, Mr H. Scliwieger announced to-rnght that if the Bank’s securities realised anything like the Bank’s valuation the whole of the depositors should ultimately receive twenty shillings in the pound. The Bank which was established in 1923. encountered unprecedented difficulties, accentuated by the prenounced fall of values in wheat and other primary produce and marked reduction in security values such as country lands. The necessity of maintaining advances to farmers, coupled with the steadily declining deposits, lack Of adequate capital and the inability to obtain temporary accommodation or amalgamation with any other financial institution while most of the hank’s clients were utiable to ■ reduce their indebtness in slightest degree, showed there was no alternative, added Mr Sohweiger, but to close the bank’s doors,

The bank’s paid-up capital is £439,'4Ol sterling and deposits at last balance sheet in February amounted to £i, 483, 845 and assets totalled £2,102,443, whereof bills discounted, loans, advances and other assets accounted for £1,592,318. The Bank held £376086 in liquid assets including £37,890 in cash, £92,000 .at short call and £145,678 sterling in Commonwealth bonds.

Mr Sehweiger added—His Bank was also seriously prejudiced by the closing of the Government Savings Bank of New South Wales.-