AUSTRALIAN SUMMARY.

New Zealand Times, Volume XXXIV, Issue 5683, 17 June 1879, Page 2

AUSTRALIAN SUMMARY.

(PER TARARUA AT TUB BLUFF.) Melbourne, June 11. Considerable excitement was caused last Thursday morning by an announcement which was posted on the doors of the Austz-alian and European Bank announcing that the. bank was closed, but that it hoped soon to reopen, and that in the meantime notes would be paid by the Associated Banks. Crowds quickly gathered round the bank premises, and tho news speedily spread. Then a run occurred on the City of Melbourne Bank, in Collins - street, and something like a panic set in. Various institutions and private firms were freely mentioned, and matters began to wear a moat serious aspect. It soon transpired, however, that the affairs of the Australian and European Bank were not so serious as at first anticipated, but that the directors felt themselves compelled to adopt such a serious step as shutting the doors of the banks. The assets were reported to be good, and there was no doubt whatever but that all the depositors would be paid in full. The run on the City of Melbourne Bank continued the best part of the day, but the Associated Banks came to the rescue aud offered any assistance which was required. This had a reassuring effect, and when about £30,000 had been paid over the counter, the run was stopped. The bank was kept open till eight at night, in order to afford every facility for customers obtaining their money. Next day, however, much of the money drawn out was re-deposited. The Australian and European Bank continues closed, but will be re-opened in the course of a few days, as the shareholders aud depositors, in meetings assembled, have expressed full confidence iu tho directors. A call is to be made on the shareholders, which will bring in £60,000, and raise the paid-np capital to £130,000, and make the amount £3 10s. per share. The fact is, that the directors have been doing too much or too little. The branches are now to be much diminished, and the business of the bank greatly restricted. At a meeting of depositors yesterday, 150 shareholders, representing £96,000, agreed to continue their deposits, and at both meetings of shareholders and depositors a good deal of enthusiasm was manifested. It transpired that the Australian and European had applied to the Union Bank for £SOOO, and this had been all but promised, but at the last moment, after a discussion amongst the Associated Banks, it was refused, aud the Australian and European Bank had no other course open but to close the doors. The panic on Thursday was followed by perfect calm on Friday, and so far no disastrous results have followed. One failure is announced, that of Isaac Lyons, auctioneer, for £17,000, but he had been guaranteeing insolvent firms.

The Provincial and Suburban Bank is to be wound up; valuators and liquidators have been appointed. The directors informed the shareholders that the assets will realise from £15,000 to £20,000 more than was at first stated, and that a call, realising £IO,OOO, together with the previous assets, would be sufficient to pay off all the liabilities.

The whole system of banking has now been brought under review. There is no doubt that the measures taken by the Associated Banks on Thursday had the effect of stopping the panic. In the first place they paid the notes of the Australian and European Bank, and proffered uninvited aid to the City of Melbourne Bank, but the latter were enabled to meet all demands from their own resources.

There has not been much stirring in political circles, and very little will be done until Mr. Berry’s return next week. The weather has bean cold—seasonable, with very little rain.

Good progress is being made with the Exhibition.

Representations are being made in all the colonies for an Intercolonial Cricket Match, to be played .this year in Sydney, and a return match next year in Melbourne. Mr. R. McGregor, one of the members for Fitzroy, is insolvent, and hia seat in the Assembly thereby becomes vacant. Amongst the names of the candidates mentioned are Messrs. Vale and Langton. It is proposed to hold a Social Science Congress during the Exhibition period. Hogan, who shot his brother at Oarrowonga a short time ago, was executed yesterday at Beechworth.

Scares are frequently being raised as to the whereabouts of the Kelly gang, but the police are unable to come upon any traces.

“ H.M.S. Pinafore ” is being played simultaneously at the Academy of Music and St. George’s Hall. “ Henry TV.” is still being continued at the Princess Theatre.

Business is still very dull, and complaints are everywhere general. Mining is slightly improving. The new rush near Orville, Dunolly district, is turning out well, and there is more inquiry for mining shares generally. There is something like a deadlock in Tasmania, where the Council refuses to vote more than six months’ supplies, and have also rejected an Income and Property Tax Bill. Ministers have not yet indicated what course they intend to take. West Australia has been celebrating the Jubilee -of the foundation of the colony. It has been ascertained that there are still seventy persons living who came out in 1829. In Adelaide the financial policy of the Government ia regarded unfavorably by the Op-

position, and an amendment in an address to the Governor’s speech was tantamount to a want of confidence. It is now being discussed, but will probably result favorably to the Government.