BANKING INSTITUTIONS.

Temuka Leader, Issue 1113, 2 June 1883, Page 3

BANKING INSTITUTIONS.

At the meeting of the Dunedin Chamber of Commerce Mr R Wilson, the Chairman, said on last Wednesday said; Before sitting down there is another subject on which I would like to say a few words, and tiiat is the present dullness of trade throughout this province, and New Zealand generally, and the scarcity of money that is affecting all classes alike. At the close v of one of°tho most productive harvests that has been known for some years, when money should be abundant and trade elastic, we have wide-spread depression ; the banks pulling up their customers, and in every way seeking to withdraw the accommodation these institutions hare hitherto given to aid and stimulate trade. Numerous failures have followed from the inability of traders to gather in their assets, and to meet the demands of the Banks for repayment of their advances. I am not sufficiently a financier to be able to give a satisfactory reason for this state of things. As a rule we all lean too much on the Banks. Wfcen their coffers are full we know how ready they are to back up many a concern that would better he wound up. If we look at several recent failures in Dunedin, what do we find 1 That on three estates which are now being realised a loss of £25,000 in hard cash has been sustained by wholesale dealers of this province, a loss which, but for the system pursued by the Banks in giving overdrafts to an extent they were never warranted in allowing, would not have arisen. The Banks know well enough how to protect themselves, even at the expense of other creditors, and when the ciash eomes, the too confiding creditors are called together to learn that the Banks have possession of bond warrants. and any other security they could lay their hands upon, and by thess means usual'y go scot free. Useful as banking institutions are, they are not an unmixed good in these colonies. I think the system of credit requires looking and the sooner that is done the better it will be for this community. So long as the Banks invest the larger portion of their assets in land and squatting securities commercial interests will be liable to these periods of depression. When it comes to winding up a pastoral estate, hesitotion is shown lest other similar securities should be affected. I wish the same forbearance was shown by the Banks where commercial interests are at stake, as I feel assured we should have to submit to fewer losses and a more healthy state of things would soon come round than has been the case for the last few months.’’