FAILURE OF A BANK.

Temuka Leader, Issue 1473, 27 February 1886, Page 1

FAILURE OF A BANK.

Adelaide, Feb. 24

The Commercial Bank of South Australia closed its doors this morning. The stoppage of payment is attributed to the refusal of the Associated Banks to render assistance to the Commercial Bank to tide over a critical period. The tosses of (he Commercial Bank are roundly staled at £300,000. It is announced that depositors and noteholders are perfectly safe, as the uncalled capital amounts to £IOO,OOO, and a further sum of half & million will be obtainable in tbe event of liquidation. A special meeting of shareholders of the Bank has been called for to morrow. to consider its position, Feb. 25. Investigation of the aff.Jrs of the Commercial Bank of South Australia shows its liabilities to be £1,100,000, while tbe assets, after deducting Lad debts, are estimated at £1,280,000, giving a surplus of £IBO,OOO. Ibe failure is attributed to losses on pastoral properties held by tbe Bank. ; A meeting of the shareholder of the Commercial Bank of South was held to-day to consider the position of the bank. The Chairman repored irregularities had occurred on; the p-«rt of the manager and accountant, dummy advances having been sanctioned by them to the extent of £170,000. London, Ft|b, 24.

The failure of the Commercial Bank of Adelaide has not created much surprise here, but it is expected that the South Australian loan, which was to have been placed in the market in April, will now be deferred. I

It is reported that there are English depositors in the JCoramercial 1 Bank to the extent of £3C0,000.

Feb. 25,

The Colonial Bank shares land colonial stocks, which had slightly declined owing to the Commercial 'Bank of South Australia having stopped payment, have now recovered their usual price. The Daily News commends the attitude taken up by tbe Associated Banks in refusing to assist * tbe Commercial Bank to tide over its difficulties. The Times faars that the heavy fall in prices of produce will result in other disasters.