BANK FAILURES.

Temuka Leader, Issue 2498, 4 May 1893, Page 1

BANK FAILURES.

London, April. 30

The Scotsman says it is impossible to conceiv'3 a more disastrous step than the proposed issue of notes by the New South Wales Government.

The Scotch depositors refuse to renew with the Standard Bank. One hundred thous,-. ml shares in the Standard Bank are held in Great Britain.

Mayl

City financiers condemn the enforced holiday, believing it to be unjust to the solvent banks.

Melbourne, May 1

Tha Government has proclaimed a five days' Bank holiday counting from to-day to allow the public excitement cool. Tha Chairman of the National Bank of Australasia states that the institution has a margiu of 40 per cent, between depositors and risk of lose. The ha I *-yearly meeting was to have been held to-day. The balance sheet shows the liabilities to be £12,885,000, of which the deposits amount to £9,099,000. The assets include advances, £8,^97,000; the specie and cash balances amount to £1,477,000. Close upon 25 per cent, of the d ; "ect liabilities to the public are also immediately available. The Directors intend to di dure a dividend of 10 per cent, for the half year, and carry forward £IO,OOO. The closing of the Banks for five days' holiday has caused great incouvenience to the public. The Banks were not unanimous in obeying the proclamation, for the Bank of Australasia, the Union Bank, and the Bank of New Zealand opened as usual this morning, but acting on legal advice they were uuable to transact ihe usual business, and confined their operations to cashing cheques, notes and and drafts. Brisk business was done by these institutions, and treble the number of officials usually engaged were employed to take deposits

May 2,

The superintendent of the Bank of Australasia says that the Government did not consult his bank about proclaiming the holiday; if it had he would have stenuously pointed out a grave objection to the course proposed.

The directors of the National Bank of Australia are discussing a reconstruction scheme drawn up on sinr'ar lines to that of the Australian Joint Stock Bank.

Sir Graham Berry in referring to the action of the Government in proclaiming a bank holiday, considers it unaccountable, and contends that compulsory closing should not have been resoi ted to without the unanimous approval of the bankers. The opinion is expressed that the action of the banks in remaining open will have the best possible effect on Victorian credit. The excitement has entirely subsided_ The following banks have resumed business despite the Government proclamation with regard to holidays :—Bank of New South Wales, Bank of New Zealand, Bank of Australasia, Union Bank of Australia, and Royal Bank of Australia. The Bank of New Zealand posted a notice iu the promises to-day, stating that business would be continued as usual and that payments would be made in gold. At a meeting of shareholders and de" positors in the Standard Bauks, the pro* posal for a reconstruction of the institution was unauimously adopted. At the annual meeting of tile National Bank of Australasia to-day, the chairman stated that the balance-sheet was one of the strongest that had ever been submittal.

Sydney, May 1

The National Bank of Australasia was regarded here as one of the strongest financial institutions in Victoria.

In addition to the cable announcing that a quarter of a miUiou of gold hryd, been shipped from London tq the Commercial Banking Oo.mp.an}>; the same institution has a "similar amount on the way out.

At the h? 1 ?-yearly meeting of the Bank of New South Wales, held torday, the re« port was adopted amid great enthusiasm. The not profits were shown to bo £lll,OOO, and a dividend at the rate of 15 per cent, per annum was declared, and. £IO,OOO. carried to the reserve fund, which now anounts to £1,010,000. The balance carried forward to profit and loss account was £15,900. In his speech thy. Chairman said that, despise the depression and fin;uici;il unrest, the Bank had made satisfactory progress, and their whole energies were concentrated on strengthening their reserve.

May 2.

The balance-shftei; of the Bank of New South W tiles shows the large aggregation of £3,450,000 in gold, and £500,000 worth of Government securities.

Matters in financial circles are quintThe Bank BH is before, the Legislative Assembly t'.;