THE FINANCIAL CRISIS.

Temuka Leader, Issue 2509, 30 May 1893, Page 1

THE FINANCIAL CRISIS.

London, May 27. The reconstruction scheme of the Loudon Chartered Bank of Australia calls up the remaining liability of £2O per share and provides for the formation of a London Bank of Australia with a capital of £4,000,000. 62,500 ordinary shares will be issued at £4O per share, and 150,000 6£ per cent cumulative preference shares of £lO each. In addition to the Government of Victoria remitting £1,000,000 to retrieve the Treasury bonds the bankers advise the Government to provide another £1,000,000 in order to facilitate conversion operations.. New York, May 27. Mr Charles Foster, who held the Portfolio of the Treasury in President Harrison's Government, has failed. His liabilities are set down at 600,000 dollars. Melbourne, May 27. Shareholders and depositors have accepted the amended reconstruction scheme of the Bank of Victoria. It is expected that the bank will re-open on June Ist. Sydney, May 26. The Premier has received through the Agent-General, an expression of sympathy from the Cape Government with the colonies in their financial troubles, and asking if they could do anything to restore public confidence, either by the purchase of Victorian and New South Wales stock in tho open market or in unissued loans. Sir Andrew Clark and Sir Saul Samuel replied thanking the Cape Government for the offer, which, they stated, it was expedient to decline as the market was improving. Sir G. E. Dibbs also cabled to Capetown expressing appreciation of their sympathy and offer. The reading of the communication was received with cheers in the Legislative Assembly. Cbristbhtjrch, May 26. At the quarterly meeting of the Chamber of Commerce to-day the president, Mr E. S. Harley, in his address to the members made reference to the. financial crisis in Australia. Ha said that New Zealand was to be congratulated on the discreet attitude of its people in this emergency, They camly witnessed the frenzy of the depositors in Australia to secure their gold, whilst they themselves had been satisfied to await the issue rather than increase the embarassment by displaying a want of confidence in our banking institutions. Some time must elapse ere the reconstructed could resume operations with fu.ll power to deal with their assets. Meanwhile considerable inconvenience must be endured owing to the lock-up of many millions of deposits. Money might be scarce, with the result that -the rates of interest might advance. This would produce a deterrent effect on enterprise, and although New Zealand had not in any way contributed to the financial disaster of the last few weeks, it would suffer alike in this respect with its neighbours.