BANK AMALGAMATION SCHEME.

Temuka Leader, Issue 2759, 5 January 1895, Page 4

BANK AMALGAMATION SCHEME.

Melbournis, Jan. 3. A scheme has been formulated by a number of leading Melbourne accountants for consolidating the five Victorian banka on a national baaia. The memorandum points out the advantages such a union would secure. By proceeding upon a twofold basis it is suggested to form two separate amalgamations, one to include the less convertible assets of each of these banks. In formulating the scheme the objects kept iu view were to convert the deposit receipts and preference shares of existing banks into securities lees liable to depreciation, and more realisable; to reduce the annual interest charge but to capitalise or pay the value of the difference iu the rate of interest, for the term of existing contracts, between that now borne and the reduced rate; to gain advantage from the reduction of working expenses incidental to the consolidation ; to render a speedy realisation of the less convertible assets unnecessary, and to leave such realisation to the discretion of the management when conditions are favourable; the shareholders to pay calls as at present, excepting within definite limits, but without relieving them of the ultimate responsibility to pay calls to an amount equivalent to that for which they are now liable in case certain events happen ; to obviate any necessity for at present making valuations cf assets for the purpose of amalgamation by providing that any losses which might arise in connection with the realisation of assets should ultimately fall upon those only who are at present interested iu the assets.