ANOTHER BANK FAILURE.

Wairarapa Daily Times, Volume XV, Issue 4386, 6 April 1893, Page 3

ANOTHER BANK FAILURE.

The Commercial Bank of Australia, Melbourne, April 4. > Tho Commercial Bank of Australia has suspendod payment, It is reported that the Associated Banks offered tho institution the sum of two miliums sterling, hut tho offer was declined, as the amount was insufficient to tick the Bank through its difficulties. Me rumour, however, lacks conGrmatior\ No further particulars are available to-night, \ London, April 4. The brunch of the Commercial Bank of Australia in London closed its doors immediately notice was received from thu head office. Tho directors aro proparintr »ti announcement which will be made to-morrow. The bulk nf tho deposits arc Scotch. The insurance companies are heavily hit by the failure. The officials of the Banks were expecting the disaster for some days be- | fore the Easter holidays. I Die British deposits amount to i £5,000,000. i It is expected that the failure will Seriously affect thu weaker banks. The Scotch depositors are certain to continno to withdraw, Tho opinion or tho financiers and hankers is that tho i efl'ec', of ting failure will he most dis- < astrous. \ April 5. j The Comnißicial Bank suspended < in consequence of the withdrawals i being so persistent and so heavy that ' it was impossible to overtake the , exceptional demands upon tho ro- i sources of the Bank by calling in '■ advances. ' The offer of £2,000,000 by the ! Associated I lanke is confirmed. The, Commercial Bank Directors, however, could not fix any definite amount, hut asked tho united hanks to support them to such an extent ns they might require. This the latter could not see their way to do. 01 tho deposits, about £5,000,000 is duo to tb« United KiiiKdcm, and nearly £ 0,000,000 to the Colonies, The paid-up capital amounts to £1,200,000, ol which one-sixth is upon the London register. The reservo fund amounts to £7500,00. ' As in the case of tho Federal Bank the difficulties of the institution wer only in Melbourne and Sydney, Th G branches did satisfactory business. Sydney seems likely to suffer most by the failure, owing to the fact that when the hank acquired the business of the Mercantile Bank tho shareholders in the latter were paid in the new shares of tho Commercial. Tho last quaiterly averages show that Sydney deposits amounted to L97G.000. The directors had prepared a schome ol reconstruction under which it v/bb proposed to go into voluntary liquidation and form a new company with a capital of six millions—3oo,ooo shares of £lO each to be subscribed for by the creditors, and 800,000 ordinary, paid up to £4 each, to be allotted among the present shareholders,