THE COMMERCIAL BANK FAILURE.

Wairarapa Daily Times, Volume XV, Issue 4387, 7 April 1893, Page 2

THE COMMERCIAL BANK FAILURE.

The Shareholders' Position.

Comment Deposits Involved

Melbourne, April 5. Tho Chairman of the Commercial Bank states that if the Bank is forced into liquidation and its £12,000,000 worth of assets are forced on the market, tho shareholders will have to pay up the uncalled cupital, and get nothing in return, Ho declares that thero aro only two courses openliquidation or reconstruction. The first means entire loss, while to adopt the latter course would not inour the loss of a shilling. Adelaide, April 6, Business is inconvenienced by the stoppage of the Commercial Bank. The local liabilities are £305,000, and the assets £533,000. Sydnev, April 5. It is understood that the Commercial Bank had of Government funds. The Lands and Mines Departments, and several minor departments, transacted business through the bank, Financiers are of the opinion that the bank possesses a good surplus, and that its suspension will entail no loss.

London, April 4. The Globe refers to the suspension of the Commercial Bank of Australia as one of the largest of modern failures. Press Opinions at Home. London, April 5, The Daily News says the suspension of the Commercial Bank has oome upon financial circles as a severe shock. The Westminster Gazette, commenting on the failure, describes it as the largest of modern times. Tbe Scotsman considers it imperative that the Victorian Government should prove its sincerity and help the Banks, but the aid must be practica and calculated to impress the publio by its effectiveness, The other Australian Banks, it is apprehended, may suffer by having a narrowed field for the realisation of their resources,

| The bulk of the five millions of British deposits in the Commercial Bank are Scotch. Nearly seven thousand persons in Edinburgh alone da J posited £1,950,860. Much bf the I money came from legal firms and the!

■wealthy olasses, aince of late years the minimum amount tlmt would be taken on deposit was raised to £IOO. Heivy payments for iuterest on deposits were due here to-day, The Times thinks it probable that the capital is looked up in land and house property. Victorian 3| per cents have fallen

_ A feeling is expressed in the City in favour of re-construction, but it is doubted if the Colony can raise the necessary oapital, There is little excitement on 'Change. The Bank had arranged to pay interest to 1000 depositors on Saturday (April Ist), but few applied owing to tile holidays,

Btdney, April 6. Petitions for the liquidation of the Commercial Bank have been filed in Sydney, Brisbane, and Adelaide. The Daily News thinks the assets of the Bank are probably good enough and suggests that they should bo handed over to an Estates Realisatian Company, in the same manner as the Bank of New Zealand assets wore dealt with. Tho etoppage is deplorable, but will not seriously disturb the London market for colonial securities.

The Daily Ohroniole considers tho suspension the most'serious colonial failure that has ever effected England, .snd-tliiii n'is direotly attributable to the land boom.

The New South Walesoavalryregi-I ment are sufferers by the failure of the Commercial Bank. The members ot the team recently sent Home carry drafts upon it, and will land in England penniless. Melbourne, April 6. There is no reason to fear that the stoppage will affect other banks. The Government, however, has been notified that if any institution is threatened tho Associated Banks will offer similar assistance to that proffered to the Commercial Bank.