THE COMMERCIAL BANK FAILURE.

Wairarapa Daily Times, Volume XV, Issue 4388, 8 April 1893, Page 2

THE COMMERCIAL BANK FAILURE.

Resolution to Reconstruct

MkuiOvhhe, April 0. At an umiiosiitHilu woman of shareholdere and depositors in the Comsatiroial Hank of Auutr-jlis, It was unanimously agiwd to reconstruct the tasututlou, a:itl the directors ww insttucteii to takij the necessary steps to carry out the wish of the meeting. £iohi>oh, April S, Tb# depositors in the CoHitnerciul Bank remain but it in stated that they Intend to ask the promotion of the English Courts. The London msti&geiiieat is not blamed in eoimyotion With ttso euapensiou. L'liu bixik hsia bees itßiicgud—it Is believaa" to bo by heavy holders of Broken Hill Proprietary shares, which fell £B, ita tannvgemeot assures depositors that the shareholders will bs the only sufferers, r.nd that it is possible to tide over tlm difficulty, Mr Guinness Mason, of Dublin, is petitioning to have the Commercial Bank of Australia wound up. The amount of bis olaim is £SOOO. The petition is set down for hearing on the 26th inet.

Xiie ob«ine for the Melbourne Metropolitan Board of Works* loan coupons have been returned unpaid, with an intimation that arrangements for payment will shortly be mads. Me David George, Secretary to the ißank of New South Wales,'assures the depositors in the Commercial Bant tb&t it is tolerably certain that I the other Banks will not permit the failure, and that any reasonable pro* pOßft! for reconstruction will be «c~ |copied. [ The Commercial Bank holds fifty thousand pounds of the funds of the South" Australian Government, reI mitted'to the Agent-General, Bir J. ! C Bray. The itttifcude of the Scotch depositors is temperate, aud the agents of s|jl||§l||k *° Glasgow are enquiring affairs. TfrnL r Londos, April 6. from Agent-General's Department has about £SOOO locked up in the Commercial Biink.

The later telegrams from Melbourne considerably modified the unfavourable feeling at first expressed in the city. The idea, of forming an Estates Company is strongly favored. Several bankers and brokers express the opinion that the recent failures will have the effect of modifying the system under which such large amounts of deposits are received by financial institutions having comparatively email paid tip capital. In the event of the proposal for reconstruction failing, the prospect of forming a new and powerful bank to take the place of the Commercial is already being canvassed. The Financial Times considers that tbe Associated Banks must be acquitted, under the circumstances disclosed, of any dereliction of duty in refusing to comply with the demand for unlimited assistance.

Tha Standard thinks that any help required in reconstruction must coma from England, as there is no financial I strength in the colonies at present. The Scotsman declares that before. I the Scotch depositors will extend their deposits, as proposed tinder the reconstruction Bcbeme, thay will re- ■ quire to learn what prospects there are of the shareholders being able to pay calls on-the unpaid capital, since the : shareholders will be certain to find | great difficulty in realising the securities.in thu present demoralised state of monetary affairs in tha Australian colonies.

A broker who was instructed to sett Victorian 3| per cent stock to the amount of £25,000 at any price he could get, realised the whole, at BSJ. Mklbousse, April 7. Mr Harwich,, representing the Scotch depositors in the Commercial Bank, sneaking at the meeting yesterday, said that if the re-oousircction, waseajrriod out promptly, fcs believed the Bank would temporarily open its doors within (lie next 48 hours. In a 'summary of the Bank returns, published in the Australasian Insuraoos and banking Kecerdfo? February the' deposits in the Commercial Bank ! were given as follow: Victoria, ! £4,737.182; New South £®Wi?l2; Queensland. £110881; SoHth Acb'ci'alia, £373,918; Westers Australia, -£f)B,G2i. Advances were aa folios :• Viutoria, £9,818,7031 New South. Wales, £1,322,886 ji Qaeeusknd, £336,884; South Abs? trail's, J£ilS,o9B; Weatera AaitrthK-! £103,871; h ■ ■.■■:-: ;.^\

Tbfi subscribed capital of ih» Com- ■ sasrciai Sank of Australia {Limited) is £3,000,000; paid-up, £1,200,000 rseorve fand, £750,000. Tfaa hsa£ Melbourne, and ibedire&S- ---; im aw Mesara GtKsgs Me&saa, O.SL<£. (otaurmaii), G. S. Coppte, M.L.U., mi M.' Thoaley, MJi,O.. Xlss Co&Soa tirsotors are Msetrs J. Cassb«B <jr. Ooansil and Co*), A.J. MaMa ,3*sses Si'Saraa ead Go,}, and -If, &«*&*(& Brooks and Co.) %|* W*r/ " - ' ,-• _-;