THE FINANCIAL CRISIS.

Wairarapa Daily Times, Volume XV, Issue 4408, 2 May 1893, Page 3

THE FINANCIAL CRISIS.

Another Bank in Difficulties, Lokuon, April 20, Mr 0. J> Hcggsu, Oh airman of tho Saottisb, and Auabralhn Cliartorod Bank, hua issued a circular stating that tbo institution ia iu tho striute&t seasi solvent, and the suspension was the result of an unroaaonftblo panio of tho shareholders, who forced the shares on a restricted market until the depositors in Australia became alarmed. He says that the .accountants appointed by the official receiver to report on the post-

tton of the bank state that it is solvent, and favour tho reconstruction scheme: as equitable and tending to make tbo; bank impregnable, and also to enable the creditors to obtain repayment of at least fifty per cent, of their claims. Mr Heggan continues that a radical change in the Australian banking system is necessary with regard to the receipt of large sums on deposit from the public at short dates, when it is impossible to lend an liquid securities. Debenture stock outjht to take place in the forefront of investment securities. In concluding,' be states that that if tbe scbi-nie is adopted the bank will be stronger than ever. . The; British deposits in the Stand-, ard Bank,: which has suspended payment, amount to £272,000, two thirds of wnfch are deposited by persons in: Scotland.

Mr.T. B. Moxon, in a letter to The Times, suggests that Australia, instead.' of issuing a temporary circulating medium, bad better follow the example of England in the banking crisis a century ago, when -tbe Treasury issued several million pounds' worth of Exchequer bills through; a board of commissioners, I thereby stopping the crisis, with profit to the Government, ■-•

The weekly financial papers con-' demn tbe issue of Hew South Wales notes being made a Srst charge on tbe assets, and state that,it is still more perilous to make them a legal tender. Mzlboubnb, Aprii-80.

The National Bank of will riot re-open to-morrow, pending reconstruction. Tbe sum of £605,000 has been withdrawn since 10th April, The manager has declined tbe assistance of the Associated Banks. Tbo bank in/question conducted a large business in Victoria, South Australia, and Western Australia, and had a jsmall connection in Hew South I Wales.

London, April 30. Tbo Scotchman says it ia impossible to conceive a more disastrous step proposed guarantee to the issue of notes by the Kew South Wales Government. It considers the proposal Ib only worthy of a bankrupt South American republic, and is calculated to permanent discredit on the colony.

Fioe Days' Bank Holiday, The National Banff's fositfon. Svohisv, May 3. Ministers consider Sir John Downer's suggestion for holding a conference in Melbouune to consider tho best means of gutting an end to tbe financial crisis, is too late, as they intend to push on the Bank Bill, and hope to see it osseins law by tbo end of the week.' The National Bank of Australasia waa regarded here aa one of the I strongest financial institutions in j Victoria.

Mslbouhne, May I. The Government has proclaimed it five days* bank holiday, counting from to-day, to allow tbe public exoitement to cool.

[Private cable messages received state that tbe action of the Government bas been taken without consulting tbo Banks.] Ta« Chairman of the National Bank states that the institution has a margin of 40 per coat, between the depositors and tbe.risk of lose. Tha hsl!-;early meeting waa to have been bald ic*d«y, Tha baknea-shent isnows Iba liabilities to' amount toi | £12,863,000, of whieb sba d«poiils ! sfiioaat to JJ9.019,000. The assets linskd* advances to tbe exteat' of j£8,t97,&Q0.' Tha specie and «asb osiaWKW amount to £1,472,000Cb»a upon 25 per eatit, of tb» direct HabUiUsa to tha public are also immediately available. Tha directors inietsded io dwl&S'a a dividand of 10 par" cant foe tbfi baU and. c&rry forward L 3 0,00e„_ AjWLAiBE, MasJ, Qtmt ia e& sisa

which conducted a huge l»uslnc«>i. Tin' Government depraita amounted to M 7 000. Mont of the wheat and milting l>nui)in:in who done by Llain Hunk.