THE N.Z. LOAN AND MERCANTILE AGENCY.

Wairarapa Daily Times, Volume XV, Issue 4468, 12 July 1893, Page 3

THE N.Z. LOAN AND MERCANTILE AGENCY.

Payment Suspended,

Private advices were received by nj from Wellington Jast night, stating that owing to tho recent financipl disasters, ike New Zealand Loan and Morcauti'o Agency Company, Ltd., has beon obliged to suspend payment pending reconstruction. The news im9 caused quito a sensation here, as tho Company baa many clients iu tlipso parts, From Mr Batiley, general math fger uf the Lusn and Mercantile Company in New Z al.'iid, ibo New Zealand Horald Ims received the following information The suspension is absolutely duo to tlio recent and still existing banking crisis in tho Australian olouies, and not to any» thing conncoted v/iih the business of the company. The company have, in common with other financial institution', all along held considerable deposits in Melbourne and Sydney, and, as a matter of course, ibesc havo recently been largely withdrawn. Confidence in every institution has been shaken, and tho locking up of large sums, by the suspension of the banks, lias in many cases compelled people to withdraw doposits whenever they could. Tho suspension of so many banks has also very mucb craiupod ordinary financial resources for conducting commerce, and disorganised facilities fur oxchango with England. The reefiit fitwpi'csion of Messw Goldsbrougb, Mort and Co., who carried on the eume kind of business as this company, has also very greatly aggravated matters, and contributed materially to the cansos which havo brought about the suspension of tho Loan and Mercantile Agency Uompaay. There is nn difficulty in regard to the debentures ; they have not affected tho position at all, or only slightly. Nothing haß occurred in New Zealand to in any way contribute to tho suspension. The business here has been conducted on safe, prudent and conservative lines. Tho company holds deposits in New Zealand, but there have been no withdrawals beyond merely the usual amount. Thero will be as litile interruption of business as possible, Tim formalities necessary to reconstruction will have to bo gone through, but business will be resumed as usual at any, early date. Every effort will be made to avoid inconvenience to the company's cuntomera, und to maintain the very valuable businesswhichhasbeen built up. The balnnto sheet issued by tho company in January last Bhowod tho Company to bo iu a good position. Theposition ban been maintained since, but the suspension has been rendered necessary by the withdrawal of deposits, as above stated, consequently on the financial panic which recently prevailed in Australia.

Tho authorities of the Bank of New Zoaland state that the bank «ill not make any loss by the suspension of the New Zealand Loan and Mercantile Agency Company, the advances to the company being not only much reduced but amply covered by good realisable securities. The banking accounts of the company in Australia and Loudon havo not been kept with the Bank of New Zealand.

Tlio nominal capital of the company is L' 1,500,000 (in 180,000 shares ofL2sfach), of which £4,000,000 is subscribed and £802,642 paid up.

Referring to the matter, our Wellington correspondent writes I The news of the suspension of the N. Z, Loan and Mercantile Agency Company came with a great shook of surprise to most people here, The knowing ones, however, assert that tbey have bad their doubts as to the Company's ability -to stand tho strain caused by tho Australian financial disasters, for some time past. It is said about town that reconstruction will not be a very difficult matter as tho Company is possessed of so many valuable accounts and easily liquidated assets. The suspension will, however, no doubt cause much financial embarrasment to the Company's clionts in thin Colony and may altogether be looked upon as a national disaster, for one never knows that one crash may not bring others down in its train,