FAILURE OF A MELBOURNE BANK.

Waikato Times, Volume XIII, Issue 1085, 7 June 1879, Page 2

FAILURE OF A MELBOURNE BANK.

MELBOURNE, June 5. The Australian and European Bank, established nine years, stopped payment at 11 o'clock to-day. The Associated Banks, after investigation, declined to advance £50,000, but are willing to cash their notes. They are also considering a proposal to secure the depositors. The failure is attributed to the circumstance of ! having had' nearly £200,000' deposited on call. '• A severe ran has taken place on the City of Melbourne Bank. Demands have been promptly met, and the bank is keeping open until 8 o'clock this evoning. Should 'tho run cbntinue, tho Associated Banks are willin&r to assist. The suspension of the Australian and European' Bank is announced. The liabilities are not large. The notice on the doors of the Australiau and European Bank slates that the directors hope to re-open shortly, and to liquidate under the auspices of tne Associated Banks, who will protect their. notes. The Australian and European Bank's estimated liability is £50,000, and the probable assets, £600,000. A rim haa been made to-day on the City of Melbourne Bank. It is, however, believed to be financially sound. The Bank has published a notice that the doors will be kept, open for business till eight o'clock to-night. SYDNEY, June 5. - The Sydney branch of the Australian and European Bank was closed upon the receipt of intelligence from Melbourne of the closure. A Melbourne telegram m the • Evening News ' predicts a great commercial failure. BRISBANE, June 5, The Treasurer has introduced his financial statement. He estimated the revenue at £1,658,000, and the expenditure at £1,606,000. A new loan of £3,000,000 is to be raised for Immigration and Public "Works.