ANOTHER AUSTRALIAN BANK FAILURE.

Auckland Star, Volume XXIV, Issue 93, 21 April 1893, Page 2

ANOTHER AUSTRALIAN BANK FAILURE.

Another Australian Banking Corporation —tho Australian Joint Stock Bank t whose head offices are in Sydney—has deemed ib prudent to close its doors owing to the run which is being made upon it 6 deposits. Our telegrams state that the bank suspended at midnight, but re-opened this morning to receivo new account 8 pending reconstruction.

The announcement comes as a Burpnse, no rumour apparently having _ gained currency in the press impugning the stability of this institution. Its capital is £1,000,000 (£704,394 paid up), and its reserve funds represent a total of £517,000. Its deposibs amount to £10,800,000, of which four millions consist of deposits outßide the colony. The Board of Management in Sydney comprised:—Hon. Jeremiah Bryce Ruudle, Esq., M.L.C. (Chairman), Geo. A. Murray, Esq., W. Friend, Esq., L. Phillips Esq., Hon. W. A. Long, M.L.C, and Chas. H. Myles, Esq. Auditors : John S. Dunlop, Esq. ; Dr. A. K. Morson. Solicitors : Messrs Fisher, Ralie, Maoansli, SteDhen, Jaquea and Stephen. Directors, London: William Morb, Esq., William Hernruant, Esq., William Gardiner, Esq., Sir Saul Samuel, K.C.M.G. Auditor: A. H. J. Baaes, Esq. Bankers: National Provincial Bank of England, Limited.

It would appear that the recent suspensions have caused a groundless panic among depositors,, which, is more pronounced in Australia than in England, where, wo learn from to-day's cablegrams, bank shares are recovering, lfc ia not unlikely also that the management of the banks which have suspended, having a large portion of thoii"trading resources looked up in securities that are nob easily realisable, took alarm at the.first signs of a run and considered ib prudent.to prevent any undue strain being made upou their resources by adopting this, extreme measure. The management would never incur the responsibility of re-opening the doors unless they were absolutely assured of the solvency of the institutions which they control. It is fortunato that iNew Zealand passed through its crisis some yeara ago, and that the conditions of iba business and public revenues now are such as to create confidence both within the colony and in London. The announcement made yesterday thab our railways this year will pay three per cent, interest on the capital invested in them, will strengthen this good impression in London. Severo as the financial stringency was «n New Zealand at its crisis, it never reached a poinb so acute as thab which has followed the general inflation in the Austrahan colonies, and while wo sympathize with our neigh, boura in their difficulties, there is ft. certain pmoupb of eatJßfacbion fa . knowM* thab the public men and financiers of Ixew Zea-

land exhibited greater copaciby in the hour of trial than appears to have been displayed by the magnates of the great cities of the Australian continent.