THE RUN ON THE AUCKLAND SAVINGS BANK.

Auckland Star, Volume XXIV, Issue 208, 2 September 1893, Page 4

THE RUN ON THE AUCKLAND SAVINGS BANK.

Calmness supervened upon reflection la S |j night, and a good many depositors in the Auckland Savings Bank who sacrificed a month's interest by hastily closing their accounts yesterday, musb have felt in no amiable mood towards the persons who were responsible for the circulation of tho canards which resulted in the run on the bank. Cheques given yesterday were in some instances returned to the institution to-day withoub having been tendered for payment. The bank this morning presented a remarkable contrast to yesterday's scene, tho chief business being transacted by the receiving teller. The amounb paid in to-day was double the Bum withdrawn.

The Government acted with great promptitude last night. The Colonial Traaeurer brought down his Bank Noto Ifisue Bill, which was passed through all stagas in both Houses, and ha also intimated that if it werefound necessary, the Government being absolutely satisfied of tha sound position of the Auckland Savings Bank, would guarantee the whole of its deposits. No doubt, this assurance assisted in the complete restoration of public confidence, bub practically the panic had subsided by four o'clock yesterday afternoon. When the Bank raopened from five to seven, in accordance with the notice posted up ab the usual hour of closing, comparatively fewdepositors presented themselves, and the officials were chiefly occupied in clearing up tho litter caused by the day's " run." The Bank Note Bill, passed through Parliament yesterday, is founded on the Bill which was enacted in New South Wales during the recenb panic. It makes the authorised note issue of every bank a first) charge upon its assets. This has been the law in Victoria for some time and ib is a provision which ought to have been embodied from the first in all bank charbore. When a Government legalises the issue of a paper currency, such as all bank charters authorise, it oughb to see that tho public who are obliged to accept these notes are fully protected.

There is further power in the Bill, enabling tho Government in time of panic to mako bank notes a legal tendcir for a limited period, provided thab no such proclamation shall be issued with respect to any bank unless the Governor-in-Council is satisfied that as betweon the bank and its creditors its assets exceed its liabilities by at least tho sum of the paid up capital and reserved profits. We believe the power conferred under this provision was quite unnecessary as applied to this colony, nevertheless, while a feeling of unrest and distrust is abroad like that manifested in tho groundless run upon the Auckland Savings Bank, tho Cabinet have displayed a wise foresight in adopting precautions beforehand, in- | stead of waiting helplessly, as was done in ■ the neighbouring colonies, until one sound financial institution after another had been overturned in some mad, unreasoning panic,