THE DEPRESSION IN AUSTRALIA.

Press, Volume XLIX, Issue 8095, 11 February 1892, Page 6

THE DEPRESSION IN AUSTRALIA.

SUSPENSION OF ANOTHER

COMPANY.

[FKOM OUB CORRESPONDED XJ.

{By Telegraph —From Auckland.) MELBOURNE, February 3. The suspension of another Financial Company is announced this morning, and curiously enough it is another .of Sir M. H. Davies 5 Companies. Thus, since his letter in the " Argus " of Saturday, contradicting the rumours as to his financial embarrassment two of his companies have closed their doors, namely, the Freehold Investment and Banking Company, and now the Victorian Mortgage and .Deposit Bank. The manager ot the latter is Mr Mercer, a brother-in-law of Sir Matthew's. A circular has been Issued to all the depositors, requesting them to agree in writing to renew their deposits for tnree years at the rate of 6 per cent per annum, otherwise the bank would be obliged to go into liquidation. The institution was founded three years ago, and last year opened a London branch, which, however, soon closed. It has alway3 paid a dividend of 8 per cent since it was established. Since the end of September last the deposits have fallen off from £159,000 to about £100,000. The uncalled capital amounts to £172,000, so that in _ the event of liquidation the money deposited would appear to be quite safe. A telegram in this morning's papers also shows that the financial stringency continues in Sydney. The Directors of St. Joseph's Investment and Building Society have issued a circular to the depositors, proposing that payment should be suspended for tnree months, receipt , of interest on deposits as they fall due, that at the end of that time all deposits of £50 and under be paid in full, that all other deposits should be deposited on maturity for five years, repayable in equal instalments hi one, two,three, four and five years, in the meantime interest thereon at 5 per cent, to be paid. The circular, which states that the [Society is in a perfectly sound condition, shows that the assets on 30th September last amounted to £480,673 and the liabilities to £344,472, the surplus balance being £136,201. It is also shown that the Society's properties are good and sound. During the recent panic in commercial circles the withdrawals were very, heavy, and the Society arranged for an overdrawal at the Bank of £50,000. This overdraft has not been expended, but as the withdrawal steadily continued the Society decided to take the course above-mentioned. The deposits on 30th September last amounted to £516,968, and now they amount to £285,914.