BANKING AFFAIRS.

Press, Volume L, Issue 8476, 6 May 1893, Page 7

BANKING AFFAIRS.

THE RECONSTRUCTION SCHEMES. ANOTHER SUSPENSION. Presi &MoeUU«i*—BlM-ie Teta~»t»h— Oapyrietal. London, May 4. At a banquet at the Mansion House Mr David Powell, Governor of the Bank of England, expressed his siuoerest sympathy with Australia, and recognised their pluck In meeting the difficulty without runuing to the Bank of England for assistance. He deprecated the abuse which is being heaped on the colonies, Tlte Times considers that if the English and Scottish aud Australian and London Chartered Banks were to amalgamate reconstruction perhaps would be successful. Forty depositors and shareholders attended a meetiug in Edinburgh of the English, Scottish and Australian Chartered Bank. Mr Blair, Writer to the Signet, representing small depositors, objected to the scheme, because it was proposed to carry through a composition by payiug the creditors with security of uuknown value and not in cash. The details too, he thought, were radically bad. Other depositors also objected to the scheme, on the ground that it was unfair to involve the depositors in a loss of threequarters of a million pounds, when the shareholders lost nothing. Mr Blair estimates that if the assets are liquidated there will be a sum of £4,900,000 available to meet a liability of £3,343,000. Sir J.C. Bray, Agent-General for South Australia, upon seeing the failure of tne National Bank of Australasia, announced in the Monday papers, rushed off to the Bank and demanded surrender of three bills of £12,500 each, which had been entrusted to it for collection. The officials demurred, but Sir J. C. Bray insisted on his strict legal rights and eventually obtained the bills. The whole amount thus saved waa lodged in the Bank of Adelaide. The officials of the English, Scottish, and Australian Chartered Bank and the London Chartered Bank of Australia deny k the reports that these, two Institutions intend to amalgamate. May 5. At a private meeting of the principal Scotch shareholders and depositors in the London Chartered Bank of, Australia, the draft scheme for the reconstruction of the Institution was accepted. The direotors of the English, Scottish and Australian Chartered Bank have slightly modified the reconstruction scheme, which will be proceeded with irrespective of opposition on the part of a number of Scotch depositors and shareholders.

The experts deolare that it would be easy to arrange an amalgamation between the London Chartered Bank of Australia and the English, Scottish and Australian Chartered Bank.

T/ie Times doubts whether further suspensions of Australian Banks are probable, although there may be some minor casulties. The best financial authorities believe the worst is past. The following shipments of gold are to be made to Australia :—Commercial' Banking Company of Sydney £200,000, Bank of Australasia .6250,000, Union Bank of Australia £250,000.

Melbourne, May 5. With the exception of the Colonial Bank of Australasia, all the Banks have re-opened.

Dalness and stagnation have succeeded the rush and excitement of a few days back. Latbr The Colonial Bank of Australasia has suspended payment. At the annual meeting whioh was held last week the balanoe-shee. showed the profit had heen -£32,000, and a dividend of 8 per cent, was declared, while £13,000 was carried forward. The Directors transferred £150,000 from the reserve fund to provide for contingencies. The Bauk ocoupies a strong position, and has eighty-two branches in the colony. It was thought that the demand from these branches might mean a very considerable withdrawal on re-opening tomorrow, and the Directors therefore decided not to open but to re-construct the Bank, bringing it under the Limited Liability Companies Act. Stdnet, May 5.

The passing of the Bauk Bill has already apparently had the desired effect, as * the Government do not intend to issue a proclamation declaring notes legal tender for the present.

Tbe Colonial Bank of Australasia was incorporated by Act of Parliament in 1856. The head office is in Melbourne, and the Directors are Sir W. J. Clarke, Bart., Governor; Mr Wm. Smith, J.P., DeputyGovernor ; H. M. S. Williamson, M.L.C.; MrT. Russell and Mr J. J. Smart. The nominal capital is £100,000; paid-up capital, £406,850 ; uncalled capital, £187,500; reserved liability, £625,000. Following is tbe balance for the half-year ending September 30th, 1892: — Dr. £ s. d. Capital .. .. .... iO&jtoQ 0 0 Resene.und .. .. ._ 287.500 0 0 Profit and loas .. ....«, 40.011 3 A Notes in circulation .. _» 107,968 0 0 Bills iv circulation .. .. 98,033 18 7 Balances doe to other B*nks.'.. 75,:J54 1110 Deposits . .. 3,5.4,185 11) 8 Interest accrued thereon _. 57,163 5 l £-,536,328 15 6 C_E__r Coin, bullion, and oash balances 457,323 10 0 Balances due from other Banks 38,727 12 1 Foreign bUls in transitu .. 1*7,207 12 6 Bills receivable and other __ _ - advances .. <» . .. 3,670,90317 8 Government and other debentures .. .. .. .. 21.683 0 0 Bank premises - 203-83 S 3 £..£%328-5 6