BANKING AFFAIRS.

Press, Volume L, Issue 8480, 11 May 1893, Page 5

BANKING AFFAIRS.

Vnm AMoalattaß— BlMtrio Telegraph—Copyxi#M. London, May 9. The Times says that two millions of Scotch deposits in the banks whioh have suspended recently are due on the 15th inst., and ie is very probable that a large proportion of them will be withdrawn. The banks are pro* paring to meet the contingency. The prospect of the suspended banks reconstructing on the lines published is less bright. The insurarce question is raising an important difficulty.

The Bank of Victoria is petitioning the Court to protect its assets. Mr Hugh L. Taylor, Chairman of the London Board of Directors, and Mr Fatrclough, another of the Directors, express amazement at the suspension, aa the Bauk was perfectly solvent, and quite prepared to pay all deposits maturing in May.

The editor of the Fortnightly Review invited the Agents-General of the colonies to write an article on the stability of Australian securities, but they declined, explaining that the time was inopportune.

.At the meeting of the depositors in the Standard Bauk, there were only twenty-five preseut. Several objected to take preference shares. The directors then proposed to adjourn. It was stated that early in the year a circular was issued to depositors whose

deposits would fall due in April, May and June, asking them to agree to a renewal, but the request met with a very unfavourable response. The Melbourne Board promised assistance, but the panic iv Victoria followed, and compelled suspension. The Scotch depositors rejected the reconstruction scheme, and appointed a Committee to watch the progress of events in connection with the Institution. They consider the scheme unjust and onesided. Melbourne, May 10. The business of the Bank of Victoria was confined to Victoria, in which colony it had seventy branches. The shareholders and depositors of the Colonial Bank of Australia have adopted a reconstruction scheme. The suspension of the Bank of Victoria has caused a disturbed feeling, especially in country districts, in some of which there is no other Bank available. The reconatruotion scheme leaves it optional with depositors to accepc shares. It is estimated that the suspension of the six large Banks has locked up £40,100,000, of which £19,600,000 ism Victoria, £11,600,000 in England aud the rest in other oolonies. Sydney, May 10. The suspension of the Bank of Victoria oaused no stir here. Banking business appears to have resumed its normal course. Adelaide, May 10. The shareholders and depositors of the Rational Bank of Australasia have accepted a reconstruction scheme.