BANKING POWER OF AUSTRALASIA.

Press, Volume L, Issue 8481, 12 May 1893, Page 3

BANKING POWER OF AUSTRALASIA.

TO TUB EDITOR OV THB PRISS. Sir, —In your very interesting leading article to-day I think you have overlooked one of the necessary conclusions of your argument. The great increase of the banking |power of Australasia is doubtless evidence of extraordinary progress, but the question arises: How far ib the progress safe or real. It seems to mc that the present state of things in Victoria proves, first of all, that the banking and othor progress there has been to a great extent fictitious —a progress without principle. Instead of ite being a thing for congratulation, Aβ you eeem to imply, that Australasia should stand at the head of the list with £36 per inhabitant of banking power, does not this faot really show how inordinately the people of Australasia are trading with other people's money. This, indeed, has become the notorious characteristic of the Australasians, both publicly and privately.. I think you will find that the figures representing the banking power per hoad for Australasia bear a very instructive relation to the figures representing the public debt pel head. Australasia had no warrant 01 business to justify anything approaching her present (or rathor recent) socalled banking power. Her Banks, many of them, had been established for the purpose of becoming channels for obtaining deposits of money to be VMed in ways and schemes quito outside the scope of legitimate banking. Many of thoao schemes were ridiculous and extravagant. Even within what would have otherwise been safe banking limits much extravagance was brought about by rivalry in the purchase oi sites and erection of costly buildings. And of course the mischief has been greatly aggravated by the inordinate public borrowing which wont on at the same time. Coming as it did in publio and private streams of such magnitude, no wonder that the flow of money to Victoria produced inflation and found its way into bad and fictitious investments. The marvel is that the appropriate reckoning day has not come sooner. My conclusion is that great banking facilities, like great borrowing facilities, are only desirable when thoy correspond in safe degree to the capital and legitimate possibilities of tho usera or borrowers.— Your*, &0., TB4JDKB.