THE FINANCIAL PANIC.

Press, Volume L, Issue 8484, 16 May 1893, Page 5

THE FINANCIAL PANIC.

THE SUSPENSION OF THE COLONIAL

BANK OF AUSTRALASIA.

MELBOURNE, May 9.

Last week was undoubtedly the most anxious ever experienced in commercial circles in Melbourne. The Treasurer of the colony is Mr G. Downes Carter, who ie a Director of the Batik of Victoria. It was upon hi 3 advice thai, the Government took the steps of proclaiming a live days . Bank holiday commencing with Monday. He feared that the announcement of the suspension of the National Bank of Australasia would cause a disastrous ran on the other Banks, and he hopsd that the five days' breathing time would avert it. There is very little doubt, however, that had the holiday been completely observed tho run would only have been postponed until Saturday, when it would have been all the more severe by reason of the delay. The action of the Bank of Australasia and tne Union Bank, however, averted tfie danger. These Banks declined ts> be shut by order of the Government and kept open from the Monday. The Bank of New South Wales could not act without instructions from the head office in Sydney, and on receiving these opened on Tuesday. Tho Bank of New Zealand also opened, and the Bank of Victoria followed, and subsequently the City of Melbourne Bank. This left only the Colonial of Australasia with shut doors. Shareholders and customers watched its action on Friday morning anxiously, and when it was found to remain closed they were prepared for tlie worst. Saturday morning came, and with it the announcement of the suspension of the Bank. Tho Premier has expressed himself somewhat strongly in reference to this institution having left the announcement to the last possible moment. He said it was a matter of extremo regret that the Colonial of Australasia management if they felt thao the institution must close, had not mado the announcement on Tuesday or Wednesday, rather than on Friday The Government had thought that the best and calmest way of dealing with the crisis was to proclaim a period of rest and consideration, but the sudden closing ojt the Colonial of Australasia had threatened to destroy the good effects the Government had produced. On Saturday morning, however, there was not quite so much excitement as might have beeu anticipated. What there was centred principally round the Bank of Victoria, which, happily, stood the strain. The difficulty is not considered to be over yet, but the news of the despatch from London of 200,000 sovereigns for that institution, among others, will no doubt tend to allay the distrust. The "Colonial of Australasia has been generally known as the Clarke's Bank. Sir Win. Clarke is its Chairman, and he holds the maximum number of shares allowable to one individual. It is a purely Victorian institution, having no branches in any other colony. It had held its half-yearly meeting of shareholders only a week or two ago, when a dividend of 8 per cent, per annum was declared, and at the same time £150,000 transferred from the reserve fund to provide for contingencies. It holds over three millions in deposits.