BANKING AFFAIRS.

Press, Volume L, Issue 8485, 17 May 1893, Page 5

BANKING AFFAIRS.

PROCLAMATION BY THE NEW SOUTH WALES GOVERNMENT. rraaa _aaa_U_laii--81<etriQ Xel«s»pb---Ce97«1««.l London, May 15. The Queensland National Bank is applying to the Court for voluntary liquidation. The Exchange is excited by tbe suspension, for which it was not prepared, And surprise is expressed that the Whitsunday term was allowed to approach so near before the intentions of the Bank were intimated.

May 16.

The Standard states that it is impossible for the Bank of England to assist the Queensland Government.

The Times asserts that a prosperous future awaits the Banks still standing if common sense reasserts itself, but the way creditors are yielding to unreasoning fear destroys the interests they seek to protect. It adds that ie is incumbent on the Banks to hold larger cash reserves.

Intense surprise was caused here at the suspension of the Commercial Banking Company of Sydney. The liability here is £800,000, which the assets fully cover. The Cork depositors are applying to the Court for the protection of the assets.

The Standard says that City financiers are genuine in their regret at the temporary stoppage of the Commercial Banking Company of Sydney, and declares that the London office was conducted most admirably.

The suspension of the Queensland National Bank caused but little surprise and was fully discounted. Sir J. F. Garrick does uot expeot much trouble respecting his Government's drafts. The Edinburgh deposits amount to £800.000 and those in Glasgow to £500,000.

Iv the North Queensland Bauk the Scotch deposits amounted to £90,000.

Sydney, May 16

The result of the Conference yesterday between Ministers and bankers is a proclamation by the Government declaring the notes issued by the Banks of New South Wales, Australasia, City of Sydney, and Union Bank, legal tender for six months.

The Government had £300,000 with the Commercial Banking Company.

The scheme for the reconstruction of the Commercial Banking Company of Sydney provides for selling the property aad assets of tho old Bank to the new institution for 80,000 shares at £25 and 48,000 paid up to £12 10s, the remainderto be subscribed over a period of three years. Creditors with current accounts are to accept ten per cent.* of the principal now owing within a month of the registration of the new Bank, five per cent, within the next month, and then five per cent, every quarter, interest to be paid at the rate of 3£ per cent. The Directors will be empowered to pay drafts in full, and creditors may exchauge deposit receipts for debentures, paying interest at 4 per cent.

The Permanent Building Sooiety holds deposits to the extent of £204,000 mostly on fixed terms. A scheme for reconstruction is being prepared.

The Federal Building Land and Investment Society has suspended. The paid-up capital is £85,000. The deposits amount to £43,800.