BANKING TROUBLES.

Evening Star, Issue 9123, 2 May 1893, Page 2

BANKING TROUBLES.

[Per Press Association.]

MELBOURNE, May 1, The closing of the banks for a five days' holiday has caused great inconvenience*to the public. The banks were not unanimous in obeying the proclamation, .for the Bank of Australasia, the Union Bank, and the Bank of New Zealand opened as usual this morning, but, acting on legal advice, they were unable to transact the usual business, and confined operations to cashing cheques, notes, and drafts. Brisk business was done by these institutions, and treble the number of officials usually engaged were employed to take deposits.

May % (Received May 2,1893, at noon.)

The directors of the National Bank of Australia are discussing a reconstruction drawn up on similar lines to that of the Australian Joint Stock Bank.

Sir Graham Berry, referring to the action of the Government in proclaiming a weok's bank holiday, considers it unaccountable, and contends that compulsory closing should not have been resorted to without the unanimous approval of tho bankers. The opinion is expressed that the action of some of tho banks in remaining open would have the best possible effect on Victorian credit.

There is a feeling that the depositors who caused the stopjmge of the National Bank of Australasia were guilty of a piece of stupendous folly. The superintendent of the Bank of Australasia says that tho Government did not consult his bank about proclaiming tho holiday. If they had he would have strenuously pointed out the grave objections to the coiir.se proposed. His bank have large interests everywhere, and the management feel it incmnl>eiit upon them to maintain the credit of their institution throughout the world. The oi|ly effectual course, therefore, was to keep open, even at the risk of straining at the legality of the position. Tho bank had always acted loyally by the Government, but they were compelled to show that they were prepared to meet all eventualities. SYDNEY", May 1. The feeling in the city is that the Victorian Government made a mistake in proclaiming a bank holiday. The Government received a telegram from Premier Paterson, of Victoria, announcing the course adopted, but the New South Wales -Cabinet are satisfied to push on tho Bank Bill. In addition to the cable announcing that a quarter of a million of gold had been shipped from London to the Commercial Banking Company, the same institution has a similar amount on the way out. May 2. (Received May 2,1893, at 11.10 a.m.) The balance-sheet of the Bank of New South Wales shows the large aggregation of £3,450,000 in gold, besides £560,000 woi fch of Government securities. The Government have further considered the Revised Bank Note Issue Bill.

At a mooting of the Cabinet the proclamation of a holiday by the Victorian Government was discussed, but it was resolved that, as all excitement had calmed down in Sydney, such a course was not necessary here.

ADELAIDE, May 2.

After an interview with the bank managers Premier J. W. Downer states that there is no panic in this city, therefore no call for any governmental action. The banks, he said, were prepared to pay all claims.

LONDON, May 1. Scotch depositors refuse to renew with the Standard Bank. One hundred thousand shares in the Standard Bank are held in Great Britain.

' The Times,' replying to a hostile correspondent, advises the acceptance of the scheme for the reconstruction of the English, Scottish, and Australian Chartered Bank, which it considers is better than liquidation.

(Received May 2,1893, at 11.15 a.m.)

The City financiers condemn the enforced bank holiday in Melbourne, believing it to be unjust to the solvent banks.

The National Bank of Australasia arc applying to the Court to protect their assets.

The Official Receiver thinks that no definite scheme for the reconstruction of the London Chartered Bank of Australia will be evolved until the result of the meeting of shareholders of the English, Scottish, and Australian Chartered Bank is known.