OUR AUSTRALIAN LETTER.

Evening Star, Issue 9123, 2 May 1893, Page 3

OUR AUSTRALIAN LETTER.

[From Our Mt;i,noiiiNFi Corrksponpknt,

Wkdnksdav, April •2d.

I'tlUTIl'AI

Although Messrs Huddait, Parker, amM'o. have failed t«» secure (lie support of the Victorian (iuvernmcnt fur tin; (Canadian iiKi.il service via Vancouver, tliey liave decided to try the experiment, of putting steamers on the new route. The Miowera is to make this pioneer trip, and she will leave Sydney on May II and Moreton Ray two days later, being timed to arrive; at Yaneouve. on dune .'{. She is to be followed within a month by the Warrinioo, whose date of despatch is fixed for J line S. The reason that the (iovernincnt has declined for the present to subscribe the i'(S,IKM) asked for is that Messrs Huddart, Parker, and Co. cannot see their way to make Melbourne the terminal port of the service in Australia instead of Svdney.

An Act passed by the Victorian Parliament last session, at the instance of Sir Frederick Sargood, M.L.C., to prevent "spec." selling in bank shares, has now come into operation. It provides that the numbers of the shares sold or the name of the person in whose name such shares stand at the time of selling shall be delivered in writing to the buyer or his agent within twenty-four hours from the time of the sale. Kvery person, whether principal, broker, or agent, who wilfully neglects to supply'the numbers or the name will be guilty of a misdemeanor and be punished accordingly. The New South Wales Government has met with a decided rebuff from the Legislative Council, which has declined to pass an Income Tax Rill. The Ministry has consequently had to fall back upon further measures of retrenchment as a means of making expenditure come within the current revenue. The Civil Service has grown to enormous proportions under the political system of appointments in vogue in the mother colony, and there is plenty of room for large reductions in connection with it ; but it is doubtful whether Sir George Dibbs ami his colleagues will bo able to push their retrenchment scheme to the extent that will be necessary, and the unsatisfactory condition of the finances is likely to continue until a general election takes place and a strong Ministry is returned with the country at its back. At present the Government holds office through the support of a bare majority, and it may find itself in a minority any day. The parliamentary business of the colony is in a very backward state at the present time, the Estimates which should have been passed last year being still undisposed of, and the Government having to carry on by means of monthly Supply Bills. The land-grant railway system which has been propounded by the Queensland Government is meeting with considerable opposition. A very lively meeting was held at the Centennial Hall on Monday evening. Various maps were exhibited from the platform. There were a "gridiron" map, a Government map, and a colored map. Although invited to do so, the defenders of the Government map would not go upon the platform, with the one exception of Mr G. L. Hell, but it was impossible to hear him, as the audience created a terrible disturbance, and be had to sit down. The feature of the evening's proceedings was a very strong speech by Sir Charles Lilley, who was received with the greatest enthusiasm, and denounced the land-grant system. A resolution was almost unanimously carried to the effect that the map which had been prepared by the Government as explanatory of the land-grant railway proposals was "a fraud." SI'SPENSION' OK A SYDSKY HANK. The financial scare asserted itself in Sydney last Thursday, when the directors of the Australian Joint Stock Bank found it necessary to announce the closing of the doors or that institution. The circular which was issued to shareholders was in the following terms :—" With the deepest regret the directors have to inform you that the bank suspended payment temporarily on the 21st inst. This position has not been brought alxAit by losses from bad debts, but is owing to a scare created by recent bank failures, which grew into a panic, affecting all the banking institutions of the country. After the announcement of the temporary suspension of the Commercial Bank of Australia it was evident to the Hoard positors were becoming alarmed, and money began' to be withdrawn—slowly at .first. After a short interval came the announcement of the stoppage of the English, Scottish, and Australian Chartered Bank, which increased the general alarm, and the withdrawals began to assume serious proportions. Thereupon the opinion of members of the Government was sought as to. the possibility of some legislative interferenue to prevent tho withdrawal of gold by temporarily making bank notes legal tender. The Government wero fully alive to the position, and were prepared to doal with it promptly and effectively, but required, first to have the assurance of the representatives of the leading banks of the colony. A deputation of bankers that waited on the Colonial Secretary on the 18th inst. was not unanimous, and the project was therefore abandoned. During the two days following the withdrawal of gold had become so great that our local reserves were being exhausted, and, therefore, on Thursday, the 20th inst., the directors decided to consult the other banks on their position and request support. Our request was considered and declined, and your directors had no alternative ' but to close for the protection of all Concerned.. The whole of tho assets of the bank are in our possession and control. The Board is preparing a plan of reconstruction, which it is hoped will prove- acceptable to creditors and shareholders. Our London office was prepared to meet the anticipated withdrawals of British deposits up to August next. Thqse deposits had been takenaS'repayable over five years, and no serious dittir culty was anticipated with regard to them. The withdrawal uf money was oil this side, and the legislative action which was recom, mended last Thursday has now been recognised to be beneficial in tho flnanuial interests of the colony," The bank has a wonderfully wideconnectlon.havingbranehes in every town of importance in New South Wales, besides a large connection in Queensland. There are twenty-nine branches i Sydney and suburbs and 152 branches nroughout the colony in addition.. In Queensland there arc twenty branches. ; The excitement naturally engendered by the suspension has ltaw" abated; As tho result of a conference- between members o| jihe Government and representatives of banking institutions on Monday, the Go«

verninent agreed to introduce a Bill into Parliament t V nmke bank > inOWa ft first charge on bank assets and to temporarily entitle the Governor to authorise an increased circulation of the notes of any bank, and to declare; these notes legal tender. The notes issued must not exceed in amount the reserved profits of the bank, and the Act is to have force for a period of only twelve months. If at the end of that time Parliament be not in session, it shall continue in force for a month from the commencement of the then next session of Parliament and no longer. THK KKCONSTRUCTIO.N OP THE COMMERCIAL BANK. The depositors and shareholders of the Commercial Bank showed remarkable unanimity in their adoption of an amended scheme of reconstruction submitted to them on Monday by order of the Supreme Court. The scheme was practically identical with the one which was laid before them on the 6th inst., except that power was taken to pay current accounts to the extent of £IOO, and provision was made for releasing public bodies who were creditors of the bank from the necessity of taking preference shares in part payment of their claims. Mr H. G. Turner, the general manager, on rising to make a statement, was very favorably received. He explained that suggestions from the meeting of Scotch creditors that trustees who were unable under the presenteonditions to take preferential shares should have some special provision made for them in the scheme had been heartily agreed to by the directors, and, indeed, there were only two suggestions from the British depositors—who had adopted the reconstruction scheme in its entirety—that it had not been thought well to adopt. One was that deposits should date from the date of reconstruction, and be payable in regular instalments over seven years, and another was that preferential shares should be perpetually preferential as to capital. These suggestions (Hiuld not be accepted for reasons whioh were egai'ded as satisfactory, Of tho 5,1100 British creditors, 'i.tKU had assented to the reconstruct ion scheme, and it had to be borne in mind that the largest depositors were public bodies and trustees, svlio, under the present, eireumstanceH, believed that tlicy could not lake preference shares. The Meiropolilan Hoard of Works, City Corporation, Harbor Trust, and other public bodies had expressed approval of the .vcheine, and during the last three weeks no j fewer than 2,9(»K accounts had been opened. About half a million of money had been paid in, and there nosv remained held in trust about .€ , _ , 07,tt4 , -\

The infirmities inseparable from advanced years have caused Mr .James Wilson to resign the chairmanship of the Waianura School Committee, after thirty years' consecutive service in that capacity. He was Speaker of the Provincial Council of Southland in the early days of that province. Mr Pinkerton, at his meeting in the City Hall last night, said that if we had some of our old distinguished colonists sent out from Home as our Governors we would be much better served than we are under present arrangements. Loud applause followed the remark.