OIK AUSTRALIAN LETTER,

Evening Star, Issue 9153, 7 June 1893, Page 4

OIK AUSTRALIAN LETTER,

[Kuo.U OIU MKI-IiOfKNE COBKESI'ONnKST.] Wkdxesu.vy, May 31. I TllK FINANCIAL CIUSIS. Australians mav at the present moment be said to be revolving in a circle oljiasco*. Everything seems to go wrong with us, and if things do not soon take a turn for the better we will almost begin to lose hope in the future. In the depth of our financial troubles our federal instincts Mere naturally aroused, and when a conference of Premiers in Melbourne was arranged to find the way «>ut of the financial difficulty by concerted action many were sanguine enough to unfurl the (lag of federation and exclaim : •• We are on the road to union at hist ; it has always been said that adversity more than prosperity was likely to bring us'together, and this idea is soon going to assume a solid fact." But what has been the result ? Sir George Dibbs has taken a flying visit from Sydney~to Melbourne by special train to meet tlie South Australian and Victorian Premiers and consult over the financial crisis, but after a great deal of talk nothing more has been done than the passing of a useless set of resolutions—that is, so fatas the practical requirements at the present j incture are concerned. Everyone is disappointed with the outcome of Saturday's conference, for it was really thought that (something was going to be done to give us immediate relief in a financial way, besides laying the corner stone of a complete federation. The position of matters was simply this : Sir George Dibbs wanted Mr Patterson to follow the course taken by the New South Wales Government in issuing Treasury notes on bank deposit receipts, and the Victorian Premier was anxious to talk intercolonial freetrade: but as the spirit of compromise was entirely absent the three gentlemen had to satisfy themselves with suhse-ihing to the following bold memo-

raudum :■ Met i.'i ouiifeiviii-M to-day, and arrived at follow\ig resolutions. Agreed: I hat, recent events prove that laws require to be ■ •Darted with respect to bunking in all the coluuie.. an 1 that tli'- legislation should lie uniform. 'l'h :t State national banks, as popularly underM'mi.l. are not required, but that banks uf issue should be subject t<> conditions'ami restrictions -.iiiui-w hat similar to tho.se imposed on national bank-in the I nifed States of America.

These conditions should require deposit of the l.i.uds of the eo'.ouv or of coin in the Treasury as against note issu,-, which the Government should ■juarauti-e, and ais.i returns to and inspection by rh" Government of the general business of the bank-..

Ivposifs not beiring inter.-st should be a first i-harge upon th.- asset, of the bank, and the I io-\'-i,i!iiient should hau; authority to interpose in the ev.-ut of a panic it was arranged that. Sir John I'owner should draff a 101 l for submission to all the colonies dealin •; with thi.s .subject. Th.-Bank i.ssuo Act of New South Wales was ■d-o di.si-u.s-i-d, but in view of notes being already a ie-st charge on the asset- in Victoria and South \u-t-alia. the Premiers of those colonies ™ u . .-ideivd its adoption Was not required. Wiiii respect-, to the New South Wales ('urrelit 1 '.-[iii-sit Act, the Premiers of Victoria and South \ust..ilia hope that the speedy reconstruction of 'he banks ami the efforts of private enterprise wdl relieve their colonic- from the necessity to similar legislation. In the opini f the Premier of South Alls['■alia, legislation, if initiated, should relate only To ,inal!'accounts.

li w;h u-reed that siviu-- l-alik-. .-.houM be nii'lci- thi- i-tntri-->I mid ilim-ti'in ot' rite llima'ii; incut-, whii li -.'lxulil !«• iv-iiniisilili' in iv>i>t'rt uf • liyu-it-. Intor.'Mli.niiil t'rcctr.i'lo v.a- .li-eii—e.l, ami tilt' nii'liiT .'on-i'i.T.itiuii lii-tVnvi. 'l'll-.- Premier-, the ailvmitanc "t miit'.-l ■■i'ti"ii nil t!ic i',ii-t nt all tlu' I'uliink"* in the event ■•:' fi,Ki„.'!ii-ii'> ;itt'i-lin r ; eitln-r tin; whole or ;my portion ot' Au-.rr.ili i. The fact is that unless the I'remiers of 'he three i-dloiiii's could agree tu united .-'i-tiini ia securing tliu immediate unlocking • >■' money deposited with the hanks on current account to enable trade to proceed on lii • customary lines, they may as well have li'ine nothing. As a writer in the • Argus' of \ estcrday points out, tin- ueee-sity for an .iineiiilineiit of ill.: hanking law on general lines h.n Keen anticipated. "There has heii a revolution in onr banking affairs more drastic tlrin the Legislature would ever have attempted, more extraordinary ami more . oiiijilete than any linaneial revolution on the record-'. If anyone hail pointed out in Parliament that the banking position was KiHouiul, ami luul proposeil that the banks -i.ouM be ordered or should be allowed to put themselves in an impregnable position by >• inverting a portion of the deposits into permanent shares, aiel by fixing the other deposits for live, .-even, nine, and fifteen years, or by changing deposit receipts into interminable debentures, the. lion, member in question would scarcely have found a '.-.•cornier. He would not have been taken .seriously, iJut this is what has been done—under tin- prcs-mre of necessity—to a greater or lesser extent by every Victorian bank without exception, and consequently the position has been more thoroughly reformed than ever the Legislature would have attempted to change it." The Queensland Parliament was opened on Friday, when the Treasurer gave notice of four Hills dealing with the finaueial situation. Tiie first will increase the duty on bank notes from ,'! per cent., as at present, !•) lit per cent., the object being to cause :he withdrawal of the existing banknotes from circulation. On notes already issued by the banks, however, the duty will remain unaltered for two years, so that the Bill will not force on a sudden change. The -ccond Bill will authorise the Oovcrnor-in- < 'oitncil to cause to be issued-1 per cent. Treasury bills of ten years' currency to the amount of £ l,iMiit,ol)o sterling, to be vested in trustees, and only negotiable to meet payments lawfully chargeable under the Treasury N'utes Act of IS!),'!. The thirl Hill v. ill be the Treasury .Votes Hill referred to. It will authorise the issue of notes of L'l, t.'f>, or any multiple of fo, payable on demand, but not at any time to a greater extent than the amount of cash and Treasury notes then in possession of the I oivernineut, the coin held being to the amount of at least, one-third the nominal

value of the [notes issued. It is not anticipated that lunch more than liiilf a million north of notes will really he in • ireulation at any one time, the total note t'-iiie of the colony not having for a Ion.; lime much exceeded that amount, lint authority is given to issue a niillion's worth "f Treasury bills. These notes are always to be payable at Brisbane in specie on demand, unless at any time the Uovernoriu-Couuei!

issues a proclamation declaring them i„ legal tender throughout the colony for a specified term. Once a month a statement will he published in the •( la/.ette' showing the amount of notes in circulation, the amount of coin then hell its against them, and also I he amount of Treasury bills vested in trustees as security for their due payment. The fourth Hill deals with the notes of the suspended kinks. It is estimated that the amount locked up in this colony is C'Hjh,iiim). The Uill will require the authorities of every suspended hank in Queensland to fully pay its notes as if the bank had not •topued, but as such payment would have ,i prejudicial oiler t upon a bank in eour.su of reconstruction by depleting its ■_; old reserve the Kill will authorise the Colonial Treasurer to advance to the bank manage" or liquidator Treasury notes in e\- ■ hango for such retired bank notes, which will he. held by the Treasurer, charged with I per cent, per annum interest, and which will form a Crown debt against the assets of the hank. MKKCWNTII.k I'.ANK CASI-;. The surroundings of the Mercantile Hank prosecution continue to engross public attention, r,nd at the present juncture interest is centred in the decision of the grand jury, which las been ordered by tlie Pull Court to consider whether a presentment -ho dd be made to the Supreme Court or not. Public curiosity has been intensified by the departure of both Sir Matthew Davies and Mr Millidge from Melbourne. The tonuer, on the plea of illness brought about by mental worry, and supported by the certificates of two doctors, has proceeded with his wife to Colombo, and the latter to Adelaide. Should the proceedings against them, which have been suspended in such a scandalous fashion by the intervention of the Attorney-General, be. resumed, they will, however, he within easy reach of the law, and at one brought buck to see their trial to the bitter end. Public feeling has been so much aroused through the blundering of Sir Bryan O'Loghlen that should the defendants he placed in the criminal dock it is not likely that a jury will be in any way lenient to them. Most people are experiencing the effects of the financial crisis so acutely that deep resentment has taken possession of them against those who sowed the seeds of the distrust which has occasioned the down-

full of so many financial institutions. As I anticipated in ray. last letter, Mr Isaacs has severed his connection with the Ministry as Solicitor-General, but not exactly in the manner I predicted. It was naturally supposed that if the Cabinet, failed to back up Mr Isaacs in his right to make a presentment apart from the Attorney-General he would Voluntarily resign his position. But matters took such a turn that Mr Isaacs was called upon for his resignation by the Premier. Relying upon the correctness of his view that the Crimes Act gave him co-ordinate power with the Attorney-General to make a presentment to the Supreme Court, Mr Isaacs, without reference to the Cabinet, requested the law otlieers to draw up an indictment, but found that they were prohibited by the Attorney-General from carrying out his instructions. Mr Isaacs then intimated his intention' of filing a bill himself, whereupon the Premier decided to stand by the Attorney - General a3 the senior law officer of the Crown, and applied to Mr Isaacs for his resignation. The ground of Mr Patterson's action was that the course intended by Mr Isaacs would expose the ! Cabinet to ridicule, and he must bring an unseemly difference between the two legal members of the Cabinet to a close. To his peremptory intimation the Premier got a speedy and warm response from Mr Isaacs, who "concluded his letter tendering his resignation in the following terms : "As to the merits of the real and substantial question which is at the I heart of this matter I think there cannot bo any hesitation. The onlv regret I feel at laying down my office is that there will now fall upon our country a degradation which might have been averted, and which it was your unquestionable duty to avert bv all possible means in your power. Your Attorney-General arrived at a determination which you say you personally disapprove of. You know that he has refused even to j reconsider his decision. The plain words of the statute are pointed out as affording a ready remedy. You see the AttorneyGeneral, whoso decision is questioned by all, except himself and an insignificant minority, take such unheard-of action as might be calculated to frustrate the statutory remedy ; you see the Solicitor-General, a responsible Minister of the Crown, disobeyed by the functionaries of the Crown Law Department, and reduced to the necessity of adopting extraordinary means and enlisting private assistance to perform the service uf the State, and at the last moment, when that service is about to be accomplished and justice is about to be awakened, you, the Premier of the colony, though previously alleging yourself averse to interposition, do in face interpose and bring about a state of things calculated not to promote t'ne cause of justice, but to stay its hand. The people of Victoria will not fail to appreciate your efforts to maintain their honor and preserve their national fame. To them I return the office confided to my charge, an otlice I have striven with all my might to keep as perfect in its purity, dignity, and power us when entrusted to me, and an ollice which, to my sorrow, I feel under existing circumstances it is more honorable to relinquish than to hold."

Mr Isaacs has not only seceded from the Cabinet, but resigned his seat, to give his constituents an opportunity of re-electing him, which they will most assuredly do. [lt will be seen by to-day's cablegrams that lie has been returned unopposed.] Premier I'attersoii, in a recent public utterance, endeavored to treat the position taken up by Mr Isaacs with levity, pointing out that just as two hens could not be permitted to sit on one clutch of eggs it would be absurd for the Crown to speak with two voices ; but public sympathy is mainly in favor of Mr Isaacs. All the members of the Cabinet are of opinion that Sir Bryan O'Loghlen was wrong in (plashing the prosecution, and with regard to Mr Isaacs the only question that has arisen is whether in his unique cause he has been actuated from a feeling of patriotism as a desire to win personal popularity. The members of the Government view with satisfaction the appeal made to the Full Court for a grand jury, as this action will relieve them from the responsibility of a jin-tru which would have been brought about by their Attorney-General, and for which they would certainly have \ been made to stiller. sitoiKiNt; Lin - aci.ii>i:nt. A terrible accident has happened to Madame l)e Alba, wife of Signer De Alba, who cfline to Melbourne as a member of the Simonseu Opera Company some time ago. Husband and wife on Saturday evening took the lift to their photographic studio in Nicholson's Chambers, at the corner of Swausto;: and Collins streets, and when they had reached a point midway between two of the upper floors the lift suddenly stopped, and could not be made to go either up or down. When it was found that the lift would not shift, a ladder was called for, so that Signor an 1 Madame l)e Alba might with its aid descend to the floor, which was lift below. The open shaft rendered this easily possible, and no difficulty or danger was expected, as the same method of escape had been availed of before without mishap. Signor I)e Alba led the way, and accomplished the descent safely, but when his wife sought to do so the lift started upwards, either because it was lightened of portion of its load or because the lift boy pulled the rope. The few feet between the point at which the lift was standing and the cross-beam of the I next floor were traversed in a few seconds, and before the lift could be stopped Madame l)e Alba's head was crushed between the [ floor of the lift and the beam. The boy stopped the lift very quickly, and thus prevented the complete crushing' of the unfortunate lady's head ; but when she was extricated it was apparent that her injuries were of the most frightful character. No time was lost in conveying her to the private hospital of Mr O'Hara, in Collins street, and having her case put under the charge of Mr O'Hara and Or I'. Moloney, who were at first afraid thai her brain was injured. An examination revealed that their fears were groundless, and as the evening pissed away, and tiie patient still improved, the surgeons were encouraged to hope that they would be able to save her life. But while there is a chance of this being accomplished it must not be deemed a good one. The pressure of the lift and of the cross-beam was on the chin and the apex of the head respectively, and the result was that the upper and lower jaws were badly fractured, the face was smashed, the teeth were driven down the throat, and the scalp was taken off behind. Mr O'Hara wired all the bones, and, with the assistance of photographs of the lady, replaced the Hesli of the face in its normal position. The result so far is satisfactory, and should Madame De Alba recover it is thought that her disfigurement will not be so great as might have been expected from the nature of her injuries. A MAN KILLS HIS SON. Wileannia was the scene of a terrible tragedy last Wednesday night, when a man named Thomas Nolan, aged eighty years, stabbed and killed his son Charles, aged thirty-five. The son was married, and, with his wife, children, and father, lived in a hut on the outskirts of the town. About ton o'clock the old man was lying in his bunk, and the son was sitting by the fire nursing his little boy. In the course of conversation a quarrel arose between the old man and his son, and the father jumped out of the bunk, drew a sheath knife, and stabbed his son in the left breast. The young man staggered outside, crying " Murder," but fell after going a few yards. His wife sent for the police, who arrested the old man, who told the officers that he had stabbed his son. Young Nolan was removed to the hospital, where he died a few minutes after admission, the knife having fairly penetrated the heart.