Another Melbourne Collapse.

Hawera & Normanby Star, Volume XX, Issue 2339, 31 January 1893, Page 2

Another Melbourne Collapse.

(PER PRESS ASSOCIATION.) MELBOUENE, January 80. Tbe Federal Bank of Australia has suspended - payment, pending consultation with the shareholders. Owing to the non-payment of a dividend last October, confidence in tbe institution seemed to be withdrawn, and the present action is due to persistent withdrawals of deposits in England and the colonies and inability to make arrangements with the associated banks. The liabilities amount to about ten millions, of whioh half is due to British depositors. It is stated that tbe assets are sufficient to cover all the liabilities. Tbe capital of tbe Bank is two millions, £800,000 being subscribed, and £400,000 paid up. In regard to the Sydney branch, , the deposits have been withdrawn to such an extent lately that it is unlikely they will now amount to more tban £100,000, while tbe note issue amounts to only £4000. Tbe Bank's suspension will affect considerably more significance in Sydney than tbe suspension of tbe new Oriental Bank. Later. There is no excitement here over tbe suspension of tbe Federal Bank.

MELBOURNE, January 31. Otber banks are cashing Federal Bank notes.