THE BANK FAILURE.

Hawera & Normanby Star, Volume XX, Issue 2395, 6 April 1893, Page 2

THE BANK FAILURE.

* (PER PBESS ASSOCIATION.) MELBOURNE, April 5.

The Chairman of tbe Commercial Bank states that if the bank is forced into liquidation and its twelve millions' worth of assets forced on the market the shareholders will have to pay up the ucsalled capital and get nothing in return. He deolares that there are only two courses open — liquidation or reconstruction. Tbe first means entire loss, while to adopt tbe latter oourse will not incur tbe loss of a shilling.

There has been no ran on the local banks, but depositß in several have appreciably increased owing to the recent withdrawals from the Commercial Bank. Noteß issued by tbe latter institution are being oaebed by all the banks. The notes in circulation amount to £287,000. The Government deposits amounted to four hundred thousand pounds.

A meeting will be held to morrow to consider the reconstruction of the bank.

SYDNEY, April 5

It is understood that the Commercial Bank had £150,000 of Government funds.

Tbe Lands and Mines Departments and several minor departments transacted business through tLe bank. Financiers are of opinion that tbe bank possesses a good surplus, and that the suspension will entail no lose.

ADELAIDE, April 5

Business is inconvenienced by tbe stoppage of the bank. The local liabilities are £395,000, and assets £533,000.

SYDNEY, April 6

The New South Wales cavalry r»giment are sufferers by the failure of (he Commercial' Bank. Tbe team recently Bent Home carry drafts upon it, and will land in England penniless.

Petitions for liquidation of tbe Commercial Bank were filed in Sydney, Brisbane, and Adelaide. Mr H. N. MacLaurin succeeds Sir J. Salmon as vice-president of the executive.

MELBOURNE, April 6. There ia no reason to fear that tbe stoppage will affect the other banks. The Government, however, have been notified that if any institution is threatened the associated banks will offer similar assistance to that proffered to tbe Commercial Bank.

LONDON, April 5. The Daily News says the suspension of tbe Commercial Bank has come upon financial circles an a severe shock. At the firßt blush it may be expeoted to cause most unfavorable opinions as to tbe effect on the credit of the colony. It had been thought that under t/ie joint statement of the associated banks and the Victorian Government, pnblished a Bhort time ago, the Commercial Bank would h&ve been pulled through its difficulties.

The Westminster Gazette, commenting on tbe failure, describes it as one of the largest ot modern times.

The Scotsman considers it imperative that the Victorian Government should prove its sincerity and help the bank, bat tbe aid must be praotioal, and calculated to impress the pnblio by its effectiveness.

Other Australian banks, it is apprehended, may snflfsr by having a narrower field for tbe realisation of their resources.

The bulk of the five millione of the British deposits in the Commercial Bank are Scotch. Nearly 7000 persons in Edinburgh alone deposited £1,950,860. Mnoh of the money came from legal firms and the wealthy classes, since of late years the minimum amount that would be taken on deposit was raised to £100. Heavy payments for interest on depositß were doe here to-day.