The Financial Crisis in Australia

Hawera & Normanby Star, Volume XX, Issue 2429, 17 May 1893, Page 2

The Financial Crisis in Australia

(PER PRESS ASSOCIATION.) SYDNEY, May 16. The reenlt of tbe conference yesterday between Ministers and bankers is< a proclamation by tbe Government deola'ring notes issued by tbe Banks of New South Wales, Australasia, City of Sydney, and Union Bank legal tender lor six months, The Government had £300,000 with the Commercial Banking Company. BEISBANB, May 15. The Permanent Building Society holds deposits to the extent of £294,000, mostly on fixed terms. The scheme of reconstruction is being prepared. BRISBANE, May 16. The Federal Building, Land, and Investment Society has suspended. The paid-up capital is £85,000, and tbedepositi amount to £438,000. In view 1 of the excitement over tbe finanoial crisis Parliament will probably be called together on tbe 25th instant. LONDON, May If. The Standard states that it-is impossible for tbe Bank of England to assist the Queensland Government. Tbe Times asset ts that a prosperous future awaits the banks still standing if common sense reasserts itself, but the way creditors are yielding to unreasoning fear destroys the interests they geek to proteot. It adds that ie is incumbent on the banks to hold larger caih reserves. Intense surprise was caused here at the BUSDenßion of the Commercial Banking Company of Sydney. Tlie liability here is £800,000, which the assets fully cover. Tbe Cork depositors are applying to the oourt for protection of the assets. The suspension of tbe Queensland ' National Bank oaused but little surprise, being fully discounted. Sir G. F. Garrick does not expect muoh trouble respecting his Government's drafts. The Edinburgh deposits amount to £800,000, and those in Glasgow to £500,000. In the North Queensland Bank the Scotch deposits amounted to £90,000. MELBOUENE, May 17. j The City of Melbourne Bank has suspended owing to the withdrawal of Scotch deposits. A scheme of reooneiruotion is being prepared. The deposits amount to £3,750,000. The Premier says it is likely the Victorian Government will make notes a legal tender. , He .entertains the hope that the financial dißßßter will bear fruit by hastening federation. SYDNEY, May 17. The general opinion in the city is favorable to the aotion of the Government in making the notes of the four banks already mentioned legal tender for six months. BEISBANE, May 17. In view of the crisis the Government has deoided that all mining leases in the colony shall be granted exemption from labor conditions without fee.