THE RUN ON A MELBOURNE BANK.

New Zealand Herald, Volume XXVII, Issue 8273, 4 June 1890, Page 6

THE RUN ON A MELBOURNE BANK.

In consequence oi certain state merits made with regard to an investment made by the .Mel warn? Savings Bank, a rather remarkable run on that institution commenced on Tuesday, May 20th. The ran. states the Argus, was continued on Wednesday, and u was not until the clo?e of the day that the public appeared to thoroughly recognise that the scare was ground!-.--:-. As far as the head office was concerned, the withdrawals were heavier than en the previous day. 136 accounts Mere closed at this office, representing an amount of £l<>,.j';K.i, but the number of accounts kept there is close upon 30,000. The withdrawals at the head office on Tuesday reached £-j-)09 only, although the total" withdrawn throughout the branches during the day was £25,000. In con sequence oi the attitude ot the depositors the office was kept open *on * Wednesday until tive o'clock, instead of three, the usual closing time, in order to continue payments to any who cared to apply, bat there were few applications after the ordinary hour. At William-town, where the greasest rush occurred, the unfounded anxiety shown has now bet:i completely allayed. The run ceased at twelve o'clock, and at a quarter to three p.m. ;'«s manager of the bank telegraphed, " Ku-h all over : money returning freely. " Up to noon i'lOW had been withdrawn at thi- branch, but between that hour and live u clock the payments only amounted to CIM. The bank was kept open until five o'clock, and reopened in the evening from seven to nine. At eight o'clock, however, so few people were drawing money that the manager decided to put a notice in the window that he would receive deposits, and the result was that from that time more money vas paid in than was taken oat. The following w-r>- the withdrawals from the suburban branches during the day : —Fitzr-.y, £6932 ; South Melbourne. £441.'!; Richmond, £'_'*ttn ; East Colli ngwoul, t'2;7i : Port Melbourne, £1472: Williamstown, £1130, drawn, and £37 deposited : FooLscray, £1100; Hawthorn. i.'(i' 27 : Victoria Markets, £33.'!; North I'it/rov, £2s". At

Prahran there were l'"J withdrawals, re-

presenting £'221)0, about three times the usual amount. The Commissioners received daring the day offers of every assistance that might be needed from several of the city bank-. The singular sensitiveness shown by the public on this occasion is attributed in a great measure to the uneasy impression created by the recent disclosures in connection with another financial institution, and it is pointed out that great mischief i- caused by Building Societies making the iee of the term ■"savings bank.'' In England it is a misdemeanour for any in.-titut.iun to use the term except under the Savings Bank Act. The Commissioners, on Friday List, issued the followirrg memorandum : —The attendance at the various branches this evening was entirely of person--' to pay money in, and though instructions have been privately telegraphed to all managers to pay all moneys asked for, no applications were received for withdrawls. The scare has now completely died out, full confidence is restored, and new depositors are joining the bank. Notice- of withdrawal have been freely cancelled at every branch, anil the sum of several thousand pounds has been ro-dcjxjsited. Tim result of the four days' scare has been the withdrawal of £125,000 out of £2.021).011') to the credit of depositors before it began, and the closing of about 900 accounts out of I 19.009 open on Monday last. The dej<ositors have lost some hundred pounds in interest, and the Savings Bank ha* made a profit to that extent. About 6000 people were affected bv the scare, :his being the number of 'withdrawals. Several cases of hardship have come under notice, where depositors, principally women, leave through nervousness or excitement lost the whole or a portion of the money they had withdrawn! At Richmond one person, having made some small purchases, left two £10 notes site had just got from the Bank behind her, and the money has not yet been recovered. The local manager is endeavouring to recover it as-t-he ease is a very hard one. The Bank authorities desire to acknowledge the "Teat value of the assistance of tho Melbourne press in reducing the effect, of the scare to sach a comparatively small compass, and |the promptitude and energy with which this invaluable aid was rendered."