THE FINANCIAL CRISIS.

New Zealand Herald, Volume XXX, Issue 9197, 11 May 1893, Page 5

THE FINANCIAL CRISIS.

THE VICTORIA BANK FAILURE.

AMAZEMENT IN LONDON, a

PROGRESS OF THE SCHEMES FOB RE-CONSTRUCTION. Press Association.—Electric Telegraph.— London, May 9., At the meeting of depositors in the Standard Bank there were only twentyfive present, ", Several objected to take preference shares. The directors then proposed to adjourn. ' , It was stated that early in the year a circular was issued to depositors whose deposits would fall due in April, May, and June, asking them to agree to renewal, but the request met with a very unfavourable response. The Melbourne Board promised assistance, but the panic in Victoria followed, and compelled suspension.

Scottish depositors have rejected the re-construction scheme, and appointed a committee to watch the progress of events in connection with the institution. They consider the scheme unjust and one-sided.

The Times says that two millions of Scottish deposits in the banks which have suspended recently are due oa the 15th, and that it is very probable a large proportion of them will be withdrawn. The bankers are preparing to meet the contingency.

The prospect of suspended banks re« constructing on the lines published is less bright, as the insurance question is raising an important difficulty. The editor of fcha Fortnightly Review invited the Agents-General of the colonies to write an article on the stability of Australian securities, but they declined, explaining that the time was inopportune. The Bank of Victoria is petitioning the Court to protect its assets." Mr. Hugh F. Taylor, chairman of the London. Board of Directors, and Mr. Fairclough, another of the directors, express amazement at the suspension, as the bank was perfectly solvent here, and quite prepared to pay all deposits maturing in May. Melbourne, May 10. The business of the Bank of Victoria was confined to Victoria, in which colony it had 70 branches. The shareholders and depositors of the Colonial Bank of Australasia have adopted the re-construction scheme. The suspension of the Bank of Victoria has caused a disturbed feeling, especially in the country districts, in | some of which there is no other bank available. The re-construction scheme leaves it optional with depositors to accept shares. It is estimated that the suspension of the six large banks has locked up £40,100,000, of which £19,600,000 is in Victoria, £11,600,000 in England, and the rest in the other colonies. Sydney, May 10. The suspension of the Bank of Victoria caused no stir here. Banking business appears to have resumed its normal course. Adelaide, May 10. The shareholders and depositors of the National Bank of Australasia have accepted the re-construction scheme.