THE AUSTRALIAN BANKS.

New Zealand Mail, Issue 1106, 12 May 1893, Page 22

THE AUSTRALIAN BANKS.

By Electric Telegraph—Copyright. (press association.) London, May 9. The Times says that L 2,000,000 of the Scotch deposits in the banks which have suspended recently are due on the 15th inst, and it is very probable that a large proportion of them will be withdrawn. The banks are preparing to meet the contingency. The prospect of the suspended banks reconstructing oa the lines published is less bright, as the insurance question is raising an important difficulty. At the meeting of depositors in the Standard Bank there were only 25 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 the depositors whose deposits would fall due in April, May, and June, asking them to agree to renewal, but the request met with very unfavourable responses. The Melbourne Board promised assistance, but the panic in Victoria followed, and compelled the suspension. The Scotch depositors rejected the reconstruction scheme, and appointed a committee to watch tbe progress of events in connection with the institution. They consider the scheme unjust and onesided.

The Bank of Victoria is petitioning the Court to protect its assets. Mr Hugh L. 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 was quite prepared to pay all the deposits maturing in May. * . The editor of the Fortnightly Review invited the Agents-General for the colonies to write an article on the stability of Australian securities, but they declined, explaining that the time was inopportune. It is expected that the bank rate of discount will be raised to 4 per cent. Colonial stocks, with the exception of those of New Zealand, have fallen | per cent.

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 reconstruction 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 reconstruction scheme leaves it optional with the depositors to accept shares. It is estimated that the suspension of the six large banks has locked ud 40,100,000 of money, of which 19,600,000 is in Victoria, 11,600,000 in England, and the rest in the other colonies. Adelaide, May 10. The shareholders and depositors of the National Bank of Australasia have accepted the reconstruction scheme. Sydney, May 10. The suspension of the Bank of Victoria caused no stir here. Banking business appears to have resumed its normal course.