THE AUSTRALIAN BANKS.

New Zealand Mail, Issue 1107, 19 May 1893, Page 33

THE AUSTRALIAN BANKS.

; ■„. London, May 10. The" Standard says, the Australian Joint Stock Bank has.-modified its reconstruction scheme on more equitable lines. A council of foreign bondholders, for the protection of the interests of depositors, is being formed in Scotland. The suspension of the Bank of Victoria has had a bad effect in the city, especially in the face of the reassuring nature of the cable messages which have been published during the last few days. The suspension has also had a bad effect in financial circles in New York. London, May 11. The shareholders of the Australian Joint Stock Bank have unanimously approved the reconstruction scheme. A meeting consisting of ! 3(H) deDoflityja, js

now being held to discuss the question

At the shareholders' meeting an amendment was moved hostile to the scheme, declaring that the meeting should adjourn pending the receipt of a special independent audit of the affairs of the bank. Mr Blair, writer to the Signet, opposed the scheme, and urged liquidation. He suggested that the Court should seize the assets in England. Mr Williamson combated the arguments of Mr Blair. Only 12 voted for the amendment, and the scheme was adopted by an enormous majority. The directors of the English, Scottish and Australian Chartered Bank and the London Chartered Bank are conferring over a scheme for amalgamation, ft is expected that they will agree upon terms to-day. The Bank of Australasia and the Union Bank of Australia are each shipping L 250,000 in sovereigns to Australia tomorrow. The Hon J. 11. Dickson, who is a director of several of the leading banking and financial institutions in Queensland, slid, in the course of an interview, that there was not the slightest foundation for the rumours with regard to the condition of the Queensland National Bank. During the last six years that institution had been severing its connection with the building societies, and it was now free from all embarrassing alliances. It is expected that the deposit insurance companies will jointly support the schemes of reconstruction. London, May 12. The directors of the English, Scottish and London Chartered Bank are framing a plan of reconstruction which will enable two banks to easily amalgamate after reopening. This is delaying the promulgation of a scheme. London, May 13. At a meeting of Scotch depositors in the Australian Joint Stock Bank the reconstruction scheme was approved by 81 to 13. The Australian banks have raised the rate of exchange | per cent. The Mortgage Insurance Corporation offers to insure deposit receipts, but prefars that the shares of the reconstructed banks should be on the former terms, unless a higher rate of interest is paid. Four New South Wales banks will shortly join in urging the Government to get aside land revenue to provide interest on the sinking fund debt. The Daily News urges that independent experts in England should audit the accounts' of the banks which have recently suspended payment, and also of the Colonial Governments. The amended scheme for the reconstruction of the English, Scottish and Australian Chartered Bank has been approved. The shareholders and the depositors of the National Bank of Australasia will, on Thursday next, consider the scheme for the reconstruction of that institution. Melbourne, May 11. The Melbourne Metropolitan Board of Works is placed in a serious position through the recent suspensions. Between the Commercial Bank and the Bank of Victoria the board has L 600,000 of the last loan tied up. A firm of solicitors has received instructions, on behalf of the Scotch depositors, to oppose the reconstruction of the Standard Bank. Melbourne, May 12. Meetings of shareholders and depositors in the Bank of Victoria have adopted a scheme of reconstruction on lines similar to those proposed by the other banks. Sydney, May 16. The result of the conference yesterday between the Ministers and the bankers is a proclamation by the Government declaring the notes issued by the Banks of New South Wales, Australasia, City of Sydney, and the Union Bank a legal tender for six months. The Government had L 300,000 with the Commercial Banking Company. The scheme for the reconstruction of the Commercial Banking Company of Sydney provides for selling the property and assets of the old bank to the new institution for 80,000 shares at L 25 each— L 48,000 paid up to Ll2los, the remainder to be subscribed over a period of three years. Creditors wjth current accounts are to accept 10 per cent of the principal now owing within a month of the registration of the new bank, 5 percent within the next six months, and then 5 per cent every quarter, interest to be paid at the rate of 3| per cent. The directors will be empowered to' pay drafts in full, and the creditors may exchange deposit receipts for debentures paying inteiest at 4 per cent. Brisbane, May 16. The Permanent Building Socie-y holds deposits to the extent of 1204,000, mostly on fixed terms. A scheme of reconstruction is being prepared. London, May 15. The Queensland National Bank is applying to the Court for voluntary liquidation. The Exchange is excited by the suspension, for which it was not prepared, and surprise is expressed that the Whitsuntide term was allowed to approach so near before the intentions of the bank were intimated. London, May 16. The Standard states that it is impossible for the Bank of England to assist the Queensland Government. The Times

asserts that a prosperous future awaits the banks still standing if common sense reasserts itself, but that the way the creditors are yielding to unreasoning fear destroys the interests they seek to protect. It adds that it is incumbent on the banks to hold larger cash reserves. Intense surprise was caused here by the suspension of the Commercial Banking Company of Sydney, The liability herejs LBOO.OOO, which assets fully cover. The Cork depositors are applying to the Court for the protection of the assets. The Standard says that city financiers feel genuine regret at the temporary stoppage of the Commercial Banking Company of Sydney, and declares that the London office was conducted most admirably. The suspension of the Queensland National Bank caused but little surprise, and had been fully discounted. Sir J. F. Garrick does not expect much trouble respecting his Government's drafts. The Edinburgh deposits amount to LBOO,OOO, and those in Glasgow to L 500,000. In the North Bank the Scotch deposits amounted to L 90,000. (special.) London, May 13. The manager of the Standard Bank had a conference with the depositors in Edinburgh, and as a result they have agreed to renew their deposits in the institution for seven year?. (special.) Brisbane, May 16. The Federal Building, Land and Investment Society has suspended. The paid up capital is L 85,000 ; the deposits amount to L 43,800. (PRESS ASSOCIATION.) Brisbane, May 16.

In view of the excitement over the financial crisis, Parliament will probably be called together on the 25th inst.