AUSTRALIAN CRISIS.

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

AUSTRALIAN CRISIS.

Bv Electric Telegraph.—Copyright, TWO MORE BANKS SUSPENDED. (press association.) Sydney, May 17. The general opinion in this city is favourable to the action of the Government in making the notes of the four banks already mentioned a legal tender for six months. The Government accounts are principally divided between the Bank of New South Wales and the City Bank, the former having the bulk. The Commercial Banking Company pays its indebtedness to Government in gold, which has been paid into the Bank of New South Wales. Steps have been taken whereby the gold collected by the reconstructing banks shall be restored to circulation. Melbourne, May 17. The City of Melbourne Bank has suspended, owing to the withdrawal of Scotch deposits. A scheme of reconstruction is being prepared. The deposits amount to L 3,750,000, including L 2,750,000 of Scotch money. The Premier says it is unlikely that the Victorian Government will make notes a legal tender. The Colonial Tourer, has arranged for

the immediate issue of 20,000 LlO debentures.

Considerable attention is being devoted, in business circles, to a proposal that Government should issue paper currency on the security of the current accounts locked up in the banks which have suspended payment. The Metropolitan Board of Works ha 3 ■a further num of L 300,000 locked up in the City of Melbourne Bank, which suspended today. This will probably result in the sewerage works being brought to a standstill. Brisbane, May 17. In view of the crlsjis the Government has decided that all mining leases in the colony shall be granted- exemption from the labour conditions without fee. The Royal Bank of Queensland has suspended payment. The balance-sheet to December 31 shows liabilities, L 1,359,000, including deposits, L 798.000. The assets include coin and bullion, L 199,000; Government securities,L29,ooo; and advances, L 1,100,000. Steps are being taken to reconstruct the bank. (special.) London, May 17. The Times, -referring to the suspension of colonial banks, states that every creditor permits himself: to be. swept along with the wave of fear, and is doing hia best to injure his own interests.