Australian Consolidated Banks.

Opunake Times, Volume II, Issue 57, 18 January 1895, Page 2

Australian Consolidated Banks.

Melbourne, January 16.

The Age, in commenting on the bank consoldatiou scheme, says the time is ripe for some action to provide against the possibility of difficulties arising when the deposit receipts issued by the reconstructed banks begin to mature. The State assistance should be claimed to restore general confidence in the future, for without its intervention little improvement is possible. It says that this can h irdly be regarded as a novel expedient, as instances might be mentioned where such interference not only is permissable, but has been recognised as an element of strength, ' and could be relied upon in a case of urgent necessity.. The Age continues: “ We are confronted with the fact that between the years of 1897 and 1901 the Australian reconstructed banks will have to meet demands for the payment of deposit receipts to the extent of £44,000,000, and this is a certainty which no amount of specioue argument can get wide of. It is also equally certain that the colonies will not likely be prepared to meet such enormous demands when they occur.. If the new deposits could be expected to replace the withdrawl of the old, then there would be no difficulty.” The journal concludes by pointing out that the comments of the London financial organs show clearly that such a happy solution is likely to occur. They would, however, have two or three years’ breathing time, and surely something would suggest itself in the meantime which would provide against troubles in the future.