COLLAPSE OF THE MELBOURNE BOOM.

Otago Witness, Issue 1932, 30 November 1888, Page 9 (Supplement)

COLLAPSE OF THE MELBOURNE BOOM.

(Fkom Our Own Correspondent.) Melboukne, November 20.

r^f 6 bSen ■ It is too soon yet to £11 remains to mean time one can only f rol ,besy. of affairs, which as iport the JjtnaM^. exchange speculation S^^r^iti«»a in this A ?°5f DD g ap a e C rs which is very significant of nornmgs papers^ g> Mr James ;be present state o litician , and a tfirams, the ceieor a * gwimJ , rSX land boom to a very large degree, ivn *f ,S an action against Mr David Munro ja s started an aotiuu^fo recover £15,uuu on <* insieht into the workCTllfteoZS, which are de"dedly instructive. The bill was drawn by Sams on Mr Munro, on July 7 last, at S«r months. It was accepted by Mr Munro, Lavable at the National Bank of Australasia. Kas not paid, and Mr Mirams brought an action the amount. An apphcaSon to been made to Mr Justice Kerferd m Ohambeis on behalf of Mr Munro for leave to defend the action. This application is andef the Instruments and Securities Statute made^ parte, and if leave is not given to defend a^plaiAtiff is entitled to sign judgment In support of the application for Save to defender Munro made the followno- affidavit, omitting the formal parts :- 1 In ?he month of July last I entered into negotiations with the plaintift for the sale of fome 1512 acres of land in the parish of iSroke, in the County of Bourke, which he stated to me he wished to purchase on behalf of himself and others, with the view o£ towards re-selling to a company and he made it a condition of the purchase that as he could not obtain a commission out of the persons who were associated with him he would only buy if I would give him £15 000 for himself, or about £10 per acre less > than the price disclosed in the contract I agreed to sSI him the land at £151,200 and interest, and to make him such a payment and to give Sm my acceptance for the £15,000, provided that the acceptance should be renewed from time to time until the sum of £31,935, being Tb amount of the first three promissory notes to be given by him in part paymen of the purchase money, were paid, me first promissory note for £10,000 given by the plamtiff in part payment of the purchas? money fell due the 10th November inst, and was dishonoured on its due date, but has subsequently been paid, but nc further part of the said purchase money has been paid either as cash deposit or otherwise, A weekbefore the acceptance sued on became due I saw the plaintiff, and requested him in pursuance of out said a— ttoj« the said acceptance, but he stated that h was not able to do so, and I believe that th € Tame was then in the hands of his banker I believe that I have a good defence to this action on the merits, and this application foi leave to defend is made Una fide and not loi the purpose of delay." The leave to defend the action was granted.

A very unwelcome, though it may b salutary, change has come over the aspect c monetary affairs. The "boom" has bursi The best description of the situation is to b gathered from the following remarks in th money column of the Argus :— The local monetary position has not improve* The bauks have adopted a very cau turns attitude and are discriminating closely between ordinal mercantile paper and bills based on transactiot in land. As a consequence, some of thelan companies and syndicates are finding _ ib difficu to finance, and have been compelled to offer c: treme rates for discounts. The existing stru ceocy affects* chiefly those who are engage Tlpenlv in real property business, and in t

numerous companies Drouguu uu» ui». Uf , *~~ year The indications point to a continuance cv , a rather tight money market for some time to come, at least until the large liabdities assumed by the public have been pretty well liquidated. The consequences are on the surface in the meantime, but if one were to believe half the rumours which are going a,bout the con- ' elusion would be that Melbourne is to go ■ I through a rude and sharp awakening very 1 shortly. The change has come about very suddenly ; and as in the case of all monetary I crises, the responsibility for it is thrown II upon " the banks," who are accused of being ir too precipitate. But whatever the reason, y there is no doubt whatever about the result a In general commerce things are not affected Q " All the markets are brisk, and there is i U various concern? £ whth^n^ 8 ' and coming due, that they hive 1? " are hpon the market to obtain thp » r ° e stocks which their bankers n h o c , necess ary cash, The Mercantile FimTce Cnl BGX advancQ ' stance, wWo h paid s re^SfV^ in " a few months ago, and S«f a . dlvj dend rose as high a ? £ic nn, • ares in wh ich about£6,and ;e; ci y L av ;1 D ° W S™** at sustained by invSo£?J?J° SSes have been company wtefi ?'«*• It is a end. Except TSeordin, 01116 t0 a Sudden a which Mr George M<L ean % "^ ***«* Jmted in his S p ee fh at one of f^ J S nedin ' banquets recently. He °M exhlbiti °* during the craze was buyin?]!/ 76 ? man tarn it, but to sell at a Sflf to th' nOt to re " who came along; but tw P ° man ■te weight is tosipportaSle itt' 5 - hand^ tansaotions to ufe c" ent T^™ 3 M P ort 'as come over the gpfaft sal st^? ge that onversation. Av^J- au stree t corner