THE STANDARD BANK.

Otago Witness, Issue 2045, 4 May 1893, Page 16

THE STANDARD BANK.

Melbourne, April 29. The Standard Bank, which reincorporated Some time ago, have suspended payment. The failure is due to a depositor refusing to sign an agreement extending the term of his deposit and demanding his money. A scheme of reconstruction is being prepared. The liabilities amount to £1,233,000, and the advances to £1,135,000. The cash in the bank is £30,000. There are no branches in the other colonies. May 2. At a meeting of shareholders and depositors in the Standard Bank the proposal for the reconstruction of the institution was unanimously adopted. The directors, in submitting their report for the half-year ended 31st August 1892, stated :— "On the 30th May last, after a suspension of nearly six months, the bank resumed business, having completed all necessary arrangements with dissentient depositors. The Hon. Edward Langton, a former Treasurer of Victoria, has joined the board and been appointed chairman of directors. Owing to the great shrinkage in the value of securities, and the almost total impossibility of realising the same, it was deemed necessary on the 17th May last to make a further call of 10s per share on the unpaid capital of the bank in order that no uncertainty should arise in meeting obligations to depositors. Confidence, which was unhapily broken in December last, has not yet been restored, and a depression in commercial and financial affairs unexampled in the history of the colony has continued with such disastrous results that your directors have been obliged to pursue a strictly conservative policy which afforded little or no opportunity of making profits, and renders the declaration of a dividend for the sresent5 resent half-year impracticable. It is with eep regret that your directors have to make this announcement, but shareholders will appreciate the motive, their great anxiety and desire being to husband all the possible resources of the bank in order that its obligations may be faithfully met, and its future career rendered safe and prosperous. The balance of profit and loss £30,003 5s 9d, together with the balance on the contingency account £21,025 }B 7d, and the sum of £100,000 transferred

from the reserve fund, in all £151,028 10s 4d, your directors propose to carry to a contingent account, as a provision against losses by the shrinkage in the value of securities."