City of Melbourne Bank

Southland Times, Issue 13284, 9 August 1895, Page 3

City of Melbourne Bank

[United Press Association— By Electric Telegraph—Cop yright. ] London, Aug. 7. The closing of the City of Melbourne i Bank caused no surprise here, it being regarded as the natural consequence of the decision of the committee representing the Scotch depositors to accept the amended scheme of reconstruction. Sir Evan Nepean, discussing the possibility of a further scheme of reconstruction, says he considers it undesirable to liquidate if it is possible to avoid it. He suggests that one of the large banks might absorb the institution or an assets i company be formed. His committee will not ; consider any scheme of reconstruction, unless : satisfied with the Official Receiver’s report on his investigations into the past management of the Company. Received Sth, 8.30 p.m. At a meeting of creditors of the City of Melbourne Bink yesterday a cable was read from the Melbourne directorate in reference to giving priority of security to new business. Immediately a motion was passed to the effect that it was useless to discuss the proposal and imperative to go into liquidation. Mr Loader, interviewed after- • wards, stated that he offered the committee , to induce the Melbourne shareholders to accept the scheme of rearrangement as revised I by the committee, provided new accounts were assigned priority of security ; also that the number of directors should be six, of whom the shareholders were only to elect j two, and that portion of the realised assets be put into the business of the bank. Sir E. I Nepean considers the action taken has crippled the bank for six months. i

Melbourne, Aug. 8. For the last fortnight,owing to the adverse Views held by the British creditors, there had been a steady drain on the resources of the City of Melbourne Bank. During tho past week the withdrawals amounted to as much as L 50,000 per day. As regards the application of the funds in case of liquidation the position of the Bank according to the sworn statement for the quarter ended June Ist is a first claimon the government account, L 255,000 ; the second claim, notes in circulation, L 53.000; current accounts, now mostly withdrawn, L 269,000. To meet the foregoing the amount of coin and bullion is L 319,000, while advances exceed four and a quarter millions.