OPINION AS TO FAILURE.

Taranaki Herald, Volume XLII, Issue 9666, 7 April 1893, Page 2

OPINION AS TO FAILURE.

| PER PRK6B ASPOOIATION. | London, April 6.—The Victorian Agent General's Department has about £5.000 locked up in the Commercial Bank. Depositors in the Commercial Bank of Australia remain quiet, but it is stated they intend to ask the prot clion of the English courts, The London management is not blamed in connection with the suspension. The bank has been besieged, it is believed, by heavy holders of Broken Hill Droprietary shares, which fell £3. The management reassures depositors that shareholders will be the only sufferers, and that it U possible to tide over the difficulty. I Later telegrams from Melbourne have considerably modifiei the unfavorable feeling first expressed in the city. The idea of forming an Estates Company is strongly favoured by several of the bankers and brokers, who express an opinion that tho recent failure will have the effect of modifying the system under which the large amounts of deposits are received by these financial institutions, having » comparatively Rinall p.iil up capital,' in "tl.e event of the proposal for tl:« reconfit'ruction failing. The prospect of forming a new and powerful bank to take tho place of the Commercial is already can v as^o i. The Financial Times considers th i Associated Banks must bo acquitted unde* the circumstances disclosod of a^y oere liction of duty in refusing to com^ ly with tho demand for unlimited assistanci Tho Standard think < nny help rcq-iirod in reconstruction must come from Englar.d, inasmuch that there; is no financial strength in tho Colonios at present. The Scotsman declares that before the Scotch depositors will extend tlioirdeposits as proposed under the ro construction scheme, they will require to learn what prospects there are of the shareholders being able to pay tho calls on tho unpaid capital, sinco shareholders will bo cortain to find a great difficulty in realising the securities in the present demoralised stato ot" monetary affairs in the Australian colonies. Tho broker who was instructed to sell Victorian 3£ per cent stock to tho amount of £25,C0t) at any price he could get, realiaed the whole at 88£.