FINANCIAL TROUBLES IN AUSTRALIA.

Taranaki Herald, Volume XLII, Issue 9692, 8 May 1893, Page 2

FINANCIAL TROUBLES IN AUSTRALIA.

FAILURE OF COLONIAL BANK.

MODERN BUILDING SOCIETY

RECONSTRUCTION OP BANKS.

GOVERNMENT MONEY LOCKED UP.

SHIPMENT OP GOLD TO COLONIES. Lpkr pbbss assooiation.l Melbourne, May 6.— The shareholders of the Modern Building Society have accepted the reconstruction scheme. Tho business of the Colonial Bank of

Außtralia was confined to Victoria, Tlio bank declined tlio assistance of associated banks, nnd the liabilities are £4 394,000, including deposits and interest £3,431,000. The assets includes coin bullion, cash balance £557,000, advances £3,520,000. Deßpite the suspension of the Colonial Bunk of Amlraldsia, the business transacted at the Bunkß to day was nothing out of the common, Melbourne, May B.— The general opinion on the exclmogo is that the bank scare has ended. The suspension of the Colonial Bank of Australia has created no surprise as it was expected. Sydney, May 7.- The fiml revision of tlio rcconstiuction scheme of the Au-tra-lian Joint Stock Bank scheme provides for the issue of n-gotiablo inferibed stoak to depositors unwilling to accept preferential shares, wit'i interest at 4J per cent. This gets rid of compulsion to take preferential shares. The Colonial Treasurer states that owing; to the Banks' suspension funded stock has beeu invested at the rate of £120,000 weekly. He proposes to meet the debentures due at the end of the year out out of the funded stocks money, and does not intend to approach tlio London market for some time London, May 6. —Mr Baxton, the Under Secretary of the Colonial Office, in reply ing to a question in the House of Commons asked by Sir R. E. Webster, stated he bad no official knowledgde in connection with the New South Wales paper money. The bankers consider that the recent shipments of gold to the colonies was necessary, owing tothecoin being locked up during the reconstruction. In connection with the re-construction achonio it is considered in many quarters vita'ly important that British depositors should not be compelled to accept preference shares for the position of deposits, but should bo given the option to accept long dated negotiable deposits redeemable even in, say, 15 or 20 years, and while recognising the superior right of a majority, yet advised considerate treatment of the minority in view of futuro business rela tions. The \ ariouß Beheme3 are likely to be modified upon this principle. The Statist asserts that the English depositors regard tho money and interest as saf 5 and that it ia simply locked up. Tho general feeling is more reassuring owing t ) the bankers declining to accept tho bank holidays procl iined in Viciorii, and also the largo shipments of gold to the co'onies.