CONSOLIDATION OF" VICTORIAN BANKS.

Taranaki Herald, Volume XLIV, Issue 10199, 3 January 1895, Page 2

CONSOLIDATION OF" VICTORIAN BANKS.

A SCHEME PROPOSED BY ACCOUNTANTS. | PER PRESS ASSOCIATION] Melbourne, January 3. — A scheme has been formulated by a number of leading Melbourne accountants for the consolidating of five of the Victorian Banks on a national basis. The memorandum points out the advantages such a union would secure by proceeding upon a two fold basis. It is suggested to form two separate amalgamations, one to include the liquid assets and business, and the other to include the less convertible assets of each of these banks. In formulating the scheme the objecia kept in view were to convert the deposit receipts and preference shares of existing banks into securities less liable to depreciation and more easily realisable, to reduce the annual interest charge, but to capitalise or pay the capital value of the difference in rate of interest for a term of existing contracts between that now born, and a reduced vote, to gain an advantage from the reduction of the working expenses incidental to consolidation ; to render a speedy realisation of less convertible assets unnecessary, and to \ leave such realisation to the discretion of the I management ; when the conditions are j favourable the shareholders to pay calls , as at present, excepting with undefined limits, but without relieving them from their ultimate responsibility to pay calls to an amount equivalent to that for which they are now liable, and in case of certain events happening to obviate any necessity for at present making valuations of assets for the purpose of amalgamation by providing for any losses which might arise in connection with the realisation of assets that should ultimately fall upon those only who are at present interested in these assets.