BANKERS CONFERENCE.

Thames Star, Volume XXVI, Issue 8081, 28 June 1895, Page 2

BANKERS CONFERENCE.

IMPOKTANI" STATEMi-NT3.

(PER PIIE3S ASSOCIATION.)

Melbourne, This day

At the Bankers' Conference Mr Turner, the general manager of the Commercial BuA: of Australia, stated that banka reaped no profit from note circulation since the note tax was introduced. He believed the banks were willing to surrender this privilege, but must have a note currency of some kind.* He thought the issue of state notes would be satisfactory to the public, but disappointing t j the Government because the highest point the Victorian note issue ever reached was £1,400,000, and averaged £1/200,000, At present his bank made no profit from current account credit balances because the whole amount, was held in coin. Banks generally were adopting the view that they must enlarge their capital with the growth of their business, and the safe rule to lay down was that deposits should nt exceed double the amount of the bank's capital. He set down the amount of gold h Id by banks at about eight million sterling, which he considered was sufficient for the business of the country. He did not think that the English system of restricting business to what was called liquid assets was, suitable for the colonies. He advocated that they should do land mortgage as well as regular commercial business. All banka had made considerable advances on land, and money in many cases was practically locked up. Fully 80 per cent. • i the agricultural holdings wore mortgaged, and the great bulk for as much as they could carry.