BANKS IN VICTORIA..

The banks of Victoria are compelled by law to furnish every quarter full particulars of their financial position, which are published in the Melbourne Government Gazette. The followmg table is mainly compiled from the accounts thus furnished for the quarter ending 30th September 1855. It represents the state of the banks 118 known there at that time. In reading the figures, it must be borne in Mind that the " paid-up capital" of these seven banks does not represent 4,698,280/. exclusively employed in bank- ing operations in Victoria : the banks, unless the Bank of Victoria be an exception all carry on business largely elsewhere,-in other Australian Colonies; in London and in the case of the Oriental Bank in India and other parts of the East. 'The five 'succeeding columns of figures apply to Vic- toria alone. With regard to the item of "reserved profits," it is not clear what # means precisely ; it is not a " reserve-Amd " as usually un- dei'stood, foe in the accounts of the Bank of Victoria there is an item of "reserve-fund" in addition to "reserved profits." The Oriental Bank has recently allowed interest on deposits,-an innovation in Victoria, not as yet generally followed by the other banks. For the last half-year, ending December, the Landon Chartered paid no dividend, having suffered large lossea during the recent commercial crisis. The profits realized by two of the banks which had possession of the field at the time of the gold-dis- coveries are enormous-20 and 30 per cent per annum. The latest dividend of the Union, declared last month, was slightly lower-at the into of 27 per cent per annum ; while the last dividend of the New South Wales Bank was at the rate of 28 per cent.

raid-up Capital. Deposits Sept. 30, 1855. Notes in cireula- tiou. Total Liabill- ties. Coln and Bullion. Total Assets.

Re- served Profits. • e,,.; -F4-•

5 5 5 5

Z E

Z

Bank of Austral- asia 900,000 1,533,561 862,381 2,233,059 989,936 3,792,001 384,248 20 1.7nlon of Australia. 020,000 1,000,641 178,881 1,298,049 834,121 1,038,462 213,896 30 New South Wales. 300,005 649,243 392,124 1,079,701

342,069

1,217,1842

90,000 10 Bank of Victoria 238,210 839,610 442,254 1,393,852 663,396 1,736,691 97,000 10 London Chartered

Bank of Austra-

lis

650,000 224,979 190,323 421,713 269,384 79E1,677 12,861 4 English, Scottish, and Australian

Chartered Bank. 500,000 74,335 24,5138 102,932 92,809 214,317 9,977 4 Oriental Bank 1,169,785 1/8,901 46,812 389,624 129,529 537,078 251,249 10

4,698.280 1,911,550 1,942,369 6,916,930 *1,122.241 9,254,948 1,057,219

The table presents it very favourable view of banking in Victoria, both in regard to its extent and its apparent security. There seems litt e danger of bank crashes like those of California in our Land of Gold : even if a very disastroua commercial crisis should arise, and the banks should suffer con- siderably, it would seem probable that the loss would be the shareholders' alone-the creditors of the banks would be safe. During the recent pressure none of the bunks seems to have been a very heavy loser. There was a pru- dent diminution of business ; while, of course, the deposits by customers considerably decreased. The following table will give an idea of' the course of the Victorian banks since December 1853. Allowance must be made for the fact that the Oriental Bank did not publish its accounts before the year 1855.

Dec. 1853. June 1854. ]ee. 1834. June 1835. Sept. 1855.

Notes in circulation .X1,919,086 . £2,292,570 . £2,191,115 .£l,978,911 . £1,912,359 Deposits 6,239,297 6,042,354 .. 5,068,790 4,606,659 .. 4,511,5.50 Total Liabilities 9,336,597 .. 9,789,238 .. 7,591,414 .. 6,911,106 .. 6,916,930 Coin and Bullion 4,435,139 .. 3,556,889 .. 2,541,741 , . 2,782,518 .. 3,122,244 Paid-up Capital 2,712,580 .. 3,159,550 .. 3,867,580 .. 3,961,010 4,698,280 Debts due to Banks 3,905,944 .. 6,222,096 .. 6,394,456 .. 5,253,563 .. 4,679,512

Between December 1853 and September 1855 the "reserved profits" in- creased from 449,247/, to 1,057,2151, ; the amount of dividend to share- holders from 238,7751. to 322,235/. From the above and other figures the _Melbourne Argus compiled statements exhibiting the facts that while in December 1853, 4,286,3791. was due to the colonists from the banks, that total sank to 696,201/. in December 1864; increasing to 1,268,8261. in September 1856-more prosperous times had begun.

A. new bank is in course of formation in the colony-" The Colonial Bank of Australaaia" : it is to be on "the Scottieh Principle " ; nominal capital, 1,000,000/.