The New Oriental Bank, which took over the assets of
the- previous institution of that name, has been compelled to go- into liquidation. The reason assigned is the fall in silver; but men engaged in Asiatic business would say that if their houses were wrecked in a cyclone. The true reasons appear to be that the depositors had grown alarmed, and were per- petually withdrawing money; that the rate of interest on deposits was inconveniently large ; and that the Bank had. large commitments in property which, though fairly good-- houses in Melbourne, for instance—could not be made fluid. It is stated, as usual, that nobody will lose; but we hardly remember the suspension of a bank without that promise being made, and in this instance the bank is "limited," and the shares are fully paid up. Banks are not shut because they can pay a guinea in the pound.
Previous page
