Ragnar Redbeard Archive & Publisher proudly present the whole PART. 1 of "AUSTRALIAN INVESTORS REVIEW" By Arthur Desmond. FEBRUARY, 1894. Including warts and all (some corrections may occur) but we try to present everything "as is."

AUSTRALIAN INVESTORS REVIEW

Published about once a month

PART. 1      SYDNEY. FEBRUARY 1894.

INTRODUCTORY

IF “open confession is good for the soul”; so is searchlight criticism good for all Credit Corporations. No Company that is solvent and honestly conducted has any need to fear the Censor’s probe. It is the want of fearless and disinterested criticism that permits Fraud and Corruption to honeycomb every department of Trade and Commerce and Exchange.

Mushroom Banks, Loan Agencies, Building and Insurance Companies are allowed, for want of a little plain speaking, to develop into bottomless traps for the savings of the unwary. It is not necessary here to enumerate instances.

Every other man one meets has been robbed more or less. Mortgage and Discount Banks have weltered in a shameless system of organized simulation. The mirage of unearned increments has been chased to “the death” and now in days of adversity nothing is faced out and probed to the bottom. Rotten firms, past all redemption, are being bolstered up by rottener Banks and the aftermath is and must be utterly destructive of all Confidence. The culture of deception is applauded and glorified and consequently faith and integrity have become bywords to jeer at.

Every one knows in his heart that the ultimate and of all such make-believe and swindling must prove disastrous. As we write a financial reign of terror exists in the city and the markets are gorged with masses of securities that represent only imaginary values—the paper products of the ingenuity of liars and of thieves. If ever Australia is to become the Mighty Matrix of Stalwart Prosperous Millions, the poisonous jungle of political and financial fraud must be remorselessly chopped down, cleared and burnt up. In no other way can healthy development come. We must plow if we would sow—and reap.

Banking and Politics are practically inseperable, especially in Australia whose civilization is altogether founded on foreign Debt. However the politics of the Investors Review shall be entirely unconventional—probably of a sort that wont be over palatable to the rival Rings of Ravenous Ruffians who dominate our Parliaments and sell us all with a smile—or with war cries and shibboleths concocted in darkness and specially designed to deceive.

Nevertheless it is not intended to overstep the narrow bounds set up by Convict-built Libel Laws. (Generally speaking Truthtelling does not pay, but “pay or no pay”—the work must somehow be accomplished.). With these few preliminary remarks The Australian Investors Review is launched. Men with money & men without would do well to read it.

THE EDITOR.

Copies of the A. I. R. may always be obtained in any quantity from the printer 25 Rose street Darlington—or any news agent.

A W Peel’s Treasury Paper on fraudulent Australian Finance was written by Lord Jersey who ought to know how things really are. The document is remarkably hardhitting, and well written. Its facts and figures are incontrovertible whereas Dibbs reply is a laboured specimen of his rhetorical blatherskite. Our Premier is well limned by A J Wilson—“gaseous posturing statesman Dibbs with a new gaud to catch the silly multitude by.” It is somewhat unseemly for a paid servant of the State to use his office for the express purpose of defending the solvency of Mortgage Agencies to which he is indebted. He received a “Testimonial” from bankers after passing a 6 months moratorium bill thro’ a servile parliament. In addition to all that he is himself an Insolvent Speculator, who “estimates” his assets at £30,000, and liabilities—£18,000.

"AUSTRALIAN INVESTORS REVIEW" By Arthur Desmond - PART. 1 FEBRUARY 1894.

Argentinas public debt amounts to 80 millions. Australias foreign debt is £200,000,000. Argentina has paid little or no interest for five years and is highly prosperous. We pay annually £15,000,000 interest charge by the export of wool and hides and gold and grain and silver and are in a state of perpetual depression. In fact Australia is a vast farm whose owners are in the North Sea. We are only tenants and labourers. Nash, financial editor of the Telegraph, who is known as “an authority on the ability of nations to discharge their debts” solemnly asserts in his book “Fenn on the Funds”—that Australia will someday discharge the whole of her Foreign Debt which is very probable. These debts, founded on fraud and robbery will someday (no doubt) be DISCHARGED with cannon and dynamite legal tender at seven miles range.

“The greatest evil of our times is the prevailing cowardice. We do not dare to assert our opinions to bring our outward lives into harmony with our inward convictions. We believe it to be wordly policy to cling outwards to relics of former ages when at heart we are completely severed from them.”—MAX NORDAU.

Decline of deposits A. J. S. during last 12 months—one million sterling. No doubt about it this company is convalescent.

One item in all the resent balance sheets serves more than passing attention—“remittances in trausitu”. Why is it that such heavy amounts are “ou the way” just at the very time when the anditors are at work? Commercial of Aust. has 3 hundred & 34 thousand in transit—the Commercial of Sydney 345 000—the Australian Joint Stock 234 thousand, & the National of Aust 180,052… These amounts are so strikingly xcessive that some explanation ought to be forthcooming.

Chief branch Inpector of the A. J. S. Barton Lodge has disappeared off the scene. Hois resignation has been productive of much discussion. It has some very peculiar features. Only excuse offered, a well earned leave of absence on account of his health. Sir M Davies went to Colombo, for his health and Jabez S. Balfour went to Argentina, for his health and Abigail is in the gaol Hospital, ‘for his health.’ Of course, in other respects, there is no comparison between Barton Lodge and those luminaries of civilization. Next issue will probably contain an article upon Position of the A. J. S.

Great meaning often lurks in a “little Bill” Heydon M. L. C attorney General (who is closely connected with one or two reconstructed mortgage corporations) has introduced a “Reconstructed Companieo Bill.” It wants watching.

Commitments Commercial bank of Australia overwhelming. Last report and balance sheet informs us, naively enough that its earning power is somewhat limited. ‘Somewhat limited’ is excellent.

Dibbs’s famous Bingera Golconda—“a ton of diamonds in sight” to the admiration of the knownaughts, is again being lmelighted.

Rumoured—a firm of printers brokers—two shaky shipping companies and a firm of old established wool brokers ‘must go’.

“Throw the politicians to the dogs”—Premier Nelson. What! Would you poison the dogs?

N. S. W. “advances” exceed the “deposits” £10,975,697. No wonder we have default and reconstruction and the thumbscrew at work.

Sir Joseph Abbot, Speaker, considers that it is “not his duty” to prevent drunken Ministers of the Crown from insultingly addressing the hones. However he is very energetic in threatening, with pains and penalties, all Members who dare to denounce Suspenston of Payment Bills—in which he is financially interested as a large bank shareholder and land speculator.

THE POOR MANS THRIFT

When a nation has been secretly plundered by financiers it is apt to break out into open violence as in Italy. It was the shearing and skinning of the people of Sicilly by the rotten paper banks that precipitated the insurreetion. When four or five of the largest Financial Pawn offices in Rome suspended payment it was found that they held almost all the funds belongng the various savings banks scattered over the Italian Peninsula Exhorbitant taxation and ages of oppression had filled the population with bitter discontent but the loss of their little thrift in the

broken banks was the proverbial last straw. Herein there is a lesson for Australians; one that ought to be seriously pondered over. The Victorian Commissioners Savings Bank stands to lose 12s in the £ upon a deposit of £84,000 that it had in the Federal. Our own Barrack St Savings Bank is organized on somewhat similar principles. It collects over £3,000,000 a year from thrifty and industrious artizans and invests over one million in the various Joint Stock Banks, also about one million in city and suburban house and allotment mortgages. At the present time it has a deposit of over $180,000 in the A. J. S. and stands to lose 10s in the £ on £13,000 sunk in the smashed-up New Oriental. It even had investments in the notorious Melbourne Merchantile. The City Bank of Sydney at the present moment holds £130,000 belonging to said Saving Bank and pays barely 5p.c for the use of the same. However the most dangerous circumstance in connection with the Barrick street Bank is that the Trustees are almost to a man shareholders and directors of the other banks. For instance Geo Thornton M L C is one of the Directors of the City Bank and a large shareholder in others. It is clear therefore as noonday that the more money deposited with the City Bank, the larger must be his prospective dividends and vice versa. By the way their Honours Judge Stephen and Judge Windeyer are shareholders in the City bank. Judge Fosters name does not appear upon the list but there are names of gentlemen there, who may be closely connected with him by blood or marriage.

Above all things the safety of Savings Banks Funds should be carefuly looked after by the Legislature. With that end in view we suggest that the appointment of a Royal Commission to inquire into the management of the Barrack st Bank might be productive of much god. It would at least Satisfy the Public as to the Security held by the bank for the repayment of deposits—deposits that might be demanded at any moment.

THE AUSTRALIAN JOINT STOCK

Attached to this banks new-year balance sheet is an auditors report—a wonderous and gauzy and far away document. It is perhaps the most noncommittal certificate we have ever seen. It asserts for instance that the balance sheet “exhibits a true and correct view of the Companys affairs, as shown by the books of the Company”. Thus if the books are correct the bank is perfectly solvent and vice versa. The shareholders, depositors, and general public are left to discover for themselves by some occult process whether or not the books of 168 offices are reliable. The figures from the London branch are received per cable and therefore can only be affirmed at second hand. ”Coin and bullion“ has been counted by these two ubiquitious officials—which of course means ”Coin aud bullion“ at the head office in Geo Street. The returns from the 168 branches are taken on the nod of the various sweated managers, accountants and clerks. All the securities for advances on land and wool and grain and hides and tallow and town sections and politicians and directors and breweries & Good Templar Lodge & saintly pawnshops are accepted upon the affidavit of hired servants. Such superficial auditing is of no more real value to the outside world than the auditing of the defunct Merchantile or Liberator. How are we to guage the position of a bank credit when even its salaried officials are so evidently afraid to sign a document from which no double meaning could possibly be construed—under certain eventualities? The whole thing is dreamy and vague, far too much of the hearsay order, to satisfy reasonable human beings. Two men, (one a large importer of printer sundries) take an affidavit that if the banks books are not doctored like Lorimer’s, then the balance sheet is correct. One single item of this priceless balance sheet represents £8,000,000 of ”securities“. Is it possible for any two men on Gods earth to have examined and valued said ”securities“?. Wouldd an auditor even dare to investigate the security behind certain notorioris political advances, for instance? If we are not under a misapprehension both auditors are shareholders and one of them at least may even be the proud possessor of an ironclad mortgage running into five figuries. It is therefore nodoubt, a source of ineffable comfort for them to be able to affirm that every item in this involved statement ”conforms to the balances in the General Ledger“. It must also be very soothing to holders of depositreceipts & shares

Nothing herein written must be twisted into a reflection upon either the solvency of the A J S or the bewitching integrity of its officials. Every one of its suave Satraps are distinctly men of commanding genuis and more than average sanctity, morality, and honour. Mistakes will occur in the best regulated families however and Australian financialists are no less fallible than Jabez Spencer Balfor and his valuable Sattelite auditor Revd Dr Dawson Burns. This latter zealous and hallowed man off God was certainly not slothful in business and feared the Lord to the tune of £250,000 sterling, Replying to the sentiment, “The Auditors” he is reported once upon a time to have eloquently unbosomed himself thus—“What is an Auditor? He ought to be very much like a dog, very careful to listen for any suspicious sound; able to bark and perhaps even to bite if necessary. (applause). The peculiarity of his position is this, that whereas the watch dog has to watch those outside, he has to take care that those who manage the accounts do their business properly. I shall endeavour to discharge this duty faithfully, with sincere regard to the interests of this great Company’. How he performed “ his duty” go ask the thousands who put their trust in his persuasive half yearly reports and who have been rendered in consequence homeless and pennyless and broken hearted. When the difficulties come, in such cases, the auditors generally blame the director, who blames the manager, who blames the accountant, who blames Divine Povidence (or the night watchman) and—there you are.

QUEENSLAND NATIONAL BANK

Queensland is in a totally different position from New South Wales or Victoria. Its vast undeveloped resources and all its industries are mortgaged to the Banks. These industries are likely to be unusually prosperous during the next three years. Cheap labor in unlimited quantities pours in from China Japan & Polynesia and therefore there is likely to be a boom in sugar as well as one in frozen meat. Semi tropical production cannot be carried on profitably if expensive white labor has to be obtained. The secret of permanent high dividends upon investments made in Australia is a plentiful and steady supply of cheap and reliable workmen. The Kanaka only cots £6 per year whereas a white labourer would cost at least £50 per year. There is no comparison between the two from an investors point of view.

Again, the white Labor agitators have been cleverly hoodwinked and prevented by the electoral laws of the Nothern Colony from getting of the State Machine. They do not show any remarkable ability even when elected into parliament and as they are in a permanent and hopeless minority their Socialistic fads are not likely to interfere with the development of Queensland. Queenslad statesmen have been curtailing the franchise and muzzling servile agitators whereas in N S W the privileges of blatant and dangerous Demagoguery are being very unwisely extended. Investors in N S W are likely to suffer heavily during the next three years, owing to the probable advent of local Dantons and Marats and Cromwells to power On the other hand money put into the Sugar Trade will give good returns. From this point of view, Q. N. B. shares may be a good spec. The bank pays no dividend this half year, and consequently its stock may be picked-up cheap It is the policy of the Director Wreckers is keep down quotations until their secret plan of campaign is mature. Behind the bank stands the girded Power of a strong and masterful one-man Government, (with a weakling Opposition). Mc Illwraith is practically Dictator and he has not hesitated to lend the Bank over £2,000,000 of public money at low rates in its hour of need. All legislation during the next three years will be made to work in harmony with the aims of the bank Parlor. Financially the Q N B is unassailable.

Customers deposits have been cleverly annexed to the amount of about £6,000,000. All this money has been advanced on first class security not likely to be assailed by Land Taxation. The Banks balance sheet gives little or no real information and its Auditors report is vague & unsatisfactory but investors are hereby assured that the bank is safer for the next three years then certain local institutions that pay make-believe dividends out of capital,—& cook their balance sheets.

The Directors and almost all the local shareholders are prominent politicians. Consequently they are sure to take extremely good care that every possible advantage which the administration can give will be duly granted. The note issue is altogether controlled by the Colonial Treasury. In fact the Treasury and the Bank are practicaly convertible terms. A new London Loan is projected for the special profit of the politicians. It will of course be used up by the Bank and the Syndicates just as the last loan was. All government Balances also all Savings Bank Accounts are kept in the Q. N. The undoubted advantages therefore which it enjoys over all other similar institutions working Queensland must be obvious to the weakest understanding. The stock is quoted as low now as ever it is likely to be. That this bank will prove a profitable venture ultimately there is not the shadow of a doubt.

Latest quarterly averages of the A J S show up very feebly. Decrease in deposits about half a million which almost amounts to a rush for the spoil. The operation of the thumbscrew—the winding up of farmers, middlemen and pastoralists goes on merrily as shown by a contraction of advances representing £388,280. Since the last suspension of payment no chnge worth noting has been made upon the Board of Management—a rather ominous fact. The officers and crew who run their barque on the shoals of the shore in fair weather, ought to be the last men chosen to navigate her, patched and leaking through an archipelago of chartless sunken reefs; in the teeth of a boiling whirling tornado.

Then pound shares (call liability £4) are quoted for forms sake @ 40s but the transactions are few and far between. Sydney Capitalists have no liquid money but if they had it would not be probable that they would sink it in A. J. S. Stock, even if the shares were fully paid up and offered at 60 p.c. discount, as at present. Some of the withdrawals alluded to mean the transmutation of deposit receipts into reconstructed Capital; just as a clever accountant might extract an I. O. U. from his left pocket and deposit in in his right and then credit himself with the full face value with compound interest added.

THE CITY BANK OF SYDNEY

TREMENDOUSLY PROSPEROUS

The latest half yearly balance sheet of the above “bank” must inspire its beneficiarers with unusual confidence. (£10 shares are quoted at £3) In the face of the hydraulic financial pressure — 50% property depreciation — wholesale contraction of credit — forced calls from stock holders and paper money moratoriums, the City pays its proprietors a dividend of 6%. How his Judge and Bishop, and Politician owned Mont-de-Piete has succeeded, in the teeth of such a whirlwind of adversity in procreating a nett profit of £11,148 in 6 months bill discounting, is an ominous and mystic conundrum. On the 30^th June deposits “and other liabilities” amounted to £1,251,752. Now they are £1,077,524 showing a shrinkage of 174.228. During the same period a large slice of the Government Account (loan money) was placed with the bank, to succour it. Deducting this, also the Savings bank funds, the total ebb of deposits cannot possibly be less than £300,000 Withdrawals beginning of year were very heavy. “Total assets” 6 months ago were close upon @2,000,000 and now they are given as one million 800 thousand. In order even to obain that sum, “bank premises” have been written-up from £112,000 to 130,000. This is affably explained by the erection of a stately counting house containing “the most commodious banking accommodation in Australia and iron cased cellar for holding the surplus coin and bullion.” The structure is far too commodious indeed, for all the petty bill broking transacted therein. Upon going inside, the visitor is reminded of nothing so much as a steam hammer being used to drive tin-tacks. The columned tabernacle will pay interest on cost, a few years hence if all the unoccupied flats can be let to such extra profitable tenants as tote-gamblers. “Coin and bullion” has waned by £10,000 to manifest elasticity of the position, in event of another scramble—a most improbable contingency indeed, considering the    abiding    faith    reposed    in all the Sydney banks. Nothing like strong balance sheets to restor Confidence.

---

Two auditors (both of them part proprietors) publish the same old certificate of solvency as an addendum to the Directors statement and solemnly inform us with a wink that they have examined the securities on paper—compared the balances on paper—counted the Cash at the head office—examined the Returns from the 22 branches and accordingly that everything is perfectly splendid. Australian bank audits, take them in the aggregate, are merely matters of form and may be signed with perfect safety by any one. It is time however that such farcial exhibitions were abolished altogether, or else state paid officials appointed to do the work. How many hired auditors, during the present prolonged breakdown of credit have dared to honestly investigate and publish the true condition of the company that employed them? The true position never comes out until too late.

The directors intend so they say to take “the necessary steps” for procuring and Act of Parliament authorizing the new issue of stock. By the way, Members of Parliament are far too negligent & slothful when private bank Bills are before the House—suspiciously so indeed. Our Legislators have become the Registrars of every financial infamy. The first duty of a bank is to enrich its proprietors, and the first duty of honest Legislators is enrich their constituents and safeguard public property. All banks that dare to usurp State functions, by becoming vast Corporations of Landholders and Usurous Tax Gatherers, should receive scant consideration in a free parliament.

Almost all the directors have suffered severely from the prevailing debacle, as shareholders etc in second class Building Societies etc. etc. Deducting government, and Saving Bank balances ‘’fixed” deposits cannot much exceed £700,000. Total Deposits in December ‘92 were a million and a half. All deposits left are secured by liens over waning appraisements. Note circulation—Dec ’93, was 31,827: but under hothouse forcing it has reached to nearly 180,000. This represents a 2% loan from the general public.

Only for that forced loan, the shareholders might have had to calamitously auction their City suburban, & rural annexations in a falling market. According to the Gazetted Abstracts, the bank has only 160,363 coin. If we accept these figures then the note issue might possibly be met, by a raid on the till money and the “cash balances”.

Of course there is a reserve, but woful experience teaches us that theyre seldom available, in haste. Even the City of Glasgow—Overend Gurney—the Barings—the Libetator—the Banca Romana had mighty Reserve Funds—on paper. Non-metallic reserves are like unto will-o-the-wisps.

When all the facts are marshalled (also other facts that dare not be printed on pain of leg.irons) are taken into consideration the Directors deserve immortal credit for declaring a dividend, from such unpromising material. Undoubtedly these men are financial wizards of almost fabulous acumen. After such an awesome performance, they could, assuredly extract Balm of Gilead from paving stones: or enchant salt-sea foam into diamonds and gold.

On ’Change (and elsewhere) it is soulfully acknowledged, that an elastic memory, a sanguine temperament, a lively imagination and a turn for figures are splendid qualifications for energetic and ambitious men desirious of shining like morning stars in the realms of Australian Finance and Statecraft. Jabez Spencer Balfour that heroic and pious manipulator of other peoples money produced good profits from accumulations of bad debts, and Dibbs—the mighty Dibbs—the Immaculate Dibbs—the man of Destiny—Dibbs of the £3,500 Testimonial and the bankruptcy court—he who hath made of new South Wales the most prosperous land on earth, has bestowed upon us one last and crowning mercy—He! (O the overpowering & suberb splendour of his genius) has transmuted a deficit of 3 millions sterling into a surplus of £70,000. He who can turn defeat into victory is a Napoleon and Directors-politicians who can manufacture dividends under aforesaid circumstances are truly giants of superhuman cleverness. Over and over again banks and building Societies have been successfully shored up—for a period; and what men have done men can do. Undoubtedly the City Bank is sound, as sound as a bell, and under Messers Joseph & Cos necromantic generalsjip it is sure to develop (D. V.) into a really magnificient and powerful Tomb—beg pardon—Temple of Credit.

Here are a few names

among its list of Owners

Sir Saul Samuel. K.C.M.G                                         Agent General

My Lord Bishop Saumarez Smith                             Sydney

His Honor Judge Stephen                                         Supreme Court

Sir Wm Windeyer.                                                       Judge Divorce Court

Hon W J Tricket                                                           Legislative Councillor

”                    Jeremiah Rundle                                  ”                     ”

”                    James Watson                                       ”                     ”

”                    S. A. Stephen                                        ”                     ”

”                    F T Humphrey                                       ”                     ”

”                    A H Jacob                                               ”                     ”

Professor Walter Scott                                               Sydney

Edward Wrench                                                          ”

Miss Florence Samuel

David Nathan

J C Neild

Reverend Arthur Pain

Joseph Palmer. Stock broker

Louis Phillips

M Gotthelf

G J Cohen

Samuel Rofe

Reverend Dr. Kinross

Jones. of Harrison Jones & Develin

Abraham Cohen

Thomas Cowlishaw

Hon H C Dangar

Reverend C F Garnsay

T W Eady

Captain W J Hynes

W P Dunlop

Sir John Hay. deceased.

Fitzhardinge’s.—related to the judge.

Several Fairfax’s.—of the Herald

H Gorman.—of the Daily Telegraph

W H Suttor. & Mrs. S.                                                 Ingleburn

R R Terry                                                                      Ryde

Reverend Dr. J S White. L.L. D.                               Singleton

”                    Wm. Watt.                                               New Hebrides

”                    John Pemmel                                         Brunswick

”                    T J Pepper                                              Burwood

”                    Daniel Murphy                                       Willoughby

”                    C F Priddle                                             Liverpool

”                    G H Cowles                                            Bulli

”                    W. W. Gill. L.L. D.                                  Murrickville

”                    A C Geikie. D. D.                                   Bathurst

”                    Samuel Ironside                                    Hobart

James Tyson.—                                                          Millionaire

Captain John Lyons                                                   Balmain

Sir J P Abbot M. L. A.                                                 Speaker

C H Barton                                                                   Wellington

About a dozen Blaxlands

E Haviland

Numerous other Cohens and Levis

His Honour Judge Francis                                        London

S Hoffnung                                                                  ”

Wm Gotch                                                                    Yea

It is really terrible to contemplate that such high spirited citizens should only obtain a paltry 6 p. c. upon their hard earned money. It must be truly excruciating for them to contemplate crushing calls while observing their Banks assets dwindling into nothingness. However if Dibbs Paper Money Bill passes and the turbulent Democracy get defeated at the elections, times may take a turn for the better. God sent it so.

Considerable investments are made by the Bank in city and suburban property also in unredeemed Pastoral Holdings—as follows—

Name of run                     —                  District          —                  acres

Bullerawa                                               Narrabri                             255,762

Little Burrangong                                  Young                               900

Curraburrama                                        Grenfel                              9,562

Enmore                                                   Armidale                            29,805

Neila                                                        Cowra                                12,539

Wyabrry                                                   Brewarrina                        126,996

Summing up—the balance sheet is eminently satisfactory and the extended details therein set forth show that the Bank is in an exceptionally strong position and that the frankness of the directors conclusively proves, there is nothing whatever to hide.

Persons with surplus money to spare cannot do better than entrust is to the immaculate Godlike galaxy of honesty wisdom and nobility that adorn the Board of Control.

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During last year, N. S. W. note circulation increased by half a million on account of Dibb’s Act. Deposits decreased by £4,423,000. Advances were called up to the tune of £2,300,000. A steady withdrawal of deposits still goes on almost amounting to the proportion of a rush. During last quarter of 93, total withdrawals reached £1,029,151 while £399,715 worth of notes were tossed back when the Paper money Proclamation lapsed in November.

Union Bank lost over a quarter of a million, N. S. W. deposits during December quarter, & a total of £1,389,472 during the year. City bank lost£92,038 fixed deposits in December quarter.

No person who really understands the tremendous meaning behind the above deadly figures can honestly believe we have yet rounded the corner. All is in a state of unrest, suspense and brooding terror.

BANK OF NEW SOUTH WALES

Public confidence in the note Issue of the Bank of N. S. W. is decidedly abating. One quarter of a million I O Us have been returned for redemption within N S W since the Forced Currency Proclamation lapsed in Novr. Total amount of its note loan from the General Public of N S W £757  007, or double what it was this time last year. In the Sept 93 quarter the amount was inflated to £1  014  798, If Dibbs New Suspension of Gold Payments Bill passes there will be a further dangerous expansion. If any bank (privately owned) is unable at any time to meet its notes in gold, it ought to be broken-up without mercy. The forced issue of inconvertible paper by corporations of private speculators, has always preceded revolutionary upheavals, and wholesale commercial default. Withdrawals from the Victorian branches do not s acken either At end of March 93, total deposits were £3,731,o44. At the end of June they were 289,958 less—at end of of Sept they were over half a million less. Total decline in the  nine months, £802,944. N.S.W. returns also show an abnormally large decrease, side by side with and inflated note emission, and most dangerous inerease of Government balances, and Savings Bank Trust Funds. No wonder therefore that the year “has been one of great auxiety to the board” when the market value of the property declined over 50 p.e. according to the Sock Exch. Shares quoted last year at £60 ari anxiously hawked now at much less than half that sum.

Such    a    sudden   drop    in    the    stock of an old established Company must have a cause other than mere “panic”.

INVESTORS SHOULD WITHDRAW their money as terms mature from all trading banks whose reputation for solvency is in any doubt & if they earnestly wish to see a return of prosperity let them re-invest, without delay, in some reproductive enterprise that will tend to develop the tremendous natural resources of this mighty continent. An honourable manshould take some genuine part in wealth production—in the heroic work of colonization. He should be ashamed to live as a mere city per cent hunter, by allowing professional financiers and unscrupulous shylocks to use his money as an instrument of extortion, oppression & terrorism. Men have a sacred duty to perform in this world & woe to the man or men who neglect it. Sooner or later the day of wrath must come. It has came for many.

Returns show that the Comercial of Melb has lost one million and a qarter during the year. This is a sure sign of returning confidence “We have the Balance Sheets of these banks showing six millions of gold and we have the additional assurance of the Premier that it is so. I venture to express my disbelief of both statements. The whole thing is a fairy tale”.

“Schey” M P (Hansard) Without a doubt Mr. Schey is one of the ablest among our coming men. If ever a man has gone through the fiery furnace of press detraction this man has. He possess that highest of all qualities in a leader of men—courage. Truly It requires a dauntless man to attack the Janta of Bankrupts that reign over New South Wales.

John Haynes M P at Hell End —. The Contry members of Parliament who voted for the banknotes bill should be met at the outskirt of every town and shot as abettors of public robbery”.

(Evening News Feb 6). This is Anarchy Eloquent and a direct defiance of all constitutional usage. If any of our noble minded statesmen get “laid-out” during the next twelve months this Haynes ought to be lynched. Is he not inciting ignorant farmers & graziers & bushmen to murder good men and true. What has become of the anthorities that they do not take action? If such language is allowed to pass unchallenged society will go to eternal smash and chaos supervene.

Mc Millan M L A. Of McArthur & Co has gone over to New Zealand on business. The firm has a branch in Auckland that does not seem to pay. It is to be closed? How does the depression affect this firm? Is there likely to be any further complications? By the way, that Samoan native-land case cost Mc Arthur & Co very dearly. Mc Millan the Auckland manager is as unpopular over there as his brother is in Sydney. When ever he appears in public he is DESERVEDLY howled down. Howling down is too good for such callous hearted barbarians.

Mr Robert Campbell a well known and highly respected settler on the northem rivers, writes thus in the Sydney Evening News—“In face of the great depreciation of the Values of house and landed property and the prevailing depression the 4 local banks hava INCREASED the value of their landed property asset by the large amount of £26 315. They also include among their assets the advances made to their branches. Mr Coglan in the Year Book for 92 states—’This is not only contra to Law but actually misleading’ The amount thus added by the two banks referred to for the quarter is £1,519,770. These two items are too glaring to be passed over in silence“. This is a very grave charge indeed.

Signor Crispi, Premier of Italy, who is now busy granting moratoriums & suppressing revolutions is an overdrafter of the Banca Nazionale for 244 000 fs. Corruption and swindling in Italian public life is nearly as shameful and brazen as in Australia. The paper money legislation that overturned Italian credit and brought desolation into millions of homes was purchased and paid for C.O.D. by the Associated Bankers. One hundred M L As were bought for £1,000 a head like so many cattle.

RUMOURED CALL—UNION BANK.

It is whispered in Sydney that the loot of the Merchantile is invested in Irish Bank Stock—in Indian Railroad Bonds & in Consols. The mystery of more than one iron clamped box of gold sent to England before the smash ought to be probed to the bottom. Sir Mathew Davies frantically denies in the Melbourne Standard, having consigned ONE box to himself, addressed London, containing “coin & bullion”.

Commercially and financially N. S. W. is in a state of suspendeb animation. Business men and graziers are being crushed out by the hydraulic pressure of the banks and investors do not care to launch out until the bottom is nearly reached. A wild-cat endeavor is being made to keep up XXX by fictitious means. This only means prolonging the agony.

Reducing the deposit rates was frantically objected to by nearly all the banks. The secession of the Bank of Australiasia settled the matter.

In event of any revolutionary outbreak, a central store of gold would be a great temptation to the Provlsion alGovernment.

Vaillant has been crucified most effectually. A man who would murder Noble Minded Law Manufacturers is an anointed scoundrel who ought to be boiled in oil. Just thinks of the lamentation that would follow a similar atrocious attmpt upon the lives of our own Godlike M.L.As

Our English namesake discussing “the politics and finance” of the Dibbs ministry, says that their action in connection with the Bank Notes Bill “merits the wrath and contempt of honest men.” Honest men however, in Australian public life are like needles in a haysack. They are so very scarce that Sir Geo Dibbs can well afford to laugh consumedly at their wrath and contempt. If “an honest man is the noblest work of God” then the villainons politicians who blast this fair and fruitful land must have been manufactured, iu red hoot haste by the Emperor of Hell from burning marl and the cinders of the Jew whose blood money was invested (post mortem) in the field of Aceldama.

English Capitalists would do well to inquire very carefully indeed into the payable prospects of Mr Ambassador James Inglis‘s prospective Sydney Coal mining Venture. He is an Australian “legislator“. That ought to be enough.

Dalgetty & Co balance sheet can only be compared to a Parsee Tower of silence. Every now and then the onlovker beholds a gorged bird of prey rising up over the parapet, lazily flapping its wing and—that is all. Twenty pound shares are liable to a call of £15.

Old Balmain Ferry Company‘s half yearly meeting passed off with a “most cordial vote of thanks” but no dividend. The prosperous new company on the other hand made a net profit of 10½ p.c. & wrote down the value of its boats and paid 10 p.c. of promoters expenses. Twelve months competition has proved ruinous to the old Company but penny fares are making of Balmain the most populons suburb in Sydney. If the old Companys property has depreciated 70 per cent the Balmainites have profited 300 per cent. The same process is now being repeated at Manly but the Port Jackson monopoly is so weakened (in many ways) that if it does not compromise some of its shareholders will be sorry. How can two cutthroat companies pay where there is only room for one?

One of the Bank of Englands directors, it is remoured has an overdraft from that bank of nearly a quarter of a million. He is connected with a storm-struck shipping firm. This will be news in London.

Greece has done what Australia ought to do, refused to pay interest upon her fraudulently heaped up Foreign Debt. The money was borrowed and then stolen as in Australia by a band of unscrupulous political time serving ruffians who by finesse climbed into power.

The Democracy having now deposed the old usurping rings, offer’s the Foreign Creditors 6/- in the £—or nothing. The London Council of Foreign Bondholders have held a meeting and sent an ultimatum breathing fire and slaughter and threats of dire vengeance to M. Tricoupis the Greek Premier; who will probably back down when the Bondholders Ironclads anchor in Greek harbours and point their round lipped ’‘debt collectors” at Corinths or Athens. Foreign debts and foreign bondage are synonymous and all the world over the borrower is the slave of the lender.

Professor Freeman, the historian writes thus of Classical Grecians—“They longed for a day when a bonfire of promisory notes should be kindled in the market place of every city * * * they prayed for the abolition of debts and the division of the lands”. M Tricoupis is therefore a true descendant of Cleomenes, Lycurgus, Solon and other rather logical minded ancients.

Printed & published by ARTHUR DESMOND at registered office 25 Rose street Darlington.

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