The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1893-06-02
new PACIFIC ROUTE.
Continued from 1st Page.)

Keep Jnelr doors open. Only four
of the great banks trading in Aus
tralia were still doing business when
we left Moreton Bay, namely, the
Union of Australia, the Bank of Aus
tralasia, the Bank of New South
Wales and the City Bank of Sydney;
and these were paying paper, made
legal tender for six months and
guaranteed by the Government in
authority of special Act of Parlia-
ment. The figures of this credit
crash are stupendous. The deposits
in the suspended banks totalled
$402, 965,000, of which $274, $4,000
belonged to Australia, and $12S, 1885,
600 to Great Britain. At the time
we left no less than $1,000 current
accounts in New South Wales alone
were locked up. The misery and
Inconvenience caused by this lock-
age you can easily imagine. In the
four colonies chiefly affected the
greater part of the domestic and
trading capital of the people was
impounded in institutions which
J were not insolvent in the real sense
of the word, but were unable to find
the cash demanded by a panic
stricken host of depositors. Gold
has been deposited by hundreds of
thousands of sovereigns in safe de-
post companies and in private hid
ing places. The State savings banks
are gorged with money. So init
mately did the banks enter into
business operations in Australia,
more so probably than in any other
country in the world, that mercan-
tile operations have been paralysed
by these cumulative disasters. No
doubt our banking system has been
a seriously faulty one. The banks
are reconstructing on wiser basis.
But Australia has had terrible les
son in the economic value of faith
Distrust is monster amongst
wreckers. 1t is feeling as subtle,
as swift, and as potent as electricity.
1t is solvent so penetrating and
destructive that strong and old in
stitutions disappear under its influ-
ence. Whether or not man loves
his neighbor it is at least necessary
to have some faith in him. The
demonstrating banks are trying to
protect themselves in some degree
from this destructive distrust. Now,
it was just at this time that Mr..
Huddart's enterprise was launched.
"Well, Mr.. Ward, if times are so bad
there as you represent, how did Mr..
Huddart manage to get the line
started?"
"You see he was dealing with the
Governments of three countries.
He started naturally with Canada.
Then he dealt with the Imperial
Government and with those of
Australia. His contract with
Canada stipulated that he should
start his first ship in May,
and here she is. He had to make
the best of the Australian situation.
l have said that we left Sydney on a
Thursday. On Monday two banks
suspended in Queensland and one in
New South Wales. On Tuesday a
bank suspended in Victoria. On
Wednesday third bank suspended
in Queensland. Five banks in three
days! And all this woe piled on the
top of the previous crashes Aus
tralia is, SO to speak, strewn with the
ruins of building societies, banks,
and other commercial corporations.
1t showed the public interest in this
endeavor to open up permanent COM
munication between Australia and
Canada that it was the only thing in
the shape eff public enterprise
which could get discussed at all.
Yet at such time as have family
outlined this Canadian-Australian
service was not only discussed, but
won the support of nearly all the
leading journals of Australia and
Tasmania. can, indeed, only call
one exception to mind. It met with
some opposition, but, as the Sydney
Morning Herald remarked on the
day we left New South Wales, the
discussion only seemed to place the
proposal in a more favorable light
All the same 1 do not like to speak
as if success were absolutely assured
Sir George Dibbs and his colleagues
supported the service and proposed
, to take the opinion of Parliament
before the close of the session. Sir
Thomas McIlwraith in Queensland
personally favored the service and
up to the date of our departure nc
dissentient voice had been raised in
that Colony. But if the financial
crisis has had further and even
more disastrous developments since
May 20 it may easily be understood
that all the friendly intentions to.
wards the Canadian connection may
/ have been scattered"
"Did the crisis affect the ocean
passenger traffic?"
, ''It virtually suspended the traffic
:, One of the P. q 0. boats left sgd
ney with only Is saloon passengers
+ The following Orient liner is said tc
have had only 8 booked. From the
numerous inquiries made for passen
gers we have little doubt that
we should have sailed a full ship
were it not for the paralysing effect
of the banking crisis. We should
have had large contingent from
each of the three eastern colonies
But many who wanted to come hac
their money locked up, and others il
the generally tottering condition o.
affairs were afraid to go away. You
, see the very foundations of things
appeared to be broken up. Possibly
confidence will come back into the
peoples hearts, if not as suddenly
as it departed from them, yet more
rapidly than the pessimists predict
and the Warrimoo which will follow
us in month may have better lucl
than fell to the lot OF the pioneer