The morning call., 1893-04-22
LIQUIDATION IN AUSTRALIA.

The Australian Joint Stock Bank Is the
third financial institution to succumb to the
commercial crisis in Australasia. Like its
predecessors in disaster it was a large con-
Germ, with deposits of $50. 900, O0O.- Il failed
in consequence OF the withdrawal of depos-
its accustomed by the losses of its customers.
How terrible those losses nave been may be
inferred from the fact that shares in the
Melbourne Tramway Company were worth
n few months ago S45 each ana are now
worth less than 81.
These Australian banks were founded on
sound principles and no one VIII lose any
thing but the shareholders. The depositors
will get dollar for dollar, though they may
have 10 walt some time for their money. It
does not appear that any Of the banks were
wrecked by dishonest management. They
seem to lave been imprudently admin
istered and to have locked up too large a
proportion of their assets ia fixed invest
ments, such as expensive bank buildings in
every town in which they did business and
shares in industrial enterprises which looked
three years ago as though there could be no
end to their prosperity, but which now have
partially collapsed. They have fallen vic
tins to the bank expansion which is newt
able in flush Times.
Australians console themselves for their
present troubles by rejecting that they have
their railroads, their docks and their other
public improvements to show for the money
they have borrowed. and that, if the worst
comes to the worst they can sell the rail-
roads TO English investors. The way out
of the hole in which Australia lies founder
ing is rather 10 be found in her mines than
in the sale Of her Improvements. II is not
too much TO say That there is DO mine in the
world which compares in value or output
with the Broken Hills mine on the dividing
line between New South Wales and South
Australia. 1t will not last, OF course, but
while it does continue to pour out its mil
lions IL furnishes fine basis for recupera-
ton. which the steadily increasing yield OF
the coal mines fortifies.
The evolution Of the labor problem is of
interest. When the contest arose in 1891
between the Sheeepshearers' Union and the
pastoraiisis the rate of wages was is shill-
ings, say 81 50 per day. When the strike
ended 1t was found that so much property
had been abandoned as sheep pasture that
the demand for shearers had fallen off, and
the men floeked to Sydney. Melbourne and
Adelaide IN search of employment. When
the last steamer sailed these men were
a9hihS ~ ohliliHEo cdJ ~ per ukys WIN
the agreement that they would return to
their employers shillings, or 80 cents, at
the end of the week. The real rate OF wages
is thus So day. and rather than accept that
numbers of men are sleeping In the parks
and relying upon an odd job for their din
ner and upon the Government free kitchen
for their breakfast. 1t is not necessary to
remark that this volume of unemployed
labor represents a diminution in product.
aud consequently diminished capa aity to
consume. both Of which will still further
impair the ability of the people to pay
taxes.
California and Australia. which are
similar in so nf"hy respects, have pursued
dramatically opposite courses in their State
policy. we have not been blind to the
advantage which this State would derive
from discounting the future by liberal
egstem Of public improvements constructed
with borrowed money. but we have felt that
nothing would be cheap if it cost load of
! debt which it might not be convenient to
! pay. Australia has acted on the principle
| that the future must take care of itself; it
has come sooner than was expected, and
| now the colonies are in The SOUP.