The morning call., 1894-04-15
THE AUSTRALIAN FERMENT.

The Monowai brings news of the work
ing of the ferment in Australia when Is
interesting 10 those who have watched the
course of events in that continent IL Will
be remem bered that the first patterings OF
the financial storm from which this country
is now suffering were heard in Australia IN
1890. and the storm fairly burst forth IN
the following year-two years before lis
effects were sympathetcally felt In the
United States. There, more than here. 1t
was the fruit of an unnatural condition OF
things produced by artificial causes.
One example will paint the whole scene.
There is bank in Sydney. n. s. W.. with
an authorized capital of 91.000,000. vi
this capital e200OO0. or a million dollars.
was paid in when the bank began busi-
ness. There was an active demand tor
money from sheep-OwDers, miners and con-
tractors for public Improvements. and the
bank made it known in London that 1t
would pay per cent on deposits. AS 1t
could lend the money in New South Wales
and Queensland at Z. s and 10 per cent the
operation seemed legitimate to those who
were unfamiliar with the fundamental
principles Of banking. The fatal flaw in
the scheme did not occur to the English
capitalists; they were eager to increase
their income. and they poured money into
the Australian bank, and went on pouring
it until the English deposits actually
amounted to al2.0000O0, or 100000, 600.
When the first sign of labor troubles ap
reared some of the depositors took the
alarm and called for their money. The
bank called upon its debtors. But much
of the money had been invested in I'M
provements, which could not be realized
upon at once. A desperate struggle ensued.
The end was that the bank had to ask for
time, and mean while it has called upon its
stockholders for the eS00.00o yet due on
their shares, and some of them are in DO
condition to respond. Here is an instltu-
tion which with real capital of $1,000
600 accumulated a deposit line OF sixty
times that amount and put the money out
of its reach. The result must have been
apparent to every one of ordinary FORE
sight.
The cheering features in the Australian
outlook are the increased output of prod
ucts and the vigor with which the labor
troubles are being grappled with. The
output of wool, wheat and minerals will
be larger this year than for many years
past. To give employment to the unem-
ployed the governments OF the various
colonies Gffer free transportation to the
abandoned placers and small advance
for tools and food. There, as here, there
is great deal of ore and gravel which
was passed over in the old boom days, but
which might now pay to work. Hundreds
of men are starting from Sydney to dig
gings which are matters of memory. The
governments offer a standing reward of
91000 to any one who discovers new gold
mine either in the gravel or in the rock.
When the problem of the unemployed
first became embarrassing in this State
THE CALL suggested that certain num-
Der of them should be drafted off to the
old placers, where Cinnamon were making
a comfortable living, but the seed fell on
barren ground.
The financial crisis in Australia has
reached the concluding stage in which its
visible fruits are low prices. Living is
becoming so cheap there that the cost of
supporting a family here seems preposter-
Gus in comparison. Beef and mutton are
cents a pound. A leg of lamb can be
bought for a shilling For six bits a
household at Sydney can be supplied with
three kinds of vegetables for family of
four for week. Clothing is as cheap as
in England. A hand-sewed suit of Eng
lish broadcloth made in the best fashion
sells for S25. Rents would astonsh San
Francisco landlords. A small house In the
best quarter OF Sydney rents for S5
month; seven-room house, with gar
den, also we'll situated. for $40 month.
And the opinion in real-estate circles Is
that rents have not yet touched bottom.
Even the Cinnamon are quite willing to
work at Melbourne and Sydney for one
half the wages they get here.