Bank of South Australia (1837)
The first Bank of South Australia was founded by the South Australian Company in 1837 and became defunct in 1892. It was essentially a British venture, closely supervised by British directors, but utilizing the knowledge and advice of local managers in South Australia. History. It was created in 1837 by British investors. From 1840, it was associated with or a subsidiary of the South Australian Banking Company. From 1868, there was only one body, the Bank of South Australia. At the time of the gold rush, and the South Australia Colony was beset with, apart  from the shortage of workers, a financial crisis due to the sudden increase in the availability of gold and the lack of sufficient currency to pay for it. The manager, George Tinline, created an assay office and mint, and the conversion of some of the diggers' gold to bullion which could be used as a form of currency. A Bullion Act was passed and some 25,000 £1 coins were minted, but were not recognised as legal currency by the Bank of England. Tinline was awarded a purse of 2,000 guineas (£2,200; several millions of dollars in today's  money), and an elaborate silver salver (now in the Art Gallery of South Australia). Tinline was sacked by the bank in 1859 after severe losses caused by a customer defaulting. Foundation. Officers: Board of Directors: In 1892, under pressure of falling share values, and following collapse of banks in Victoria, the Bank of South Australia was taken over by the Union Bank of Australia.