REMINISCENCES OF THE "BOOM."

HOW VICTORIAN BANKS WERE RUN.
( Continued,)

In the course of the examination of the Hon. Thomas Loader (chairman of the directors of the City of Melbourne Bank) the following interesting facts were dis closed :

Now, as to the account of Fergusson and Mitchell, Limited. I see in the overdraft book for June, 1891, the amount was £82,261 ?—I suppose that £82,000 would go to the credit of one of the other accounts. In June, 1893, it had gone up-, to £96,821. Automatic ?—A little. And at the final suspension of the bank in August, 1895, it comes to £121,658. So that it went np from May, 1891, to 1895 four years—about £40,000. That is pretty hot for an automaton, is it not? Can you suggest that at any time during the upward tendency of the account the screw was put on ’ —The general manager was often told to prevent it increasing, but the screw was not pat on in the sense of taking any pro ceedings. Did you think about the time of recon struction, when it had gone into £96,000, did you think it good! Were you uneasy about it ?—Yes.
Assuming the appropriations you men tioned in the report were sufficient, how do you justify allowing the account to go from £91,000 to £121,0013, which you tell us it reached in August, 1893? Because the business required more money, I suppose. Take the central city property. That was the account for which Fergusson, with others, was responsible?— Yes Did you know who were the persons in that?— No.
Did you know Longmuir was interested in it ?— No.
