68 THE COURSE OF THE CRISIS OF 1893
after the Baring crisis. During the dull years that followed,
European investors became as timid as they had previously been
bold ; and sought security above all things. Yet, even now, a
thin stream of British deposits amounting to about three millions
for the year was trickling into Victoria.
Early in 1892 the ‘peak’ of British investment for the period
under review was reached. At this time nearly 40 millions had
been obtained in Great Britain, while deposits obtained in
Australia totalled 99% millions. It is important to notice the
very great variation in overseas liability in the different institu-
tions, and the following table is of more than passing interest
in the light of the subsequent history of the banks specified.
The important fact should here be noted that the greater part
of the British deposits were for such short terms that effective
utilization of them was almost an impossibility.
TasiE VII
Percentage of total deposits obtained in Britain
For eleven banks operating in Australia.
Per cent.
Queensland National
London Chartered .
Commercial of Australis
Australian Joint Stock
New Zealand . ’
Union of Australia .
Bank of Australasia
National of Australasia
ES. &A .
New South Wales .
“ommercial of Sydney
51-8
50-0
47-0
37:0
32-0
28-5
20-0
18-0
16-0
Ri
4.94
These figures have a very material bearing upon the events of
the next few months, and confirm the impression that, while the
British investor had first called attention to the financial
position and had thereby generated the fatal suspicion that all
was far from well, it was the importunity of the Australian
depositor which hurried the crisis on to collapse.
The early months of 1892 were marked by a continuous
succession of failures in which both the land-banks and mercan-
tile firms figured. The failure of the Mercantile Land and
Finance Company in March of that year, with nearly two millions
of liabilities, marks a definite stage in the crisis. This concern
