Private Bank Issues

Lot 2972    Session 10 (7.30pm Thursday)    Private Bank Issues

Estimate $10,000
Bid at live.noble.com.au
SOLD $21,600

THE CITY OF MELBOURNE BANK LIMITED, Melbourne, one pound, dated originally 1st April 1877 and red overprinted date 19th June 1893, (dates printed), numbered No. A 341591, uncertain signatures, imprint of 'Bradbury Wilkinson & Co Engravers &c London' lower centre (Vort-Ronald, cf.Fig.134a & 134b and [p.125-6], comments p.125-6 on bank, also Tomlinson p.48-49). Many creases and folds, tear on left and two pin-holes, otherwise fine and excessively rare, being one of two known.

The year 1893 was the most disastrous year in Australia's financial history. The problems that came about that year had been building up over the previous decade. In both Sydney and especially Melbourne there had been increasingly wild speculation in land, the price of which had risen in an astronomical fashion. On the 3rd December 1891, the Metropolitan Bank of Melbourne closed its doors and went into liquidation. This set off a series of chain reactions throughout Australia. A climax was reached in Melbourne at the end of April 1893 when fourteen of the leading banks suspended payment. Only two banks remained open all this time, The Bank of Australasia and the Union Bank, two other banks remained open except for a day or two (Bank of NSW and the Royal Bank). Prior to the crises there had been twenty-eight banking and finance companies listed on the Melbourne Stock Exchange and only those banks noted above passed through the crises without suspension, Six other banks managed to sort out their affairs or were reconstructed. The remaining twenty or so were liquidated. Trade and commerce was shattered and there were many public scandals. The general public went through a long period of quite intense suffering. The City of Melbourne Bank had been founded in 1873 and it grew rapidly, taking over a couple of smaller Banks, such as the Joint Stock Bank of Victoria. It prospered and was regarded as a pillar of the Melbourne Establishment. It was suspended on 17 May 1893 and an attempt was made to reconstruct it and re-open on June 19 (notes were overprinted with this date as was this note and the note in the next lot), and it lingered on for a few weeks but it failed again, finally closing its doors on 7 August 1895. The second and final closure of the City of Melbourne Bank marked the end of an era. There are only two surviving circulation notes of this bank, this note and the one in the next lot, consequently they are of the utmost rarity.