Page:Banking Under Difficulties- Or Life On The Goldfields Of Victoria, New South Wales And New Zealand (1888).pdf/157

148

following paragraph appeared in a West Coast paper of July, 1865:—

“We hear that no slight excitement was caused at Rosstown by the stirring commercial news from England, and especially by the report that the Commercial Bank in Dunedin had suspended payment, and that a run had been made upon the Bank of New Zealand. The latter item created a panic, which occasioned quite a rush upon the branch of that bank at Rosstown. The establishment was besieged by depositors, who clamorously demanded cash, but in their hurry forgot to discriminate between the relative value of gold and paper, very readily accepting notes in lieu of gold. So heavy were the demands that the notes of the establishment ran out, and what might have happened no one can tell had not the New South Wales, and Union Banks come to the rescue by sending in a timely supply of their paper. Fortunately this was amply sufficient to meet all demands, and the day closed peaceably. By the next morning the panic had ceased, and in due time the bank again received its own; but we should imagine that the parties interested must have felt quite chapfallen at their ludicrous mistake.”

About the same time, I received intimation from our agent at Okarito that a rush on the Bank of New Zealand had taken place in that township. The regular coasting steamer, the Bruce, was wrecked on the 8th July, and from that time the postal communication with Hokitika was very irregular; in fact the people of Okarito were entirely dependent on private parties travelling for their correspondence, and on one of these gentlemen arriving and bringing with him a copy of one of the Hokitika papers they were made acquainted with part of the first telegram of English news. The newspaper was handed to the editor of the Westland Observer, who, about eleven o’clock on the 23rd, issued an “Extraordinary.” In this, amongst other failures in London, the name of the Oriental Bank appeared, and in the provincial part of the telegram it was reported that in Dunedin there was a heavy run on the Bank of Otago, the Bank of New Zealand, and the Union Bank. Although the “Extraordinary” was freely issued in the