1905, Palmerston St, Westport, School of Mines building, Club Hotel, Grand Hotel, Bailie and Co, Colonial Bank

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1905, Palmerston St, Westport, School of Mines building, Club Hotel, Grand Hotel, Bailie and Co, Colonial Bank.

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1905, Palmerston St, Westport, School of Mines building on left, Club Hotel on right, Old original Grand Hotel, Bailie and Co.s original shop, while on the left can be seen the Colonial Bank building on the corner of Wakefield St.  This Colonial Bank (arrowed) established in Dunedin 1874, authorised capital 2 million pounds (of which) £400,000 was paid up on 200,000 shares - up to 1895 the Bank paid an average dividend of 7% - but then a fall in value of securities and a large increase in bad debts bacame serious.  On 18th Nov 1895 this bank and site was purchased by the Bank of N.Z. - it's shareholders received 11 shillings 1.75 pence for each £2 share.  By 1887 - 88 the general slump caused very heavy losses - the liquidation was wrapped in mystery - and took a long time - until 1905 when final dissolution was sought.  At the time of its closure the Honourable J. G. Ward owed the bank £87,000 through a business account of Ward Farmers Association.  Ward himself was declared bankrupt in 1897.  Colonial banks led in part to the suicide of the Hon. W. J. M. Larnach (of Dunedin, Larnach Castle's fame), he committed his death in one of the Committee rooms of Parliament Buildings 12 Oct 1898.  He had lost heavily through the Colonial Bank of which he had been a director for 21 years.  W. J. Larnach had also been a director of the Westport Coal Coy.  (regarding old cheques issued from the Colonial Bank, Westport, see rear of print 249)

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1905, Palmerston St, Westport, School of Mines building, Club Hotel, Grand Hotel, Bailie and Co, Colonial Bank by Trich Devescovi is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License