The Chronicles of Early Melbourne/Volume 1/Chapter 24
CHAPTER
XXIV.
BANKING A N D PAWNBROKING.
SYNOPSIS
—Circulating Medium—" Paper" Money at a Discount. —Gold only Legal Tender.—Batman as a Money Lender. — Cent, per Cent.—Mr. W. F. A. Pucker's Agency.—Mr. Isaac Hind.—Mr. Skene Craig.—Bank op Australasia—Mr. D. C. McArthur, its First Manager.—Mr. McArthur's Mastiffs.—" The Dogs of War."—Mr. McArthur's Early Domestic Troubles. —'The Bank's Staff in 1840. — Discount and Interest.—Mr. McArthur's Superannuation and Death.—Union Bank of Australia—Mr. William Highett, First Manager.—His Objection to McArthur's Bull-Dogs— Attempted Burglary.—The Bank's Staff in 1840.—Mr. Highett as M.L.C.—His Retirement and Death.—Mr. T. E. Boyd, his Successor.—Mr. William Fletcher Succeeds to the Management. —The Bank's Progress in Forty Years. —The Port Phillip Bank.—Its Projectors.—The First Directory.—Mr. John Gardiner, Managing Director.—His Mission to London.—Mr. G. D. Mercer, his Successor.—The Bank's Staff in 1840. —The Bank's Collapse in 1842—Its Final Dividend in 183/—Mr. J. P. Fawkner's Attempt at Bank Making. —The Tradesmen's Bank a Failure. —The Bank of New South Wales. —Mr. C. S. Vallack, First Manager. —The Bank of Victoria.—Dr. Thomas Black, its Originator.—Its Early Career and Future Prosperity—Mr. Matheson, its First and Only Manager. — The Colonial Bank.—The First Savings Bank.—Its First Trustees and Officers.—Mr. fames Smith, its First Manager.—His Retirement and Death.—" Our Uncles and our Aunts."—The Origin of Pawnbroking. — The " Three Ball" Symbol.— Mrs. Anne Willis, the First Pawnbroker. — Old Melbourne Loyalty.—King William IV.—Anniversary of his Birthday. — Queen Victoria's Marriage.—Addtess of Congratulation.—Birth of the Prince of Wales.—Address to the Queen.—A Prayer for the Queen.—A Birth-night Ball.
BpHE origin of our present extensive and elaborate system of banking, reveals some curious and laughable incidents. Atfirstthere was no regular monetary system—no recognised circulating medium, unless the circulation of "orders" could be termed one. Payments were made by orders drayvn upon Launceston, Hobart T o w n , or Sydney ; and the only m o d e by which ready cash could be obtained, was by V a n Diemen's Land and N e w South Wales commercial agencies in Melbourne. T h e cashing of settlers' paper became a source of considerable profit, as a heavy discount was charged for the pecuniary accommodation. T h e Government refused to accept bills, orders, or cheques in payment for land purchases—nothing but gold or other legal tender d o w n on the nail. Batman, who, like Fayvkner, could turn his hand to many things, added to his storekeeping the offshoot of " broker and money-lender;" and well he knew h o w to make his borrowing constituents pay through the nose, or rather the pocket, for obligations rendered. His terms were, for a ,£20 loan for six months, a repayment of ,£30, or 100 per cent, per a n n u m — t o which must be added his store profits upon one-half the loan; for the custom obtained with him that the advance made was to be " half cash and half goods." Mr. W . F. A. Rucker, much to Batman's disgust, soon underbid him, for he offered to do loans, half goods and half cash, at the rate of 30 per cent, per annum. This m o d e of freetrading annoyed Batman, w h o vowed vengeance on Rucker, and Batman, as a first instalment of his ire, run up at the next Government land sale a certain half-acre allotment in Collins Street which Rucker wished to secure on moderate terms to ,£90, afigurethen much above the average. During this state ofmatters the proprietary ofthe Derwent Bank at Hobart T o w n decided upon opening an agency in Melbourne, and Mr. Rucker was local agent. O n the 8th February, 1838, the agency commenced business at the corner of Queen and Collins Streets (where the Union Bank was afterwards erected), and subsequently transferred to a kind of sentry-box or stall in Little Flinders Street, near the corner of Market Street, and close to a new store put up by Rucker. It m a y be worth noting that the Derwent Bank Agency cashier was the well-known octogenarian, Mr. Isaac Hind, w h o died about 1880, after officiating for nearly forty years as weigh-master at the Flemington race meets, and w h o was well-known to every race-goer. Mr. Rucker's functions were confined to the cashing of orders, and the issue of Denvent Bank notes. In the same way M r . Skene Craig, another of the original merchants, acted as agent for the Commercial Bank of Neyv South Wales; but the growing importance of the settlement, and the impediments offered to commercial and trading enterprise, to the community in general, and to the Government, through not having a local bank of issue and deposit, could not fail to impress themselves upon the administrator of the Government; and in consequence of his representations to headquarters, the Governor (Sir Richard Bourke) requested the Bank of Australasia to open a branch of that corporation in Melbourne. T h e Governor's offer to convey the bank officials, and their banking paraphernalia, in a Government vessel to Melbourne, and to alfoyv the bank a military sentry until protective arrangements could be made, was accepted, and Mr. David Charteris McArthur, manager of the neyv bank, and hisfinancialbelongings arrived in the revenue cutter " Ranger," after a protracted voyage of six weeks. In those remote times anything like an eligible banking house was not to be found. Mr. McArthur accordingly yvas glad to take up his quarters in a brick two-roomed cottage, 24 feet by 16 feet, at the north side of Little Collins Street, where Messrs. Henty and Co.'s warehouse is now. O f the tyvo rooms one was the "bank," whilst the other constituted the "bank parlor," or "crib." Reanvard was a skillion of two compartments, and here the manager had to make his residence. T h e modern bank manager, w h o retires after the day's toil is over from theflurryof exchanges, discounts, loans or renewals, to the penetralia of his luxurious villa in one of the fashionable suburbs, has a bed of roses, indeed, compared yvith the laughable vicissitudes to which an unconquerable necessity subjected his predecessors. There are some reminiscences connected with Mr. McArthur's Little Collins Street sojourn which, thought over from the standpoint of to-day, appear simply incredible. O p e n robbery by day was not apprehended, but a night " sticking-up " was not beyond the range of probability. T h e cottage-bank stood several feet in from the street line, and was surrounded by a substantial paling fence, the top of which bristled with iron spikes. T w o kennels were erected in the back yard, yvhere, housed by day, was a pair of huge mastiffs. A s night approached these " dogs of war" were let loose, and had free selection over the premises. A soldier sentinel also kept watch and ward over the bank's treasures. Firearms had been brought from Sydney, but they were not wanted, for the precautions taken so impressed the thieving fraternity, that it came to pass that neither dogs, manager, nor bank, were ever poisoned, murdered or pillaged. But though the bank was not troubled by bushrangers and burglars, its good-natured manager was not free from troubles of an irritating kind. That important and necessary domestic institution known to civilization as the general servant, was then in an undeveloped state, and no yvant of bashfulness prevented them from frequently insisting upon m u c h more than their " rights." S o m e of the soldiers forming the military detachment stationed in Melbourne had their wives with them, and Mr. McArthur secured the services of one of the " R e d Coat Sisterhood." O n e morning this lady " help " took " furlough;" she struck work, and declared she was " o n for a holiday," or rather " a booze," with her husband, w h o had a week's leave of absence. T h e manager's remonstrances yvere unavailing; the fair one went on her "outing," and the manager, like Lord Ullin, yvas "left lamenting." T h e bank yvas unbrushed, "the skillion" unswept, the meals uncooked, the bed undressed, the yard uncleansed, and, to the mind methodical, such a state of confusion was a misery. Porters in buttons, or servants in livery, were banking accessaries then unknown. T h e whole managerial staff consisted of Mr. McArthur and an old accountant named Dunbar, a kind of arithmetical fossil, w h o had grown grey in ready-reckoning and column-totting. This veteran had no soul for anything beyond his quill driving, and when asked by his chief to give him a " hand yvith the broom," he screwed up his ancient nose and declined. T h e manager had, therefore, to let things " slide " or help himself, which he did, until the soldier's wife worked off her spree, and returned to duty. T h e bank opened for business on the 28th August, 1838, and prospered for a couple of years, when the back street make-shift was vacated for premises erected specially for the purpose, in Collins Street, next to where the present bank stands. In 1840, the staff consisted of:—Local Directors, Messrs. D. C. McArthur, James Simpson, and W , H . Yaldwyn ; Manager, M r . D. C McArthur; Accountant, Mr. John Dunbar; Sub-Accountant, Mr. Hugh Walker; Teller, Mr. C. L. Hussey; Clerks, Messrs. George Porter, James Bogle, and R. S. Maitland. T h e discount days were Mondays and Thursdays, and the terms of business were :— Interest allowed.—On current accounts, at the rate of 4 ^ per cent, on the daily balance; on deposit receipts, subject to ten days' notice previous to withdrawal, 5 per cent, per annum ; on deposit receipts, subject to three months' notice, 7 per cent, per annum. Interest charged.—On bills not exceeding three months' currency, 10 per cent, per a n n u m ; on bills exceeding three months, 12 per cent, per a n n u m ; on past due bills and overdrawn accounts, 12 per cent. per annum. Towards the close of 1844, the banks ceased to alloyv interest on deposits, and in December, 1846, they resolved to discontinue the payment of cheques payable to "order." All such documentsJhenceforth were m a d e payable to " bearer." This was done as a protection against fraud. The premises of the bank were subsequently enlarged to meet the immense rush of business biought on by the gold discoveries in 1851. In its transition stages from the cottage to the palace, the bank underwent four transmigrations, the last being the present splendid edifice at the corner of Queen and Collins Streets, whereon for many years had stood a large Wesleyan chapel. T h e land on which the new bank is built was purchased for ,£24,000, and the building erected thereon cost ,£30,000. Mr. McArthur may be justly styled the Patriarch of Victorian Banking, and of him m a y it in truth be written that no colonist, through a long, honourable, and oft-times unpleasant career, has more justly earned for himself the reputation of being a conscientious, considerate, and obliging public officer, and an upright citizen. H e passed from the Melbourne managership to the position of general superintendent, and after several years' service in this responsible post, retired on a liberal superannuation allowance, and was one of the Managing Directors until his death on the 15th November, 1887. THE UNION BANK OF AUSTRALIA
Took over the business of the Derwent Bank Agency, and on the 8th October 1838, opened a branch in Melbourne. It was also driven to be content with a " tyvo-roomed cottage and a back skillion." This money-changing cottage stood at the corner of Queen and Little Flinders Streets, and the manager was Mr. William Highett. Between the two managers, though there was an honest rivalry, there yvas no enmity, and they got on very well together. But Highett never took kindly to McArthur's bull-dogs. The thing was all very well in theory; but practically he looked upon such a precaution as nonsense, and whenever he met McArthur, he never failed to enquire " H o w are the dogs ?" T h e question or salutation "How's the poodles?" was unknoyvn at that day. But experience soon taught Mr. Highett that live bull-dogs m a y at times be more useful in bank protection than thefire-armslangily known by the same designation. N o w of all the axioms in bank defensive operations, perhaps the soundest is, to place the treasury, or cash safes, in the middle of the building ; but in the double-roomed cottages referred to, the want of space rendered the observance of this condition impossible. A s stated, Mr. McArthur had his cottage-bank environed with a spike-studded fence or palisade, and his protectors when off the chain, were free to amuse themselves as they liked, in an enclosed circuit round the building; whereas the Union Bank cottage was so placed that its walls abutted unprotected upon two streets. T h e Little Flinders Street side was probably the more exposed part; yet against this side wall the bank safe was placed, with perhaps not more than a brick-and-a-half or two bricks of thickness between it, and the outer world. T h e sharp-eyed burglars not only noticed the strategical mistake, but very soon took advantage of it; for on the night of the 29th May, 1840, an adroit, and nearly successful attempt yvas made to plunder the Bank. T h e part of the wall corresponding with the exact position of the safe (of course previously ascertained) was operated upon; the bricks yvere easily and noiselessly removed, and an aperture sufficient for the safe's exit effected ; but as the thieves were adjusting a rope round their booty, an unintentional noise aroused the manager, who, jumping out of his " skillion " dormitory, raised an alarm, and, res infecta, the night-birds flew away, cursing their ill-luck and disappointment. A few minutes more without interruption, would have enabled them to have got away with some .£3000 or ,£4000, the then daily working cash ofthe branch. T h e attempt was never repeated, and from that night Highett never more joked McArthur about his " bull-dogs." In 1840 the Bank was thus manned :—Local Directors, Messrs. William Highett, William Lonsdale, and W . F. A. Rucker; Managing Director, Mr. W . Highett; Accountant, Mr. F. Wigan; Teller, M r . Nigel Gresley ; Sub-Accountant, Mr. Thomas Prosser ; Clerks, Messrs. John Murdy, John M'Lachlan, and W . Cohen. After some time, what was deemed to be a commodious banking-house, yvas erected on the same corner in the form of a plain, two-storied, brick building. People of the present Melbourne generation yvould probably smile if they saw a model of the new bank as then built to order. Yet the business went on in it comfortably and profitably for some years. Mr. Highett yvas for many years known as a quiet, attentive, conscientious and highly Conservative M e m b e r of the Legislative Council. H e was elected to the Eastern Province in 1856, and continued in that representation until 1880, when he retired from active political life, leaving behind him a mint of money, yvhich, though umvilled to anyone, soon found plenty of legal ovvners. Having obtained a two years' leave of absence, Mr. Highett visited England, and never after resumed the managership, though he long continued a member of the Directory. H e died soon after retiring. Mr. Highett was succeeded by Mr. Thomas Elder Boyd, who, many years after, died in harness as Manager of the Colonial Bank. In seasons of " tightness," Mr. Boyd had the good or evil reputation of being a thorough " pincher." The interest of his bank was Mr. Boyd's sine qua non of every financial consideration, and if squatter, or trader in the bank-books showed symptoms of "going," the screw was put on with the rigour of an Inquisitor. Therefore the bank passed through some severe colonial crises, with fewer losses than if there had been a softer " m a n at the wheel." It was stated in a neyvspaper of 1844, that on Mr. Boyd's retirement from the management, to be succeeded by a Mr. William Fletcher, the salary of the office was raised from ,£600 to .£800 per annum. The Union Bank, after a time, went back to the spacious building at the same corner (Queen and Collins Streets), where the Derwent Agency yvas originally opened; and the Cpieen-cum-YxttXe Flinders Street tenement was turned into yvhat was for many years known as the Woolpack Lnn which had a series of landlords, good, bad, and indifferent. T h e Bank has again removed into the stately structure in the heart of Collins Street, where the old Royal Hotel, and the mediaeval Criterion successively flourished. T h e ground originally bought for ,£19, now cost ,£33,000, and ,£44,000 was expended on the building Perhaps there are no tyvo facts in the whole history of Victoria, more illustrative of the wonderful progress. of its capital, than the " now " and the " then " of the Bank of Australasia and the Union Bank. T o turn the mind's eye back to the two two-roomed brick cottages and their managerial " skillions," in which these banks began the world, so to speak, and then in the flesh to look, not only on the two striking edifices of thesefinancialestablishments in Collins Street, but on other kindred Institutions foremost amongst the architectural ornaments of the Metropolis of to-day, one regards with wonder its marvellous progress and development yvithin the memory of many persons still living. THE PORT PHILLIP BANK.
The colonists took it into their heads to set up a bank of their own ; but the maiden essay at bank-making though not terminating in a smash, after a short life and a merry one, died a natural death. A meeting of the projectors was held on the 25th June, 1839, and the following basis of operations was agreed on :— It was to be known as " T h e Melbourne and Port Phillip B a n k " with a capital of ,£60000 in ^ o o .£40 shares. A Prospectus was approved, and the following Provisional Managerial Board was elected :—Trustees: Messrs. Joseph Hawdon, A. M . Munday, and Peter Snodgrass. Directors : Messrs. D. S. Campbell, S. Craig, C. H . Ebden, Arthur Hogue, F. A. Powlett, G. B. Smythe, P. W . Welsh, C. Williams, Thomas Wills, and W . H . Yaldwyn. Mr. Samuel McDonald was Secretary pro tern. Another meeting was held at Williams' Auction Room, on the 2nd December, Mr. G. D. Mercer presiding, when it was agreed to double the number of shares, i.e., 3000, to increase the capital to £120,000 and change the title to "The Port Phillip Bank." ThefirstDirectory consisted of Messrs. Farquhar, M'Crae, D. S. Campbell, Charles Williams, Thomas Wills, S. Craig, P. W . Welsh, F. A. Powlett, C. Howard, Alex. Thomson, and Foster Fyans. The defeated candidates being Messrs. H. F. Gisborne, J. P. Fawkner, and Captain Smyth. The Managing Director was Mr. John Gardiner. For the Solicitorship there yvere two aspirants, viz, Messrs. James Montgomery and H . N. Carrington. The former was appointed, and the 2nd January, 1840, fixed for the commencement of business in a tyvo-storied house in Collins Street, which afterwards became the habitat of the Port Phillip Club, then an hotel, and after undergoing as many alterations as the Irishman's gun,finallydisappeared, to, make way for the Bank of Victoria, now built in its place. Great results were anticipated from this venture but were never realised. Mr. Gardiner was sent to England to do a littlefinancingin the London money market, and in 1840 the Bank was thus officered :—Managing Director : Mr. G. D, Mercer. Accountant : Mr. B. J. Bertelsen. Teller : Mr. G. B. Eagle. Clerk : Mr. John Patterson. At a meeting of shareholders on the 30th December, 1842, it was decided " That the Bank should cease to carry on business; and that its affairs be wound up and cleared with as little delay as may be consistent with prudence." W o u n d up it was accordingly, and however its shareholders fared, not a shilling was lost by depositor or customer. The collapse might have been attributed to the free-and-easy manner in which some of the Directors accommodated themselves and their friends. They regarded the Bank simply as a " mutual accommodation " pie, and accordingly kept their ownfingersin it. Several years after the Bank's closing, a notification, signed by F. D. Wickham, and J. W . Howey, as Trustees, appeared in the newspapers of the 3rd May, 1851, intimating that a deed of release was ready for execution by shareholders, and that afinaldividend of 9d. per ,£10 share would be paid to them on such execution.
THE TRADESMEN'S BANK.
Mr. J. P. Fawkner, no doubt smarting at his rejection as a Director of the Port Phillip Bank, had his revenge by starting an institution of his own, and a number of persons agreed to co-operate in organising a " Cash-mill," out of which all were to reap a golden harvest, without money, trouble, or risk. The new venture yvas to take in Melbourne and Geelong, and to possess a capital of £100,000 in £o shares. A grandiloquent prospectus was concocted, but it never passed beyond the advertisement stage, and shared the fate of many of those good intentions with which a certain nameless region is said to be paved.
T H E B A N K OF N E W S O U T H
WALES.
O n the 2nd April, 1851, a branch of the Bank of N e w South Wales yvas established at the corner of William and Collins Streets, in premises which once formed a large butchery, kept by Mr. W . H. Mortimer, one of thefirstMelbourne Aldermen. The Bank was under the management of Mr. C. S Vallack, with Messrs. Archibald M'Lachlan and D. R. Furtado as Directors, the Accountant being Mr. John Badcock. O n the ist July, 1858, it transhipped itsflourishingbusiness to the solid structure in the heart of the Collins Street block, where it still continues. The land upon which the banking-house is erected, was bought for £ 6 0 0 0 in 1852, and the building cost £38,000. THE BANK OF VICTORIA.
But if the first attempt at local Bank-making was a decided failure, the second eventuated in a decided success, and as such merits special mention. In the year 1852, when Melbourne yvas floundering in the throes of the incipient revolution, evolved by the gold discoveries, the Bank of Victoria yvas originated in this unpretentious manner. Dr. T h o m a s Black, a physician of high professional and social status, occupied, in 1852, the mansion at Richmond, well-knoyvn as Pine Grove (now, 1888, the residence of Mr. George Coppin) and here one evening he entertained at dinner Messrs. William Highett, H . J. Chambers, and R. M'Arthur of Gippsland. Inspired by the exhilarating influence of yvine and walnuts, the host, in the midst of a desultory conversation, was suddenly seized with a banking mania, and suggested to his friends the feasibility of starting a local bank. A s to its success he had not the slightest doubt, and he thought it not at all to the credit of Victorian enterprise that the English Banking Institutions should have everything their own way. T h e suggestion took, and Highett, w h o was not only an experienced Bank Manager, but a m a n of mark, expressed himself in favour of the project, and promised his hearty co-operation. T h e subject yvas pretty exhaustively talked over, and the Doctor determined that on the following morning he yvould set out on his mission of bank-manufacturer. H e and Chambers met early in the toyvn, and started forth to beat up recruits. T h efirstperson they visited was Captain George Ward Cole, pottering about his yvharf, and on mentioning the subject to him he shook himself, after the manner of one disturbed from a deep reverie, and roared out: " I'll have nothing to do yvith it ! " T h e pair returned to town and went in quest of Mr. Henry Miller. O n reaching the eastern extreme of Collins Street, knoyvn as Howitt's Corner, they beheld the object of their anxiety plodding quietly up the hill with the precision of a slow going locomotive ; but Miller, yvhen informed of what was in the wind, curtly and emphatically exclaimed, " I'll have nothing yvhatever to do with it, Doctor Black !" Cold blanket No. 2, but Black declared he should and would have a new bank. They then called on M r . Germain Nicholson, in his well-known shop at the corner of Collins and Swanston Streets, and he yvas thefirstthey enlisted. Mr. William Nicholson also agreed to go in with them. Mr. H u g h Glass was next button-holed, and he not only promised to become a shareholder, but declared his readiness to take up any shares remaining after a public meeting, which was to be called to set the speculation afloat. M r . William Westgarth also offered to help the project in every possible way. T h e stone set going kept rolling along, though unlike the generality of rolling stones it gathered a good deal of moss. T h e public meeting was promptly held at the Royal Hotel, in Collins Street.* Mr. Westgarth presided, resolutions affirming the expediency of starting the bank were passed, the amount of capital and number of shares determined, and ere the close of the proceedings all the shares except 500 yvere taken up. Black, seeing this result, hurried away to find H u g h Glass, but he was followed by Westgarth, who told him he need not trouble himself with Glass, because Mr. Miller, who had been in the room, had taken the remaining shares. T h e next question was to procure suitable bank premises. Dr. Black had three two-storied houses on the east side of Swanston Street, between Collins and Little Flinders Streets, yvhich he knocked into oneforthe purpose. This was agreed to, and Dr. Black dreyv £ 1 5 0 0 per annum rent for eleven years, when the bank removed into new premises. Chambers also received the solatium of appointment as the Bank Solicitor, but he did not stick to it as he ought, or he might have done well out of it. The career of the Bank of Victoria has been one of marked prosperity. Its capital yvas £1,000,000, and itsfirstBoard of Management comprised Mr. Henry Miller, Chairman; Mr. William Highett, DeputyChairman ; Directors: Messrs. W . Nicholson, W . F. Splatt, W . H . Tuckett and Alexander Wilson ; Manager, Mr. John Matheson. It was opened on 3rd January, 1853, and on 30th June the same year, the first dividend yvas declared, at the rate of 10 per cent, per annum. T h e present bank in Collins Street is erected on land which cost, in 1863, £12,000, to which was subsequently added £10,000 worth more extending to Little Flinders Street, or a total land cost of £22,000; and the present buildin°- involved an outlay of £40,000. Mr. Matheson continued itsfirstand only Manager until the end of 1881. H e died on the ioth July, 1882. •The name of this hotel was afterwards changed to the Criterion, where, in 1854 three pardoned Irish State Prisoners (Smith O'Brien , Martin and O'Dogherty) were feted on their return via Melbourne from Van Diemen's' Land to Europe. THE FIRST SAVINGS B A N K
Was gazetted on the 17th December, 1838, its first Trustees being Captain William Lonsdale, Rev. Messrs. J. Clow and J. C. Grylls, Captain B. Baxter, and Messrs. Craig and A. J. Smith, merchants. All these gentlemen are now dead, except Baxter, who is still in the colony. It was not opened for business till the ist January, 1842, with the following formidable list, of w h o m all but the Accountant were honorary:— President, His Honor C J. Latrobe, Superintendent; Vice-President, James Simpson, Esq, J.P.; Trustees, Messrs. Thomas Wills, S. Craig, James Graham, J. A. Smith, G. W . Cole, J. D. L. Campbell, C. Hutton, R. Martin, Revs. A. C. Thomson, James Forbes, A.M., and P. B. Geoghegan; Accountant, Mr. James Smith ; Office, Melbourne Chambers, Collins Street; Bank of Deposit, Bank of Australasia. For several years the operations of this bank were rather limited, and I recollect it yvas kept on the first story of a smart-looking building in Collins Street, nearly opposite the Bank of Australasia—the Bank Staff consisting of the Manager and a boy ; and a rather original customer the Manager was. All old colonists knew Mr. James Smith—better known as " Jemmy." H e yvas dry, cautious, yet simple-minded, and had acquired an alias of an "inexpressibly" musical character. H e was a pluralist in small appointments, some honorary and some stipendiary; the right-hand m a n of M r . Latrobe, a Justice of the Peace, Visiting Justice at the gaol, and one of the Council of three Licensing Magistrates, w h o for years dispensed favours or frowns to the publicans of Melbourne. A s to the bank, Mr. Smith was its Comptroller, Secretary, Actuary and Cashier; and no bank in the world ever had a more scrupulous or painstaking officer. The Savings' Bank was a sort of mania with him. It was not a hobby—for Mr. Smith was not partial to riding—it was rather his baby; and no mother ever nursed herfirst-bornyvith more parental solicitude than " J e m m y " cradled the bank. H e "dry-nursed" it well, and m u c h of his existence seemed so interwoven with it, that anyone opening a half-crown account there might safely calculate upon " J e m m y ' s " good offices. I have known more than one designing scamp curry favour with the old m a n in this way ; for a Savings' Bank depositor was, to his mind, a something almost incapable of wrong-doing. In 1843 the Bank tookfireone night, and I met " J e m m y " next day in Collins Street. H e was in great tribulation, and after m y short condolence, informed m e , yvith a laugh (something between a chuckle and a cackle), " that the cash was all safe, for he always sent it over the way to his friend, Mr. McArthur, of the Bank of Australasia, and the books and papers had been luckily saved." T h e bank still held on, and " J e m m y " held on to it until its increasing business, and his increasing years rendered his retirement a necessity, when he left the colony and lived many years in England, where he was gathered to his fathers not very long ago at the ripe old age of between eighty and ninety. Mr. Smith had many little oddities, but at heart he was honest and kind; and though he sat on the Police Bench at a time when a magisterial colleague took bribes right and left, no one ever suspected " J e m m y Whistle " of soiling hisfingersin such a way. T h e bank atfirstused to discount good endorsed bills, and advance on mortgages. It allowed 5 percent, on deposits, and after the first year increased the rate to 7 ^ . In 1844 this fixed rate was discontinued, and one substituted by which the interest allowed would depend on the amount of profits, provision being made for a security fund. A n Act of Council was also passed doing away with bill-discounting, and restricting the mortgage loans to one-third of the funds—the residue to be invested in Government securities or bank shares. In the most perilous times this institution seemed to have been piloted with extreme caution, and little or no losses were made, owing mainly to thefosteringcare of its ever-vigilant manager. " OUR UNCLES AND OUR AUNTS."
On tne Jacilis decensus avemi principle, the transition from banking to the avuncular mode of «financing" popularly known as pawnbroking, is a short one. In modern times a town can hardly be said to be complete without its "three golden balls," hung out as a bait, but which convey the fact that "all that glitters is not gold, yet pawnbroking does notfigureamongst the very early money-making ventures in Melbourne It m a y be accepted as an indication of the then general prosperity of the community. Certain it is that m early Melbourne the publicans, butchers, and bakers, were the most prosperous of the retail traders. Drinking and eating prevailed in abundance, and due honour was done to both animal enjoyments. T h e origin of pawnbroking is very remote, and traced from Perousa, in Italy, whence it is said to have been transplanted to England by Mich, de Northburg, Bishop of London, in the reign of Edward III. Primarily, the payvnshop was the reverse of the usurious abomination it has proved in modern times. It was a M o n t de Piete, a kind of benevolent institution, designed to advance loans to necessitous persons at a moderate interest. M o n e y was lent on a " pledge," but the benefit of the borrower was regarded equally with the profit of the lender. O n e of the regulations of the original pawnbroking establishment in London was, that in the event of a pledge remaining unredeemed for a year, the preacher at St. Paul's Cross announced that if not released within fourteen days, it would be sold forthwith. T h e "three-ball" sign is the ancient symbol of the Italian Bankers, notably the Lombards, from the most eminent of w h o m the princely house of the Medici of Florence sprang. In allusion to the professional origin of the n a m e of " Medici" (that of medicine) they bore gold-gilt pills on their shield; and their agents in England and other countries hoisting their armorial bearings as business emblems, such a trade cognizance yvas adopted by others, and thus in course of time became general. T h e popular interpretation of the triple ball implies that the chances are as two to one that a pledger never recovers the article "popped up the spout;" and the general result of Melbourne pawning does not belie the general supposition. T h efirstreference to pawnbroking in this colony is the appearance of Mr. John Stephen, before the City Police Court on 7th March, 1848, to apply for the issue of a pawnbroker's license to a Mr. Samuel Whittaker, a recent arrival from V a n Diemen's Land. T h e application was m a d e under the 29th and 30th Geo. I V , yvhich, it yvas contended, was then in force in Port Phillip. There yvere several pawnshops in Launceston and Hobart T o w n , but a special Act of Council had been passed in V a n Diemen's Land for their regulation. T h e Magistrates had strong doubts as to their poyver to grant the license ; and one of them a barrister (Mr. R. W . Pohlman), advised the refusal of the application, when, if considered advisable, the Supreme Court could be appealed to. This was done, and the subject dropped for the time. T h e N e w South Wales Legislature, however, took the matter in hand, and "Whereas it was necessary and expedient to regulate the trade of pawnbrokers in the colony," the Act 13 Vic, N o . 37, yvas passed (ioth October, 1849), for that purpose, and very little time elapsed before its provisions yvere utilized both in Sydney and Melbourne. In London slang, the pawnbroker is affectionately knoyvn as " M y Uncle," whilst in amusing contrast, this often useful relative is termed by the French "Ma taule" " M y Aunt;" and a more amusing paradoxical fact still is that the "Uncle" N u m b e r O n e of Melbourne, was actually an "Aunt," a Mrs.,Anne Willis, w h o obtained a pawnbroker's license, on the 12th November, 1842, and instanter commenced her obliging operations in a small weatherboard " bunk " in Bourke Street, where till lately, the Omnibus office issued tickets of a very different kind, to the mysteriously hieroglyphiced duplicates known as "Willis's paper currency." Mrs. Willis had but a neck and-neck start of Old Whittaker (the previously refused applicant), for later the same day he took out his " ticket-of-leave," and displayed his trade mark of "the Medici " on a small shop at the south-west comer of Queen and Little Collins Streets, where n o w the Temple Court Hotel insinuatingly invites passers-by to enter and refresh. Whittaker was a sharp-faced. hot-tempered, shreyvd customer, and just the manner of m a n to make the business turn in a good dividend, O n the 26th of the month, a Mr. J. P. Plevins also procured a license, and opened a third "spouting" shanty, in the congenial region of Little Bourke Street, in rear of the Theatre Royal. There yvas no further increase in the trade till the close of 1850, when Mr. John Browning arrived from England with the intention of engaging in agricultural pursuits ; but when he sayv hoyv matters went, it occurred to him (as he had been a pawnbroker in the old country), that his former trade yvould be likely to turn out a surer "spec." than ploughing and pig-feeding; so he took premises at 167 Elizabeth Street, and applied for the requisite license. T h e " A u n t " and the two " Uncles " before-mentioned yvere up in arms against the intruder. They would have the gold ball vintage to themselves, and no interlopers were wanted. W h e n the application was heard at the Police Court, a couple of lawyers were retained against the " new chum," and the license was refused, through the influence, it yvas believed, of an Aldermanic Magistrate on the bench, yvho had some m o n e y lent out at heavy interest in the trade. Browning persevered, and succeeded, and remained in " N o . 167 " for m a n y years, obliging the public and benefiting himself. Though payvnbroking is not as a rule, conducted with stringency and method, the m o d e of doing business in the old days was lax to a degree, as the Pawnbroking Act was very inefficiently administered. A s to interest there yvas nothing to legally prevent the " brokers " from charging what they pleased, and was usually at the rate of one penny per week for the loan of one shilling, nearly 450 per cent, per annum ! Mr. Browning served out the would-be exclusionists, by reducing the interest, a step which did not tend to m e n d matters. In November, 1850, a Mr. Joseph Forrester, a silversmith, obtained a license, and from 100 Bourke Street, advertised his rate of interest on loans as at one halfpenny per week for each shilling or tenpence by the £ 1 . It was another usage of the trade in the early days that in n o case more than £ 1 was advanced on a watch, n o matter h o w valuable. T h e Jews n o w croyvded to the front, and, in course of time, secured more than a lion's share of the spoil. A pawnbroker has informed m e that it was customary for lucky diggers to call at his place, and pledge at times several hundred pounds' worth of nuggets as securityfora £ 1 loan; the object being that, as the "broker" was a m a n of acknowledged solvency, by the payment of an insignificantly small sum as interest on the loan, their gold was kept in safety. A curiously similar custom is said to obtain in China, where, at the close of winter, well-to-do people "spout" their sables, silks, and costly raiment, casting on the payvnbroker the onus of keeping them protected from the ravages of the moth by the application of camphoretted herbs, and other means; and thus, for a comparative trifling fee, they are released from limbo yvhen required, in a condition of preservation. Pawnbroking, like m a n y other accompaniments of civilization, is a necessary evil. M o r e care in granting licenses, and a stricter police surveillance, would weed out the disreputable members of a business which is not so bad as it is painted. If people did not go to their " Uncles " or their " Aunts," neither of those relatives would c o m e to them. It is the abuse and not the use of payvnbroking that constitutes the evil. In yvhat is known as the Melbourne proper of the present day, there are n o w (1882), forty-seven pawnbrokers, viz. :—forty m e n and seven w o m e n ; or in other words, forty " Uncles " and seven " Aunts," only too ready and, willing, for sufficient consideration, to minister to the small financial difficulties of a population of 65,675 persons, sub-divided into 33,289 " Nephews," and 32,386 " Nieces." OLD MELBOURNE LOYALTY.—KING WILLIAM THE FOURTH.
In all the periodical ebullitions of fealty to the reigning Sovereign which have taken place since the settlement of Victoria, undoubtedly there is not one of such a remarkable character as the first celebration of the kind in Port Phillip, namely, a public demonstration of the Aborigines. In 1836, when the European population were few, troops of the natives prowled about everywhere, marvelling what the white fellows were doing, and only too thankful to participate in the bounty of the invaders, not particular either whether the largesses assumed the form of old blankets or petticoats, broken victuals, a drop of rum, or a fig of tobacco. There yvas then in the " u n n a m e d village" a Mr. Charles J. D e Villiers, afterwards an officer in one of the corps of trooper-police, and it occurred to him that it would be a very proper thing to keep up the birthday of William I V , "the Sailor King," by applying to their savage sensibilities the argumentum ad stomachttm. H e had little difficulty in obtaining plenty of "tucker," such asflour,meat, tea, and sugar, and it did not require cards of invitation to get together a numerous horde of guests—men, women, and children. T h e anniversary of the Regal Nativity was the 2ist August, and on that day, on the green hill in Collins Street East, where the statue of Bourke and Wills stood till recently, this alfresco Birthday/^ came off. For thefirsttime the Union Jack, unfurled from the bough of a wattle tree,floatedin a place fated in a few years to become the principal street of a large city; and, under itsfluttenngs,the swarthy m o b ate and drank, not caring a rush about anything save mere animal enjoyment. There were neither toasts nor speechifying; but, after dark, the Aborigines had the good manners to treat the yvhites to a return entertainment further away on the hill, where the Parliament Houses were opened just twenty years after. T h e blackfellows, having nothing to give, treated their guests-for thefirsttime performed before white m e n - t o their great national dance, k n o w n as the "ngargee." Sem.circhng a huge bonfire, they pirouetted like so many dusky d e m o n s around the flames, which, leaping up to the sky, illumined the then houseless surrounding country. There was a " Wer-raap," or native sorcerer, amongst them, but in his soothsaying yabberings he evinced little prevision of the strange " corroborees " of supposed civilization yvhich the same spot was destined, or doomed, to witness before the world was very m u c h older. A n d thus it was that the King's Birthday was kept up. As a rule, from 1840 to the present time, no colony in the British dominions has been more punctilious in its manifestations of loyalty; scarcely a natal anniversary has been allowed to pass without a "Birth-night Ball," and during the day some attempt at a parade, review, or other open-air celebration. Five of these demonstrations are deserving of special mention. QUEEN VICTORIA'S MARRIAGE.
On receipt, in 1840, ofthe intelligence of this auspicious event the colonists hastened to give public expression to their congratulations, and a meeting was convened by the following gentlemen at the rooms ofthe Auction Company on the 24th July, 1840, for that purpose:—William Henry Yaldwyn, J.P. ; Joseph Hawdon, A. H . W . Ranken, J.P. ; Arthur Kemmis, J.P. ; J. Barroyv Montefiore, William Meek, D. S. Campbell, P. W . Welsh, J. O. Denny, Jonathan B. Were, James Simpson, J.P.; Robert Deane. T h e Superintendent of the Province presided at the meeting, and, on the motion of Mr. R e d m o n d Barry, the following Address prepared by Mr. Barry was adopted, and ordered to be transmitted through the proper official channel to its destination :— " T o H e r Majesty, Victoria, by the Grace of God, of the United Kingdom of Great Britain and Ireland, Queen, Defender of the Faith, etc, etc. " W e , the undersigned inhabitants ofthe T o w n of Melbourne and District of Port Phillip, beg leave, yvith sentiments of profound respect, to present to your Majesty our sincere and heartfelt congratulations on the event of your Majesty's marriage, intelligence of which has but lately reached these distant shores. " Although situated at so remote an extremity of your Majesty's dominions, we beg leave to assure your Majesty that our veneration for the institutions of our parent country remains unabated, and our affectionate attachment to the Royal person and family of your Majesty glows with undiminished ardour in our breasts. " With such feelings w e beg leave to express a fervent hope that the alliance your Majesty has been pleased to form may prove auspicious, both as regards your Majesty's domestic relations, and also as regards the varied interests of the vast population of your Majesty's extensive empire." BIRTH OF THE PRINCE OF WALES.
The news of the birth of an Heir Apparent to the throne, was received with a thrill of pleasure in the Province, and at a public meeting held on the 23rd April, 1842, in the Royal Exchange Hotel, Collins Street, Mr, S. Raymond, the Deputy-Sheriff, moved that His Honor C. J. Latrobe should preside. Major St. John seconded the motion, and His Honor briefly and appropriately addressed the assemblage. M r . William Verner moved, and Dr. Martin seconded the folloyving resolution :— "That the intelligence of the birth of an Heir to these Realms has been received yvith the greatest joy throughout the Province of Australia Felix."—Carried. O n the motion of the Hon. J. E. Murray, and seconded by Mr. F. A. Powlett, it yvas resolved, "That the following Address be adopted as the Address ofthe colonists of Australia Felix to H e r Majesty on this joyful occasion ": — " T o the Queen's Most Excellent Majesty. " The humble Address of her subjects in Australia Felix : " Most Gracious Sovereign.—We, the inhabitants of your Majesty's distant, but most loyal Province of Australia Felix, embrace the earliest opportunity in our power of congratulating your Majesty on the auspicious birth of a Prince. " So important an eventfillsus with gratitude to that Providence yvhich has thus early crowned your Majesty's domestic happiness, and opened to your people the cheering prospects of permanence and stability to the blessings they derive from the wisdom and steadiness of your Majesty's propitious reign. "M a y the Almighty bless with perfect health and length of days the Royal Infant. "Long,flerylong, may your Majesty live the guardian, the protector, the ornament and delight of your faithful and devoted subjects, throughout that extended Empire on which the glorious sun of Heaven never sets, and by your instruction and example form the mind of your Royal son to the government of a free, a brave, and generous people. M a y that son, in the fulness of time, succeed to the virtues, as well as Throne, of his Royal Parent; and preserve for a long succession of years, the glory, the happiness, and the prosperity of this our Province, and all other dominions of the British Crown." Mr. James Croke moved, and the Rev. J. Y. Wilson seconded, the nomination of Messrs. James Simpson, James Croke, F. B. St. John, Hon. J. E. Murray, F. M'Crae, and J. W . Stevens as a Committee to obtain signatures, and take the necessary steps to forward the Address. A PRAYER FOR THE QUEEN.
The following Form of Prayer and Thanksgiving to Almighty God,forHis merciful preservation of the Queen from attempted assassination by John Francis, on the 30th May, 1842, was prepared by the Rev. A. C. Thomson, Episcopalian minister, and offered at morning and evening services at St. James' Church, on Sunday, the 30th of October, and for thirty days after:—"Almighty and everlasting God, Creator and Governor of the world, who by Thy Gracious Providence has oftentimes preserved Thy chosen servants, the Sovereigns whom Thou hast set over us, from the malice of yvicked m e n : W e offer unto Thee our humble and hearty thanksgivings for Thy great mercy now again vouchsafed to us, in frustrating the late traitorous attempt on the life of our Sovereign Lady Queen Victoria. Continue, we beseech Thee, 0 merciful Lord, Thy watchful care over her : Be Thou her shield and defence against the devices of secret treason, and the assaults of open violence : Extend Thy gracious protection to the Prince Consort, the Prince of Wales, and all the Royal Family : Direct and prosper her Counsels, and so guide and support her by Thy Holy Spirit, that evermore trusting in Thee, she may faithfully govern Thy people committed to her charge, to their good, and to the glory of Thy holy name. A n d to us and all her subjects, O Lord, impart such a measure of Thy grace, that under a deep and lasting sense of Thy manifold mercy, we may show forth our thankfulness unto Thee, by loyal attachment to our Sovereign, and dutiful obedience to all Thy commandments. Give ear we beseech Thee, O merciful Father, to these our supplications and prayers, yvhich we humbly offer before Thee, in the name and through the mediation of Jesus Christ, our only Saviour and Redeemer.—Amen." Thefirstact of the Toyvn Council of Melbourne, at the meeting of that body, on the 15th December 1842, yvas the adoption of an Address to Her Majesty, with reference to the same providential escape. A BIRTH-NIGHT BALL.
As a sample of those entertainments, I append some particulars ofthe last of the old series, which was held on the 23rd May, 1851,fiveyveeks before the birthday of the colony of Victoria. This was to be a great affair in consequence of the change in the political conditions of Port Phillip, and every exertion was made to render it a grand success. From the accounts printed of the affair, it seems to have eclipsed any previous attempts of the sort in the settlement. Mr. Latrobe (now a Lieutenant-Governor), Mrs. Latrobe and suite, arrived about 9 p.m., and were received at the door by a guard of honour, the band playing the National Anthem. T w o bands (Megson's and Hore's), played alternately, and there was no lack of music. The supper yvas laid in the billiard room, yvhich was inconveniently small. Mr. Latrobe, after proposing the Queen's health, which was rapturously received, withdrew to the ball-room, and his place was taken by Colonel Anderson, who " toasted " the Lieutenant-Governor, and denounced " those editors who were in the habit of blackening His Honor's private and public character." Mr. William Hull, in a glowing eulogy, gave " T h e Army and Navy," yvhich was gushingly responded to; and at 2 a.m., the Latrobe contingent retired, but a general clearance yvas not made until after four o'clock. The event gave much satisfaction. The attendance was unprecedentedly respectable, as the stewards "had shown much care in the issue of tickets, and refused some who had misconducted themselves on former occasions." Yet the supper was pronounced " passable," but the champagne was, " except a few bottles, execrable."