The Bank of Australia was a failed financial institution of early colonial New South Wales formed in 1826 by a producers' and merchants' group as a rival to the

Bank of New South Wales The Bank of New South Wales (BNSW), also known commonly as The Wales, was the first bank in Australia, being established in Sydney in 1817 and situated on Broadway. During the 19th century, the bank opened branches throughout Australia and N ...

. Brian Fitzpatrick, ''British Imperialism and Australia 17831833 : An economic history of Australasia'' (1939, London, George Allen & Unwin Ltd). It was dubbed the "pure merino" bank because its share register included the plutocracy of the colony but excluded the ex-convicts who had been associated with the Bank of New South Wales.Vic Carroll, "The old, old story: the rich get richer while the rest go under",

The Sydney Morning Herald ''The Sydney Morning Herald'' (''SMH'') is a daily compact newspaper published in Sydney, New South Wales, Australia, and owned by Nine. Founded in 1831 as the ''Sydney Herald'', the ''Herald'' is the oldest continuously published newspaper ...

, 22 May 1992, p 13 via factiva accessed 16 September 2011. When investors responded to the depression of the late 1830s by the abrupt withdrawal of capital leading to a chain of insolvencies, a number of colonial banks found that their unrestricted lending had sent prices land soaring as speculators borrowed to invest especially in urban areas. When the banks called in these loans further insolvencies occurred and a number of banks, including the Bank of Australia, failed in 1843.Norman Abjorensen, "Australians Have Always Distrusted Banks",

The Canberra Times ''The Canberra Times'' is a daily newspaper in Canberra, Australia, which is published by Australian Community Media. It was founded in 1926, and has changed ownership and format several times. History ''The Canberra Times'' was launched in ...

, 8 March 1997 via factiva accessed 16 September 2011. A number of leading colonial figures lost their fortunes with many taking advantage of the ''Insolvent Debtors Act'' 1841.

Opening

The bank opened on 3 July 1826 in George Street, Sydney."On this day", ''The Daily Telegraph'', 3 July 2010, p 36 via factiva accessed 21 September 2011. The first directors of the bank were: Thomas Macvitie (managing director),

Edward Wollstonecraft Edward Wollstonecraft (, ; 1783 7 December 1832) was a successful businessman in early colonial Australia, settling in what is now Sydney. He was the nephew of the early feminist Mary Wollstonecraft and cousin to Mary Wollstonecraft Shelley, the ...

, John Macarthur, Richard Jones,

Thomas Icely Thomas Icely (3 November 179713 February 1874) was an early colonial New South Wales landholder and stockbreeder. As a nominee Legislative Councillor from 1843, to 1853, and from 1855, until the establishment of responsible government in 1856, h ...

, John Oxley, George Bunn, W.J. Browne, Hannibal Macarthur, James Norton, and A.B. Spark.

Sydney James Butlin Sydney James Christopher Lyon Butlin (1910–1977) was an Australian economist and historian. He was born on 20 October 1910 in Eastwood, a suburb of Sydney, the second of six children of Australian-born parents, Thomas Lyon Butlin, an orchard far ...

, ''Foundations of the Australian Monetary System'', (Sydney University Press, Sydney, 1968).

1828 bank theft

In September 1828, thieves tunnelled into the Bank of Australia in Lower George Street, Sydney and stole about £14,000 pounds, described in 2008 as "the largest documented bank theft" in Australian history (in relative values and expressed as a proportion of

GDP Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...

).Mike Scanlon, "Crime of the centuries", ''The Newcastle Herald'', 7 February 2009, p 10 via factiva accessed 21 September 2011; book review: Carol Baxter, ''Breaking The Bank'' (Allen & Unwin, 2008).

References

{{DEFAULTSORT:Bank of Australia History of Australia (1788–1850) Economic history of Australia Defunct banks of Australia Banks established in 1826 Banks disestablished in 1843 1843 disestablishments in Australia Australian companies established in 1826