Founded in 1823, the Bank of Van Diemen's Land was the first financial institution to be established in

Van Diemen's Land Van Diemen's Land was the colonial name of the island of Tasmania used by the British during the European exploration of Australia in the 19th century. A British settlement was established in Van Diemen's Land in 1803 before it became a sep ...

. Affectionally referred to as the old bank, the Bank of Van Diemen's Land traded for 68 years before becoming the first major bank failure in what would eventuate into the

Australian banking crisis of 1893 The 1893 banking crisis in the Australian colonies involved the collapse of a considerable number of commercial banks and building societies, and a general economic depression. It occurred at the same time as the US Panic of 1893 (1893–1897). ...

History

During the

British colonisation of Tasmania The British colonisation of Tasmania took place between 1803 and 1830. Tasmania was a British colony from 1856 until 1901, at which time it joined five other colonies to form the Commonwealth of Australia. By the end of the colonisation in ...

, a charter was granted by

Sir Thomas Brisbane Major General Sir Thomas Makdougall Brisbane, 1st Baronet, (23 July 1773 – 27 January 1860), was a British Army officer, administrator, and astronomer. Upon the recommendation of the Duke of Wellington, with whom he had served, he was appoint ...

, with capital divided into shares worth 200 dollars each. The Bank of Van Diemen's Land was established on 11 August 1823. Located within a premises on

Macquarie Street, Hobart Macquarie Street a major one way street passing through the outskirts of the Hobart City Centre in Tasmania, Australia. Macquarie street is named after Lachlan Macquarie, who oversaw the planning of Hobart’s inner city grid layout. The st ...

the bank commenced trading on Monday 15 March 1824. Merchant George Frederick Read served as the Bank of Van Diemen's Land's managing director from 1827 to 1849 and was one of the institution's founding shareholders. Other founding shareholders included former convict and brewer George Gatehouse and John Beamont, a free settler and public servant. Throughout Read's tenure, the Bank of Van Diemen's Land was well-managed and conservative in its lending practices. This helped to ensure the bank's financial stability and reduced the risk of bad debts. Additionally, the bank benefited from the growth of the colony's economy during the 19th century, as new industries such as agriculture and mining emerged. Over time, the Bank of Van Diemen's Land became an important financial institution in Van Diemen's Land and later for the

Colony of Tasmania The Colony of Tasmania (more commonly referred to simply as "Tasmania") was a British colony that existed on the island of Tasmania from 1856 until 1901, when it federated together with the five other Australian colonies to form the Commonwealt ...

, providing banking services to businesses, farmers, and free settlers. It played a significant role in the economic development of the island, financing the construction of roads, bridges, and other infrastructure.

Collapse

Although it had a reputation for reliability, during the 1880s the bank lent heavily to settlers who invested heavily in silver mining ventures. When the mineral prices crashed during the 1890s depression, the bank was unable to survive the number of defaulting loans. The bank closed in August 1891, and offered up its banking premises as a £1 lottery ticket. Following the bank's demise, a Royal Commission was established to investigate allegations of fraudulent activities.

Commissary notes

The Bank of Van Diemen's Land started issuing its official banknotes in 1825. The bank held a commercial monopoly in Van Diemen's Land until the establishment of the Derwent Bank in 1828.

Head office building

Collins Collins may refer to: People Surname Given name * Collins O. Bright (1917–?), Sierra Leonean diplomat * Collins Chabane (1960–2015), South African Minister of Public Service and Administration * Collins Cheboi (born 1987), Kenyan middle- ...

and a frontage along Elizabeth Street in downtown Hobart. The building was constructed with white sandstone from Tea Tree quarries, Brighton and a darker brown stone from Hestercombe quarries, Bridgewater. The two stones were used to create alternating bands along the building's façade. Constructed at a cost of £21,000, the premises officially opened on the 12 October 1885. The two-story building was demolished in 1958. The sandstone lions sculpted by artist W. Paterson which stood over the original doorway were relocated to the entranceway of St David's Park.

Operations

The bank was headed by a president with six directors, two of which would rotate out each year, a cashier, a principle, and an assistant accountant overseeing company operations.

References

Sources

* * * {{Coord, 42, 52, 55.58, S, 147, 19, 43.04, E, display=title, type:landmark_region:AU History of Tasmania Economic history of Tasmania Defunct banks of Australia 1893 disestablishments in Australia Banks established in 1823 Banks disestablished in 1891 Australian companies established in 1823 Demolished buildings and structures in Hobart