ENEMY BANKS

Dominion, Volume 11, Issue 161, 27 March 1918, Page 7

ENEMY BANKS

THE WINDING-UP PROCESS, Sir William Plender, controller of tho <momy banks in London, has made his second report to the Chancellor of the Exchequer, covering the progress of the winding-up during the year ending September 30 last. He states that twelve months ago he asked to'be relieved of his offi'co, but at,the Treasury request consented to continue tho work. Except for tho purpose of completing transactions entered into before August, 1914, tho business of enemy banks in London has, he says, ceased, and the relation between them and their non-enemy clientele have been broken. Tho approximate total assets of tho five German and Austrian banks in London aro £11,188,178, which leaves a surplus over liabilities of £2,321,298.

"Tho work remaining to be done has to no small extent been impeded by tho inadequacy of the staffs, as it has been impossible, in view of tho enemy origin of tho banks and the dislike to enter their service, to obtain assistance of the skilled nature required." Three managers of enemy origin have been interned during tho year, only seven onemy subjects now remain at the. banks. Tho total remittances from. Germany for distribution by tho London Agency'among'prisoners of war and interned Germans amount to £190,000; tho number of weekly payments varies between 3000 and 3500.

Non-enemy owners liavo during the, year received £624,000 of their money} held for 6afo custody in tho enemy banks of London. Tho indebtedness of; the enemy banks to tho Bank of England has been reduced from 15 millions to 4 millions. Enemy authorities have apparently refused to permit delivery, of communications to non-enemy creditors in Belgium, asking them to transfer their credit balance to-British, Allied, or neutral banks; in somo cases the letters have been returned through the post office. ■

Tho cost of the" control of the five enemy banks during the war has been £34,602, entirely defrayed out of the assets of the banks. "It is impossible," says Sir William, "for the affairs of the London branches to be finally, liquidated during tho war within the terms of tho licenses, if by 'final liquidation' is meant the collection of all assets, other than enemy assets, and tho repayment of tho advances by tho Bank of England, £4,104,108."