HIGH FINANCE

Evening Post, Volume CXII, Issue 80, 1 October 1931, Page 13

HIGH FINANCE

BRITANNIA BANK CASE

"EMPIRE ECONOMIC UNITY"

IMPRESSIONS OF'MQND

(United Press Association—By Electric Telegraph—Copyrifiht.) SYDNEY, 30th September. To-day the case was continued in which James Mond mid Victor Cunningham are charged ivith ill tempting to defraud various persons by inducing them to become shareholders and depositors in the Britannia Bank, Limited, and other companies they were .forming. John AVilcocks, accountant, gave evidence that while- discussing with Moxid some of his plans Mond said; "I am confident that we can get practically all the banking business in Australia worth having. Wo are going to pay interest on current accounts, a'iso on fixed deposits i per cent, in f-woss of the ruling bank rates." Witness commented ou the colossal nominal capital of the proposed Britannia Bank, whereupon Mond replied. "The people I represent are already negotiating for the purchase' of five of the smallest' European banks, which, together with those I am negotiating for here, 'is the reason for such a big nominal capital as a hundred millions." Witness suggested difficulties -which might be encountered with other banks, whereupon Mond answered: "I shajl be able! to clear .ill bank cheques through other companies." PEETECTLY LOGICAL IDEA. Wilcocks, who is a Bachelor of Economics, when cross-examined, said that Mond's scheme involved using surplus funds in Great Britain and the Dominions for the development of Empire resources with the ultimate idea of making the British Empire a selfsupporting ecionomic unit. Such a scheme had been Occupying the world's leading economists for soveral years, and embraced the complete control of all banking, ■hipping, insurance, investments, and trustee work. Leading economists had.described it as a faultless and perfectly logical idea. Witness considered that Mond vriis.a very able businessman. His methods were quite above,board. Mond told witness that English shareholders had paid, £11,000,000, which sum was held by his principals in England. Eric Jones," a director of the PrimaryProducers' Bank, gave evidence that Mond expressed the hope that ho would bo able' to take over this bank, at the same time submitting a document purporting to be a power of attorney for Sir Alfred Mond, Mr. Reginald M'Kenna, and others. BANK SOUGHT BONA FIDES. Ernest Kiddle, Governor cf the, Commonwealth Bank, related the negotiations for t>.o suggested taking over of the Primary Producers' Bank by Mond. Witness asked Mond for evidence of his ability to carry ■ out the transactions, and Mond replied that he was prepared to guarantee the transaction and to lodge bonds for £360,000 in sugar companies in• New Guinea. ■ Witness continued to press Mond i'or evidence of his bona fides, and offered to cable London for these, but Mond gave none of The names of his principals. Witness finally told Mond that he was only wasting his time. Witness explained that the Commonwealth Bank, had been asked to finance the Primary Producers' Bank until ■ such time as the Britannia Bank was registered, but as Mond was unable .to furnish ample bona fides the proposition could not be entertained. i Tho hearing was adjourned.