MOND’S SCHEME

Hokitika Guardian, 1 October 1931, Page 3

MOND’S SCHEME

AN EXPERT’S COMMENTS.

(Australian Press Association.)

SYDNEY, September 30

The hearing of the charges of attempting to defraud fa-mous persons in connection with the Britannia Bank against Mond and Cunningham was to* day continued. John Wilcocks, acountant, gave evidence that, while discussing with Mood some of his plans Mond said: “J am confident that we can get practically all the banking business in Australia worth having. We are going to pay interest on current accounts, and also on fixed deposits, one half per cent, in excess of the ruling bank rates.” Witness commented on 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 of a hundred millions.” Witness suggested to prove difficulties Which might he encountered with other banks, whereupon Mond answered “I will be able to clear all of the bank cheques through other companies.”

Mr Wilcocks, who is a Bachelor of Economies was cross-examined, and said that Moiid’s scheme involved the using of surplus funds in Great Britain, and in the Dominions for the development of Empire resources with the ultimate idea of making the Bluish Empire a self-supporting economic unit. Such a scheme had been occupying the world’s leading economists several years, embracing the complete control of all hanking, shipping and insurance investment,afid trusted work. Leading economists had described it was a faultless and a perfectly logical idea. Witness said that he considered that Mond was one of the most able businessmen. His methods were quite abroad. Monfi told witness that English shareholders had paid eleven millions which was held by his principals in England, Erie Jones, a Director of the Primary Producers Bank. gave evidence that Mond expressed the hope that he would he able to take over this hank, at the same time submitting a. document purporting to he a power of attorney for Sir Alfred Mond, Rt. Hon. Reginald McKenna and others. Ernest Riddle, Governor of the Commonwealth Bank, related negotiations for the suggested taking over of the Primary Producers’ Bank by Mend. On witness asking Mond for evidence of his ability to carry out the transaction, Mond replied that he was prepared to guarantee the transaction and lodge bonds for £.360,000 in sugar companies in New Guinea. Witness continued to press Mond for evidence of his bona fides, and offered to cable London for these, hut Mond gave no names to his principals. 'Witness finally told him he was only wasting time.

Witness explained that the Commonwealth Bank had been asked to finance 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 he entertained. The hearing was adjourned.