THE WEST OF ENGLAND BANK.

Kumara Times, Issue 991, 3 December 1879, Page 4

THE WEST OF ENGLAND BANK.

Aff-er an investigation which has lasted for nine entire days, the case for the prosecution against the manager and directors of the West of England Bank has been brought to a close. The story is a sad one and extends over many years but its main features are sufficiently simple. The West of England Bank was started in 3836 with an available capital of half a million of money. Its original directors were gentlemen of considerable position and influence both in Bristol and in South and for many years the bank did a large and lucrative busineess. It was believed to be as solvent as the house of Rothschild or the Bank of England itself. It shares brought a high premium ; its dividends were lamella operations continued to extend * When or how its downward course first begun it would now te difficult to say. It is clear, however, that ten years ago at least, if not earlier, there were upon the books of the bank several very heavy bad debts, which ought, by all ordinary rules o r business, to have been written off. The largest of these commenced as far back as 1855, when the bank took over the banking business of Messrs TooCardiff - Among the customers of theToogoods were the Messrs Booker .and Co., a large South Wales firm, beJived to be highly prosperous, but in reality insolvent, Booker and Co. soon became indebted to the West of England Bank in a very large sum, and year by year the balance against them increased. The directors seem to have been afraid to bodly awow the existing of a loss so large, and to have determined, at any cost, to keep Booker and Co. afloat This resolve once taken, losses accumulated day by day until the position became desperate, and in 1867, half a million of money had been swallowed up, i n spite of this fact, the insolvent business was converted into-stock company under the auspices of the bank, and the public were invited to take shares in it. Such a course of conduct could have but one possible end. When the crash came at last the bank utterly lost all that it ever bad. It had spent everything, even to it paid-up capital of L 750,000. It had jpent the whole of it, reserve fund mounting to L 156 i ts deficiency leyond this, due to investors and depositors, was over L 300,000. In rounds igures, m short, a million and a quarter >f money had been irretrievably swalowed up. And yet, almost down to the lour of suspension, its published ac mints and balance-sheets had shown arge dividends and rich bonuses, which re know could not possibly have beei, a ™ ed - T *>? directors have been comQitted for trial.