BANKS ASSAILED

Sun (Auckland), Volume III, Issue 875, 20 January 1930, Page 9

BANKS ASSAILED

HATRY REACTION CAUSING CONCERN IN LONDON POOL TO RECOUP PUBLIC United P. A.—By Telegraph—Copyright Reed. 12.30 p.m. LONDON, Sunday. The Stock Exchange announcement of the formation of a pool of £1,000,000, from which holders of worthless Hatry securities may be largely recouped is received with acclamation by the public, who see in it only the brokers’ magnanimous action in shouldering responsibilities which are not technically theirs. The brokers themselves, however, are not so enthusiastic. Many are vigorously protesting that the banks should be asked to contribute to the pool, since it was largely “bankers’ folly” which enabled the crash to reach such large proportions. Whether or not such a judgment is justified, it is certain the bank’s prestige is affected by the fact that several most ill-advised advances were made to the Hatry Group, without adequate investigation. The present temper of the city is markedly against the banks, which are regarded as exhibiting a tendency to adopt more short-sighted views than the present circumstances are believed to necessitate. The question of the banks’ attitude toward industry is likely to loom large in the near future. Even “The Economist,” usually the most cautious publication, roundly declares: “The British banks have something to answer for. They do not have highly organised industrial departments comparable with those of European banks and one task that must be faced if the city is to take an active interest in industry is finding the necessary personnel and developing the necessary technique.”