RUN ON A BANK.

Taranaki Daily News, Volume LIII, Issue 325, 12 June 1911, Page 5

RUN ON A BANK.

THE PLACE BESIEGED. By cable.—Pre=s Association. —Copyright London, June 9. The Birkbeck Building Society, with which the Birkbeck Bank is associated, issued the statement cabled yesterday. It stated that the ordinary depreciation of securities held by the bank, including gilt-edged securities, represented a sum which did not warrant the continuance of the society's banking business without reconstruction.

An official, interviewed, anticipated that creditors would receive 17s or 18s in the pound. He added that the run on the bank in November last led to the withdrawal of £3,000,000, of which little had been returned.

An immense crowd of depositors hesioged the building until late last night. The last balance-sheet showed that the depositors number 03,000, shareholders 19,6fifi, current accounts aggregate £2,084,784, deposits £8,449,259, and deposit reeeipts £250,281. It is understood that the recent selling of consols emanated from the Birkbeck Bank. The unfavorable position of the institution is attributed largely to investments in real estate and house property. Speculators are offering depositors in the Birkbeck Bank sixteen shillings in the pound. One speculator in possession of £SOOO in bank notes is doing business with the queue of anxious depositors. Many leading banks are assisting the Birkbeck bank. OTHER BANKS TO THE RESCUE. Received 11, 5.5 p.m. London, June 10. A number of banks offered to pay half of the Birkbeck Bank's current and deposit accounts. BANK OF ENGLAND'S HELP. Received 12, 12.25 a.m. London, June 11. The Bank of England has advanced the necessary monies to the Birkbeck Bank, which re-opens to-morrow. It will pay ten shillings in the pound.

The official statement, regarding the suspensions of the operations of the Birkbeck Bank stated that, owing to depreciation in the value of securities, the directors had lodged a winding-up petition. The estimate of the deficiency is £375,000, against which the bank holds guarantees totalling £300,000. The directors anticipate that the creditors will receive at once 10s in the £. M. Plender, the auditor, estimated the deficiency at £775.000. The Birkbeck Bank, 320 High Holborn, and Southampton Buildings, W.C., London, was established in 1851. The abstract of the fifty-ninth annual balance-sheet (March, 1910) showed —Amount at credit of subscriptions, current, and deposit account, £11,835,052; investments in the English funds and other securities, and cash, £12,209,527; cash at bankers. £1,000,753; permanent guarantee fund, invested in Consols, £300.000; amount of assets in excess of liabilities, £431,475; number of members' current and deposit accounts, 11-2,917.