BANK OF EGYPT.

Taranaki Daily News, Volume LIV, Issue 83, 28 September 1911, Page 5

BANK OF EGYPT.

STOPS PAYMENT. RUN CAUSED BY TRIPOLITAN TROUBLE. By Cable —Press Association—Copyright. Received 27, 10 p.m. London, September 27. The Bank of Egypt, Ltd., has stopped payment. The suspension came as a surprise. It was hitherto regarded as one of the most successful banks in Egypt. The dividend in 1010 was at the rate of 14 per cent. In the last statement £300,000 was transferred from the reserve and used to write down investments to meet contingencies in connection with certain speculative operations. Tlie newspapers state that Luzatto, a '-"hlc personality, has long controlled, the bank. He was a reckless speculator, but is now dead. Luzatto borrowed largely for private speculation. The Board in London was completely in Luzatto's hands.

Lord Milner recently resigned, owing to the bank's unsatisfactory position. The Mahommcdan habit of hoarding gold increased the bank's difficulties, but the immediate cause of the suspension was that the Tripolitan trouble was causing a run.

It is understood that the assets show a surplus in hand.

The London market hold a million and a half of the Bank of Egypt's acceptances. The liquidator will arrange for their speedy reimbursement. Substantial people are already preparing to guarantee to that end.