BANK FAILURE.

Taranaki Daily News, 23 December 1920, Page 5

BANK FAILURE.

]*• MILLIONS DEFICIT. THE POOR SUFFER. By Teieernph.—Press Assu.—Copyrljjllt. London, Dec. 21. The Times city editor confirms the statement that Farrow's failure wits not due to the financial stringency and that it is quite unimportant from'the banking viewpoint. The liabilities are 4 1 /, millions. The failure is authoritative, ly stated to be an isolated affair and the general banking position is thoroughly sound. The Di-.ily Evpress declares that it cannot be too strongly emphasised that tho position of all the lending banks is thoroughly satisfactory. The Daily News says the chief sufferers are the humblest of the new poor. There were many pitiful scenes : among the crowd of depositors which gathered in the vicinity of the head I office. Farrow is ill and police are guarding him at his residence at Hastings. Crotch, a director has also been arrested, and charged at the. Mansion House along witli Hart with having circulated a false balance-sheet and eonspiring with Farrow to induce persons to advance money. Counsel for the Public Prosecutor said that the bank was hopelessly insolvent. There had been a heavy annual loss in trading for the last nine years, amounting in the aggregate to upwards of a million, yet the accounts were manipulated to show a heavy profit. The failure was due to unsound methods of finance and reckless trading which must have resulted badly at any period and in any conditions. Accused were remanded for three weeks. Bail was allowed, Crotch io £40,000 and Hart in £20,000.