MAIL NEWS.

Thames Star, Volume X, Issue 3095, 18 January 1879, Page 1

MAIL NEWS.

ANOTHER BASK/FAILURE. The announcement that the old-eitab-Hshed btnkinfi firm of Mwim John and James Fenton, of Rochdale and Hey wood, had suspended payment on Taesday morning caused. considerable surprise. The partners were local gentlemen occupying a high/position, and sereral were justices of the peace and'landed 'proprietors. Tlie bank was established in the' year 1819, by John and James. Fenton, oottoa mana* facturers, at Hooley Bridge, hear Heywood, and the present proprietors are their descendants, the' ihanagiris; partner being Mr John Neild; an efctentiTe stockbroker. . TilL recently the. bank did a considerable business, but' daring the last two years a large number of customers transferred their acconnfg to other institutions; as tho proprietors seemed inclined to make it more of a deposit bank than anything else. Since the Glasgow Bank failure rumours hare been prevalent regarding, the irfltability: ;of a Rochdale bank, and latterly these rumours pointed more particularly to Fenton*s Bank, no doubt owing in a great measure to its ibeiqg well 'knowini that: Mr Nield had carried on one of the largest sharebroking businesses, in the kingdom, and that-all kinds of stock had considerably depreciated in value, during the last two months.- The circular announcing the suspension stated that the step was occasioned on account of persistent withdrawals of depositsVand inability to realise assets; and although: it/ is; .difficult to hazard anything like a conjecture as to the position of a private concern like this, it is considered probable that the direct liabilities to the public cannot be less than £500,000. One trader ,in Bochdale had £30,000 deposited in tHe bank : another £12,600, which, howeter, is said to have been lent; at a: special iratiei of interest. Many other firms are in a similar position in regard to deposits;. The Mitchell Hey Manufacturing ppinpany last yeir had £5000 deposited^ but lately this sum had been somewhat, reduced., .Messrs Fenton were the bankers for the' Ecclesiastical Commissioners in the neighborhood, and it is more than probable that some of the Cburcli funds cannot', be readily made a vai (able. There are 30 building societies in Rochdale, but fortunately they will not be affected by this suspension. There will be some hard, cases of- private parties having large deposits in the bank. At several of the other banks in the town there was a run, but the managers were prepared with a large amount of additional funds, havjng been apprised of the likelihood of the failure beforehand. The run was chiefly made ; by country people, whose accounts were not large. The excitwnent caused; by the stoppage has greatly subsided, and more favorable opinion has taken its place. Among the deposits at-the bank are the proceeds of a | successful bazaar intended to be devoted to hew churches and schools 1. It is feared that several clergymen will be heavy losers by the failure, Mr Nield; tho managing partner, is described as a strong Churchman/'^-Friendly^ Society in the neighborhood is interested to the extent of at least £1,000. Owing to a rumor that one of the banks was in an insecure condition a gentleman withdrew one half of his deposits from' one of those institutions, about ten days ago, and placed in Messrs Fenton's fdt safety. Two or three lawyers had largo amounts belonging'to clients lying in the bank until they' had prepared a final winding-dp of the business entrusted to them, one, it is stated, being involved to the extent of £50,000. .The total claims against the, bank, including the provision for the return of any commercial bills that may be dishonored at maturity, are not expected to exceed £550,000.