The Failure of the cape Town Bank.
A cable message announces the .suspension of the Cape of Goad Hope Bank (Limited), a concern of no, very large pro^ portions. The suspension has no doubt resulted from that of the Union Bank of Cape Town, which occurred atithe close of July, The disaster which occurred to the Union Bank of Cape Town was! brought: about m an extraordinary] manner. The bank, owing to the negligence .and .imprudence of its "directors,^ and the" "madness "of 1 the manager (&<:-; i cording to his own admission) had placed! twp^thirds of its resources ati the dispoca! ,of brie of its customers, Mr Lippert, partly by advances against mining scrip (most ofjwMcli ultimately became, worthless), and 'partly by endorsement? of paper to two pther,banks—viz.,/the Standard Bank of South Africa, and the Gape of GtoodHope: "Bank. Mr, Lippert, who had gone to London, had relations with another Sdtith "A frican merchant,^ Mr Best, of London %n&- Kimberley, and put paper hrtolcirculation through the- Union Baiik of Ci»pe Town, purporting, to be drawn by Mr Best, per his manager at Kimberley. Th c manager, at Kimberley suddenly surprised the directors of* the bank by informing them^ at the rpojitst by, cable of. Ms principal m London, that his signature to the bills wast a forgery,,and that';Mr Lippert admitted,the ; forgery, to the amount of £151,0001 But here comes,the curious part of the affair. On obtaining counsel's advice, the directors of the Union ; Bank of Capetown wera led to decline to admi^ the \ forgery,, and the AttorneyGeneral of Cape Colony decided 1 to take proceedings. In the meantime the Union ij?ank of Capetown stands to lose £500,000 ; it owes the public £765,000; jibs paid-up capital is £36,880. Unfortunately for the shareholders their liability is unlimited, and they me ruined, and even at that they are unable to pay creditors m full. The lock-up of ifundf) ,111 the endorsements referred to, together with the curious questions arising out of alleged iorgery—admitted ;by the alleged forger, hut not admitted by the directors of tho Union Bank—has doubtless proved too much for the Cape of Good Hope Bank. " Possibly, also, it has had its own experiences of South African mining speculators and their scrip.
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The Failure of the cape Town Bank., Ashburton Guardian, Volume VII, Issue 2544, 15 October 1890
The Failure of the cape Town Bank. Ashburton Guardian, Volume VII, Issue 2544, 15 October 1890
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