BANK OF EGYPT.

Press, Volume LXVII, Issue 14160, 28 September 1911, Page 7

BANK OF EGYPT.

I PAYMENT SUSPENDED. ! I A RESULT OF THE TRirOL-HAN QUARREL. i l'n:tcd Pre.'s As'oriat-cn-F.v i Tcic^raph—Copyright. ; LONDON. S-prembcr 20. Tho Bank of Egypt has suspended payment. (R*coisvd September 27th. 0.1-5 p.m.) LONDON, .September 27. Tho suspension of payment- by tho Bank oi Egypt vanio as a, surprise. Hitherto it has boon one ot the most ;.ucce.<«fii! banks in Egypt, paying a ■■dividend in 1010 of 1J per centum. In the last statement the Bank transferred £'300.0 CX.) liv!<! tho K'sorve to write down investments and meet contingencies in connection with certain specu- . lativ."* operations. i NV'.i:;-apors state that oil'- Luzatto, a man of remarkable personality, who ■ had long controlled the bank, was a 'lecklcss speculator. He is now dead. Luzatto borrowed largely for private ; speculation, and Tie Board of Directors in London was completely in his hands. Lord Miner recently resigned from tin: Board, owing to the bank's unsatisfactory position. ; TLe Mohammedan habit ot hoarding ■ gold increased tho bank's difficulties, but tho immediate cause of suspension w.i.- tho quarrel regarding Tripoli causj ing a run.

It is understood that, the assets show a surplus in hand. The London markot holds £1.500,000 of the Bank of Egypt's acceptances. A liquidator will arrange for their epeody reimbursement. Substantial people are already preparing to guarantee the holders to that end.