THE BANK OF ENGLAND IRREGULARITIES.

Evening Star, Issue 9531, 31 October 1894, Page 3

THE BANK OF ENGLAND IRREGULARITIES.

liiE ADRIAN HOPE'S AFFAIRS. SERIOUS CHARGES. [From Our Sr-KCUL Correspondent.] London, September 14. The solemn conclave of city magnates known a3 the "general court" of the Bank of England was not allowed to pass yesterday without some sevorcrcfereneesto the late chie.fi cashier's irregularities. Mr Edward Clark proposed that there should be an inquiry into the relations existing between the late cashier and those customers of the bank who complained of his treatment of them, and into the action, of the bank in consequence of those relations. He thought a more astonishing communication was never heard than that made at the last meeting, that tho bank had lost £230,1100 through the irregularities of the chief cashier. He had Heard of losses by forgers ami swindlers, but never heard of such losses in consequence of irregularities by the most trusted officer of the bank. If that officer was so astute that he could injure the bank to that extent, hn was not surprised at the irregularities of which the bank's customers complained, and into which he asked for .an inquiry. If anyone asked the rcasou why city men had lost confidence in the management of the bank to a large extent, he thought it would be found that it was not that the bank had made losses, but because its customers complained of their treatment, and it was into these complaints and their reasonableness that there ought to be an inquiry. He put tho number who had complained at twenty, but he would only refer to three cases in which he had been consulted. A country clergyman complained that his wife's money was invested by Mr May in Chicago Great Western bonds, which stood at the head and front of offending in all the three cases. In the next case a lady, an old customer of the bank, was in the chief cashier's room making inquiries, when Mr May put himself forward and said he was placed there for the purpose of advising the bank's customers, and then be planted her with these Chicago Croat Western bonds to the extent of £7,000. She became suspicious, and asked whether they were thoroughly safe, and he replied that they were as safe as the Bank of England. The next was the riiost important case of all, one in which the bank had become notorious by the action it took. A gentleman, an old customer of the bank, had always entrusted the bank with his securities and to make his investments for him. Up to ISB7 these investments were made with remarkable success. In that year the chief cashier said : " Here are some bonds which which will suit you; Chicago Great Western bonds. You might take 20,000 of them." The gentleman Baid he had no money to invest, and the answer to that was; " Oh, you need not trouble, the bank will pay for them ; you take a note of them." In this way the unfortunate customer was introduced to the worst form of Stock Exchange speculation. Out of that first deal other evils grew, involving £400,000, and his loans upon this rubbish grew to £228,000. But that was not the worst feature ; the bank also claimed an overdraft of £120,000.

The Governor asked for the name of the customer in question, and whether the statement was made upon the authority of the customer.

Mr Clark said no. Ho eventually stated that the name Avas that of Mr Adrian Hope,

The Governor said the bank had come to an arrangement with Mr Hope, who stated the other day that it was not with his assent that this statement was being made, and that he had no wish to have his affairs dragged before the public. Mr Clark went on to say that ho was not Mr Hope's advocate, and that he only wanted inquiry into circumstances which he thought reflected adversely upon the bank. The honor of the bank had by these recent events been seriously and adversely affected, and it could not be set light without inquiry. His proposal wa3 that the proprietors should choose three of themselves and two of the directors to inquire into the relations between the chief cashier and the customers of lhc bank, and also the action of the bank in consequence of these relations, and to prepare a report to be presented to the next meeting. Mr liipga seconded the motion, hoping it would, not. be carried, but hoping the governor would say that such regulations were now in force that such irregularities could not again occur. The Governor said Mr Biggs did not hold sufficient stock in his own name to qualify him to second the motion.

Mr Clark : I leave it entirely in the hands of the meeting. The Chairman, reverting to the arrangement with Mr Adrian Hope, said that gentleman wrote in March hist saying, now that an arranijement had been completed, he wished the directors to know that the "ridieulous stories" circulated about his relations with the bank had caused him considerable annoyance. Mr Hope, though he had complained against Mr May, was satisfied that the arrangement was an equitable one. The only reasons why he (the chairman) should object to the proposed inquiry were that it could not possibly do any good, and because the directors were uob justified in going into the private relations between themselves aud their customers. —(Hear, hear.) Mr Rokeby Price protested against going into the matter at all. He thought any further attack on Mr May, who had suffered punishment enough through his dismissal, was ungenerous. Nor could he assent to the suggestion of Mr Clark that the bank had in any'degrec lost the confidence of the public through what had occurred in the matter.—(Hear, hear.)

The Chairman said that as Mr Clark's resolution had not been seconded it must be declared to have fallen to the ground. On the motion of Mr Jones, a shareholder, a vote of thanks was passed to the chairman and directors ; and the Chairman, in acknowledging the compliment, said he was glad to note that there was no evidence of any want of confidence in the management of the bank.