A BANK’S CREDIT

Greymouth Evening Star, 4 January 1938, Page 10

A BANK’S CREDIT

ONCE DOWN TO 11/7References to a bank which at one period was only 11/7 in credit were made at the Mansion House recently, says the “Daily Telegraph and Morning Post." William Abraham Dreyfus, 53, managing-director of the Federal Industrial Development Bank, of Mincing Lane. E-C-, lived in Kensington, Pleaded guilty to obtaining £lO4 by false pretences and with intent, to defraud. He was sentenced to six months’ imprisonment. Mr Vincent Evans, prosecuting, said the bank was incorporated in 1933 with a nominal capital of £lOO, later increased to a share capital of £25,000. In 1935 it lost £2217. in 1936 £330. and in 1937 £B2B.

Coming to the charge before the Court, Mr Evans said that .a Mr Joseph Albert Edward Record was introduced to Dreyfus last October and opened an account- When he had a credit balance of over £7O two cheques were' returned' unpaid- Mr Record had paid in £lO4/2/4 and had withdrawn £3l/2/10.

The Federal Bank had an account with Barclays Bank. The day before Mr Record opened his account the bank was only £4/12/1 in credit, and earlier in November it was only 7 11/7 in credit.

Detective-Inspector Ernest Glasspool stated that Dreyfus was a naturalised British subject of Swiss origin. The customers of the bank included undoubted sharepushers and very few genuine people banked with it. He added;

“One transaction of about £150,000 which has gone through this bank concerned cases now before, this Court- Some of the persons who were connected with the bank have been convicted of - share-pushing/' 1 Mr Stone, defending, suggested that Dreyfus was a pawn in the hands of unscruplous people. He belonged to a banking family well known in Europe, and they were prepared to make restitution.

The Lord Mayor. Sir Harry Twyiord: “I have no dou,bt this bank was started by a clique of share-pushers and that this man was perfectly willing to do what he was told’.”