FAILURE OF A ROCHDALE BANK.

New Zealand Herald, Volume XVI, Issue 5358, 18 January 1879, Page 7

FAILURE OF A ROCHDALE BANK.

ESTIMATED LIABILITIES, £500,000. The announcement that the old-established banking firm of Messrs. John and James Fenton, of Rochdale and Heywood, had suspended payment on November 2S, caused considerable surprise. The partners were local gentlemen occupying a high position, and several were justices of tho peace and landed proprietors. The bank was established in the year ISI9 by John and James Fenton, cotton manufactors at Hooley Bridge, near Heywood; and the present proprietors are their descendants—the managing partner being Mr. Jonathan 2\eild, an extensive stockbroker. Till recently the bank did a considerable business, but daring the last two years a largo amount of business was transferred through accounts to other institutions, as the proprietors seemed inclined to make it more of a deposit bank than anythingelse. Since the Glasgow Bank failure rumours have been prevalent regarding tho stability of a Rochdale bank, and latterly these rumours pointed more particularly to Fenton's bank, no doubt owing in a great measure to its being well known that Mr. Neild had carried on one of the largest sharebroking business in the kingdom, and that all kinds of stock had considerably depreciated in value during the last two months. The circulars announcing the suspension stated that the step was occasioned on account of preaistent withdrawals of deposits, anij 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 tho public cannot bo less than £500,000. One tradei in Rochdale had £30,000 deposited in the bank ; another £12,000, which, however, is said to have been let at a special rate of interest; and many other firms are in a similar position in regard to deposits locked up.