ANGOLA BANK CASE.

New Zealand Herald, Volume LXII, Issue 19203, 17 December 1925, Page 11

ANGOLA BANK CASE.

CONTENTION BY DIRECTOR. INFLATION OF PAPER CURRENCY. (Received 9.5 p.m.) g un . LONDON. Dec. 15. The Daily Mail has disclosed surprising developments in tTie Angola Bank case. One of the directors who is under ! arrest asserts that there were no false notes, but that there was ian understanding with Carmacho, I governor of the Bank of Portugal, | who has now resigned, that paper I currency should be inflated in view of the financial crisis in the Portuguese colonies. A cablegram from London on December 10 stated :-'-Newspapers published _in Oporto, Portugal, reveal an astounding swindle involving probably £1,000,000. A bank was established early this year under the. title of the '' Angola and Metropole." Two directors visited Lon- ! don, where they printed immense numl bers of notes in imitation of the Portuguese equivalent of £5. The banknotes were j curried to Portugal in four large trunks, i which the customs authorities did not ! search, inasmuch as the owners were j travelling under false diplomatic pass- | ports, which ensured immunity from | search. The directors widely distribted I the notes in exchange for realisable ; articles, mainly precious jewellery and ' shares. A bank clerk discovered the i swindle. He noticed that the counterfeit | notes bore a comma which was absent j from tho genuine notes. The victims of I the fraud are forming queues at the Bank i of Porti gal clamouring to be reimbursed I for the amount represented by the forged j notes, of which £330,000 worth have 1 already been received and redeemed. The j police arrested several officials and seized i the Angola Bank's safes containing 50,0<X) I valueless notes, as well as genuine notes jto the value of £20,000.