FRENCH BANK FAILURE

Otago Daily Times, Issue 18612, 21 July 1922, Page 6

FRENCH BANK FAILURE

SENTENCE ON MANAGER. THTUSB TRARfi IN GAOL. LONDON, July a ri M. Pemotte, general manager of the Banque Indnstrielle de Chine, has been sentenced to three years’ imprisonment and a fine of 3000 francs (£120), for fraud in iaaning bonds, and to three months’ imprisonment for embezzlement in connection with the conversion of taels (Chinese cur- ' rency). The sentences were made concurrent. The intervener was awarded 800,000 frames (at par £32,000) as damages. [The Banque Industrielle de Chine, which was established in 1913 for the purpose of developing French trade with China and flie Far East, on June 30, 1921, suspended payment. The announcement created a disquieting impression, owing to its coinciding with the reopening of the activities in. China of the nuge German DeutscheAriatdaohe Bank. \f Briand’s declaration of the probable establishment of a vast consortium to take over the affairs of the bank roused the fiercest political enmity against the_ Government, and a bitter political fight, similar to the Panama anandal and Dreyfus affair, was feared. On December 26, M. Philippe Berthelot, Secretary-general of the Foreign Ministry, resigned, owing to attacks made upon him in connection with the failure, his brother being one of the high officials of the bank. M.. Berthelot despatched two telegrams in order to assist his brother, but declared that his conscience was olear. The Government reconstruction scheme, to which it was proposed to apply France’s unpaid share of the Chinese Boxer indemnity, was submitted to Parliament, but met with oppoaitkmj