HATRY GROUP CRASH

Otago Daily Times, Issue 20930, 21 January 1930, Page 9

HATRY GROUP CRASH

FUND FOR RECOUPING LOSSES. ATTITUDE OF THE BANKS, (United Press Association.) (Bj Electric Telegraph—Copyright.) LONDON, January IS. The Stock Exchange announcement of the formation of a £1,000,000 pool, from which the holders of worthless Hatry securities may largely be recouped, has been received with acclamation by the public, who see in this proposal only the brokers’ magnanimous action in shouldering responsibilities not technically theirs. The brokers are, however, not so enthusiastic, and many are vigorously protesting that banks should be asked to contribute, since it is largely the “bankers’ folly” which enabled the crash to reach such proportions. Whether or not such judgment is justified, it is certain that the prestige of the banks is affected by the fact that several most ill-advised advances were ■made to the Hatry group without adequate investigation. The present temper of the city is markedly against the banks, which are regarded as exhibiting a tendency to adopt a more shortsighted policy than it is believed the present circumstances necessitate. The question of the banks’ attitude .towards industry is likely to loom largely in the near future. Even the Economist, which usually is a most cautious publication, roundly declares: “The British banks have something to answer for. They do not have highly organised industrial departments comparable with those of European banks, and one of the tasks that must be faced, if the city is to take an active interest in industry, is to find the necessary personnel for the development of the necessary technique.”