PAYMENT STOPPED

Otago Witness, Issue 3003, 4 October 1911, Page 33

PAYMENT STOPPED

THE BANK OF EGYPT. LONDON; September 26. The Bank of Egypt (Ltd.) has stopped payment. September 27. The suspension of payment by the Bank Of Egypt came as a surprise, as hitherto it had been one of the most successful in Egypt. The dividend in 1910 was 14 per cent. In the last statement the bank transferred' £300,000 from the reserve fund to write down investments and to meet contingencies in connection with certain speculative operations. The newspapers state that Mr Luzatto, a remarkable personality, who long controlled the bank, was a reckless speculator. Be is now dead. Luzatto borrowed largely for private speculation. The board in London was completely in Luzatto's hands. Lord Milner recently resigned owing to the bank's unsatisfactory position. The Mohammedan habit of hoarding gold increased the bank's difficulties, but the immediate cause of the suspension -was the situation in Tripoli causing a run. It is understood that the assets show a surplus in hand. The London market holds £1,500,000 worth of the Bank of Egypt's acceptances, but the liquidator will arrange for their speedy reimbursement. Substantial people are already preparing to guarantee to that end.