The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. WEDNESDAY, JULY 26, 1911. THE BIRKBECK BANK.

Stratford Evening Post, Volume XXIX, Issue 131, 26 July 1911, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. WEDNESDAY, JULY 26, 1911. THE BIRKBECK BANK.

The failure of the Birkheck Bank has naturally led to much comment in the English press and to many criticisms of the British Government. The “Times” unburdens itself on the matter as follows:—“During the rule of the present Government Consols have depreciated in value by considerably more than 10 per cent., taking down other securities of similar class with them. Nor can the laud taxation policy of the Government have been other than detrimental to such an institution as the Birkheck Bank. <)no lesson of the collapse of the Birkheck Bank is, that under certain phases of Government even the highest classes of security are not secure.” The “Times” goes on to say that “even its first-class securities have played it false.” The best answer to this misrepresentation, says the London “Star,” “is the fact that for many years the “Morning Leader” City article has pointed out the real trouble of the Birkheck Bank: that its investments appeared in its bal-ance-sheet at cost price, and no assurance was given that their value reached that figure.* So long ago as July, 1899, it was pointed out that the shareholders were still without any information as to the actual market value of their investments, and the report of the independent auditors which that attack compelled heck Bank to call in at last siiowcd that there had been a shrinkage of over a quarter of a million in the value of tiie investments. The hank also admitted the significant fact that it had among its investments stocks to the value of If millions sterling which had no official quotation on the Stock Exchange. The investment of such money in unquoted stocks was a policy which was hound to end badly. When the “Times” has explained why Consols fell from 1 Li to 80 under the Tory regime, it will ho able to make the City believe that, Mr Lloyd-Goorge is responsible for the suspension of the Mirkhcck Bank.” i