IMPORTANT BANK FAILS

Taranaki Daily News, 13 December 1930, Page 7

IMPORTANT BANK FAILS

LARGE U.S.A. INSTITUTION

LIABILITIES FIFTY MILLION

FAILURE OF MERGER PLAN

OTHER BANKS OFFER AID

By Telegraph—Press Assn. —Copyright. New York, Dec. 11.

The largest bank failure anywhere iff the country since last year’s Wall Street crash occurred to-day with the announcement of the suspension of the Bank of the United States.

It is not a Federal bank, having only a State charter. Its gross liabilities are approximately £50,000,000, of which £40,400,000 are to depositors. The bank has 50 branches and is one of the most important banks in New York.

For come time efforts have been mhde to amalgamate the bank with the Manufacturers’ Trust and the Piiblic National and International Trust in a ,billion dollar merger, but all the negotiations failed. It is now'indicated that the other institutions are unable to undertake assumption of tflie bank’s large liabilities. ' . . The clearance house of the banks of New York to-day published a large advertisement offering their aid in the form of loans to the extent of 50 per cent, of. the' net claims of depositors. The stock market reacted diily moderately to the news, though' many . issues fell to new low levels., The losses, however, were small for the morning. It is believed that Wall Street traders have been receiving of the condition pf the bank and have already discounted to-day’s developments.