BANK OF EGYPT

Wairarapa Age, Volume XXXII, Issue 10435, 28 September 1911, Page 5

BANK OF EGYPT

SUSPENDSPAYMENT SURPRISE IN LONDON.

(Received Last Night, 9.45 o'clock.)

LONDON, September 27. - The suspension of payment by the Bank of Egypt has come as a great "surprise. ' Hitherto tike Bank has been, regarded as one of the moat successful in Egypt. The dividend declared in 1910 was 14 per, cent. In the last statement, a sum of ;£300,000 was transferred from the re--seare, to write down .investments and meet contingencies in connection with "certain speculative operations. ; The newspapers state that Mr Luzatto, a remarkable personality who long controlled the Bank, and was a reckless speculator, is now 'dead. Luzatto borrowed largely for private speculations. The Board in London was completely in Luzatfco's 'hands. • Lord Milner recently resigned from "the Board of Directors, owing to .the Bank's unsatisfactory position. ■' The Mohammedan habit of hoarding isheir gold increased (the Bank's diffiftttolties; but the . imnlediate cause of was the' disturbed state of ■affairs in Tropoli causing a run. " the ■ assets surplus in,hand. './ ' i • The London market hold £1,500,000 '•worth of fßank.-of Egypt acceptances. *■ *'£ : fiqmdator, will arrange for tbeir re-imbursement.. , 'Substantial people are aftr-jady pie•."pardng a guarantee to that end. ,