BIRKBECK BANK RUN.

Gisborne Times, Volume XXIX, Issue 3242, 12 June 1911, Page 5

BIRKBECK BANK RUN.

DEPOSITORS BESIEGING

BUILDING.

BROKERS TO THE RESCUE,

[UNITED PRESS ASSOCIATION —COPYRIGHT.] LONDON, June 9.

The Birkbeck Building Society, wherewith the Birkbeck Bank was associated, issued the statement cabled yesterday. It was therein stated that the ordinary depreciation of securities held by the Bank, including gilt-edged securities, represents a sum which uoes not warrant the continuance of the Society’s banking business without reconstruction. An official, interviewed, said that be anticipated the creditors would rei-c-ive 17s or 18s in the pound. He added that the run on the Bank in November last had led to the withdrawal, of £3,00,000, whereof little was returned. An immense crowd of depositors besieged the building until late at night. The last balance-sheet - showed that the depositors number 93,000, and the shareholders 19,666. Current accounts aggregate £2.034,784. The deposits total £5,449,2.59. The deposit receipts total £250,281. It is understood that the recent selling of consols emanated from the Birkbeck Bank, and the unfavorable position of the institution is attributed largely to investments in real estate and house property. Speculators are offering the depositors of the Birkbeck Bank 16s in the- pound. One speculator in possession of £-5000 in banknotes is doing business with a queque of anxious depositors. Many leading brokers are assisting the Birkbeck Bank.

ASSISTANCE FROM OTHER BANKS (Received June 11, 5.5 p.rn.) LONDON., June 10.

A number of banks have offered to pay half the Birkbeck Bank’s current and deposit accounts. RELIEF FROM BANK OF ENGLAND. (Received June 12, 12.25 a.m.) LONDON, June 11.

The Bank of England has advanced the necessary monies to the Birkbeou Bank, which re-opens to-morrow. It will pay ten shillings in the pound.