THE PERSONAL LOANS SCHEME
Nicholas ,--There is much contentious material in Mr. 'cholas Davenport's article entitled 'The Bankers and the Equity Boom' in the Spectator of February . I will confine myself to his reference to a Passage in Lord Monckton's recent statement to shareholders of this Bank and to his (Mr. Dawn- ?Mt's) 'guess' that 'nearly a half [of the Personal 'leans granted by the Bank] went into the. Stock Exchange Lord Monckton, in his latest statement, said in reference to Personal Loans: 'The number of loans current is well over three times as large as a year ago. The great 'Wilk of the total has en taken for we purchase of cars and to pay for fuberniture, fittings 4nd equipment, house repairs, decorations and irn- Provements.' A year earlier he had said that an been of the purposes for which the loans have veen taken shows that over one-third of them by number, and over one-half by amount, have been for the purchase of motor vehicles. The other major elements in the demand are for furniture, fittings or equiPmeni, and for repairs, decorations or improve- Ment of premises.' Publicity material concerning the Personal Loans
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Aherne lists the purposes for which these loans are among the purchase of stocks and shares is not them. Indeed, as a matter of policy the .Purchase of securities is definitely precluded from 'bac Purposes for which Personal Loans are granted Y the Midland Bank. A.„.rvir. Davenport may not have appreciated the "terence between Personal Loans and bank accom- rrindation to personal customers by conventional overdraft or loan. Here too, however, hp overlooked a relevant passage in Lord Monckton's latest state- "nt, which reads: 'The provision of finance for Purposes of speculation is still frowned upon, and in oetorda lice with our long-standing principles of Peration we have been watchful to avoid making credit available in this direction:—Yours faithfully, H. 1. WITHERIDGE
Public Relations Officer
Alialund Bank Limited, Poultry, EC2 uldl Davenport writes : `Mr. Witheridge not have read my article on February 12, which the following : "When borrowers can get the huonks to pay for their motor-cars and houses and st repairs and equipment they free their funds for °el( Exchange purposes." 1 am sure that Lord Monckton is not so naive as to imagine that money is kept in tight compartments when it leaves his bank for our pockets.'—Editor, Spectator.]
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