Late on Thursday afternoon the announcement was made that the
Birkbeck Bank had suspended payment. An official statement was later issued by the directors to the effect that the suspension was due to the depreciation in the market value of securities held by the bank. The directors consider that the deficiency does not exceed 2375,000, against which the society holds guarantees which, it is anticipated, will realize 2300,000. The auditors, however, believe that a sum of 2400,000 should be added to this estimate of the deficiency. It is hoped that the suspension will not last long, and the society is to be reconstructed. Arrangement will probably be made by which creditors will receive an immediate instalment of 10s. in the pound, and it is considered possible that eventually 17s. or even 18s. in the pound may be paid.
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