The Benefit Penny Bank, 17 Bloomsbury Street, which was alleged
to have a guarantee fund of 220,000, fully subscribed, and exclusively applicable for the protection of depositors, has been the subject of a sort of riot this week, in consequence of the failure of the depositors to recover their deposits, when they went to demand them. It was stated that the Penny Bank had transferred its deposits to the City and Provincial Bank, and a circular was issued by the former bank, stating that as all the depositors had applied at once, and as their balance was only recoverable by weekly instalments, the depositors could only be paid in the same way. The depositors, who had counted en the £20,000 guarantee fund, and who did not like the pro- spect of repayment by weekly instalments, invaded the empty Lank on Wednesday and wrecked it,—a somewhat useless dis- play of wrath. But it seems certain that if Penny Banks stop payment, there will be a good deal less patience and long-suffering amongst their creditors than there has usually been amongst creditors of Banks of a higher class. A really popular constituency would be very much inclined to inflict capital punishment for the defalcations of those who make away with their property, instead of such comparatively mild measures as our Bankruptcy law authorises.
Previous page
