The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1887-12-03 00:00:00

THE WARWICKSHIRE BANK FAILURE.

The public examination of the partnbra in the firm
of Greenways, Smith, and Greenways, the bankrupt
bankers at Warwick and Leamington, was commenced
on Tuesday morning at the Shirehall, Warwick,
before the judge of the county-court (Sir Richard
Harington). The total liabilities are £533,184, of
which £367,445 is on account of the bank estate,
£90,271 on Kelynge Greenways, £59,525 on George
Greenways', and £15,789 on Thomas Greenways'
private estate. The total assets only amount to
£129,230, of which £107,726 is credited to the bank
estate. There were several counsels present, and
the proceedings were of a very tedious character.
Mr. Kolynge Greenways' was first called, and
in the course of an examination which lasted the
whole of the day, said he became a partner in
1855, and in the succeeding year his uncle's executors
withdrew £15,000 or £20,000. He paid into the bank
as capital a portion of his late uncle's money £4500.
In February, 1885, he thought the amount would be
entered in the capital ledger accounts, but if it were
not so entered the money could not have been paid. He
possessed property at Birmingham and Aston, and in
' course of the year it was disposed of, and the proceeds
were laid out on the property aroand HaHoughton
for the purpose of extending and improving it. He
purchased property from time to time, and it was
gradually transferred to the trustees of the entailed
property. His two brotherswere the trustees of the en-
tailed estate. £BOOO of the £22,000 that he received
from his uncle's estate went to pay off burdens on his
father's real estate,and the balance was invested in vari-
ous ways. Mr. Greaves retired from the firm in 1861,
and was paid £25.000, and the capital left in the bank
, then was £14,000. The balance of capital was further
reduced to .£6,226, and his credit balance on the 31st
' of December, 1861, was only £l5 15s. 2d. (Sensation).
He received £lO,OOO immediately bofore the 31st of
December, but he thought the bulk of it was invested.
In 1862 he took his brothers Thomas and George into
partnership, but they introduced no capital, and in
December the gross capital of the bank was
£B9B 16s. 4d., which was subsequently reduced to
£7 17s. 9d. (Sensation.) The capital account in
December, 1875, amounted to £35,571, and on the 12th
of February, 1876, the partners resolved to withdraw
the whole. The account was closed at that time and bad
never been reopened. For 13 years the bank had been
working without one penny capital. In 1882 his
overdraft amounted to £l6 405, in 1884 £36,000, in
1885 £49,000, and in 1887 .£72,000. The debtor was
questioned as to the Kenilworth tenantry business,
and said the loss on that up to the year 1881 was
£85.000, which was subsequently increased in 1882
by £29,000. The debtor was being questioned as to
his private expenditure, when the court rose until
next day.
An indignation procession took place its the even-
ing, and effigies of the Greenways were burnt on
Warwick-common. The streets of Warwick, Milver-
ton, and Leamington were paraded, banners contain-
ing the words used by the debtors at the hut examina-
tion being very conspicuous;