The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1892-06-10
A srUPENDOUs FAILrRE.
The New Oriental Bank OF London Closes
It's Doors,

Tho New Oriental Bank OF London Closes
It's Doors.
LONDON, juno 9.-The directors of
the New Oriental Bank decided yester-
day evening to suspend. The announce
ment caused great sensation in flnan-
cial circles, and especially among
traders and brokers interested in the
East. The liabilities will amount to
several millions of pounds.
Tho New Oriental Bank Corporation,
Limited, Robert Turner Rhode, man
ager, has capital of two million pounds.
The bank has been reducing expenses
for some time
The whole trade in tho East is bad,
although silver has gone up five. eighths
within two days, with good demand
on Indian account. The office of the
New Oriental Bank is at 40 Thread
needle street, E. c., near the Bank of
England.
The bank made application to the
Bank of England for assistance to tide
it over its troubles, but met with re-
fusal.
A circular issued by the directors
gives the liabilities as $3.50, 600 and
the uncalled capital as 5000, OO0 The di-
rectors recommend the depositors to
Withdraw only 90 per cent of their de-
posts in order to allow of the SUCCESS
full reconstruction of the bank.
The suspension is largely due to the
depreciation in the value of silver, to
the consequent increasing distrust in
Great britain of investments in silver
countries and to the withdrawal Of CAPT.
tai In the East, coupled with the unpre-
cedented condition of trade in China,
Japan and australia and losses incurred
through the hurricane at Mauritius
The report concludes with the statement
that steps will be taken 20 protect the
assets of the bank The immediate liza
bilites are believed to amount to about
$500, 600.
The bank has branches at Alden, An
tanauarivo, Badulla, Bombay, Cal
cutta, Colombo, Hong Kong, Jaffa,
handy. Hiogo. Madras, Maize, Mauri-
thus, Melbourne, Newera, Ella, New
York, Paris, San Francisco, Shanghai,
Singapore, Sydney, Tamatave, Yoko-
hama and Zanzibar. 1t also has
branches at Edinburgh and Dundee.
The Melbourne (Victoria) and Sidney
New South Wales) branches of the
New Oriental Bank have suspended
The announcement of the suspension
caused no panic in those two cities
Deposits in the two branches amount
to e57 1000,
Tho effect of the suspension of the
new Oriental Bank is in no way com.
parable with the crash Of the Barring
Brothers & Co. The suspension had
been, to large extent, discounted, but
notwithstanding this it has exercised a
depressing influence on the markets
generally and is causing discussion
regarding the depreciation in the value
of silver and the position OF other East
ern houses.
Shares of the Indian and Chinese
bank fell one to two points. Ten pound
shares of New Oriental Bank wore
largely offered Tuesday at three pounds.
The insurance rate on the deposits es-
terday was five per cent. Depositors
will probably only suffer from the de.
lay and will eventually obtain their de-
posits in full. The prospects for the
shareholders. however, are doubtful.
The Pail Mall Gazette this afternoon
says that there is feeling of anxiety
but not of alarm in the city growing out
OF the suspension of the new Oriental
Bank. Regarding the stability ofother
Eastern concerns, the Pail Mall Gazette
says that while all have felt the de-
preston of trade in the East they have
not been handicapped with burdens as
was the new Oriental Bank, against
which concern the criticisms of rash
banking methods have been heard, such
as paying high interest on heavy depos-
its, etc.