National Commercial and Savings Bank Affected Faost Our Own Comesronnexr Hongkong, Sept. 5. Due to the close of the Bank of Canton yesterday the National Commercial & Savings Bank, Lid, experienced a heavy "run" this morn. Ing when a large crowd of nervous depositors gathered in the Bank with the sole purpose of drawing out part of their money as a precaution against more bank failures.
In order to cope with the run the bank is paying 20 per cent. of the deposits, and after ten days only 10 per cent, will be allowed. The pres+ fent assets of the bank amount to '$10,000,000, the deposits to $5,000,000. Tt is further stated that each withdrawal shall take place at intervals of every ten days. Moreover, depositors are only allowed to withdraw one-fifth of their total deposits.
In an interview with a representa: tive of the press, Mr. Mann K. Wong, secretary of the bank, stated that the "run" is still going on and that depositors are withdrawing large quanti Hes. At present the exact amount: that has been paid out could not be ascertained, he declared. Continuing, he said that the bank is in a sound Gnoneial position and he expects that the present run would be over in a few days.
Heavy Losses on Exchange The cause of the failure of the Bank of Canton is not definitely known yet. It is generally believed, however, that the bank sustained heavy losses on foreign exchange during the last few months Tt was established in 1912, and has branches at Canton, Taishan, Shang: nal, Hankow, Bangkok, and San Francisco. Tt has a capital of $11,000,000, of which $8,055,000 is paid up, and claims total resources of well' over $32,000,000.
During the World War the business of the bank was at its zenith, and handsome dividends were paid out to shareholders. Some years ago the bank went through several financial crises.
It is learned that the Canton branch Jot the Bank also suspended business today.
Text read from the printed page and cleaned; old type leaves the occasional error.