Gravely Disturbed

Commerce in New Caledonia Indo-Chine Bank and Bechades

THE introduction of a new banking policy in New Caledonia has very seriously disturbed commercial conditions in the big French colony; and it looks as if several Australian firms will be hard hit.

For very many years most of the banking business of New Caldonia has been in the hands of the Bank of Indo- Chine, and this institution gave easy and generous accommodation to its clients. As a result, the big merchants allowed almost unlimited credit to the planters, and producers generally.

A few months ago, certain officials came out from Bank headquarters. A survey of the position was made; and the fiat was issued —all overdrafts must be substantially reduced. In view of the conditions that had obtained, the difficulty of quickly readjusting the position can be realised, and there were many appeals for “more time.” The Bank, however, was adamant, with the result that some of the trading firms were soon in grave difficulties.

One of the largest firms got assist ance from France, and appears to have survived the storm. A second—known generally as “Bechade’s”—appears to have been forced into liquidation. Its liabilities are in the neighbourhood of £250,000, but its assets are substantial.

There are really two Bechade firms — the parent company, Les Establissements de Bechade (New Caladonia), and Societe de Bechade des Nouvelles Hebrides. The trading position of the New Caledonia concern was strong, but it had guaranteed the overdraft of the New Hebrides concern, and this is what brought it into difficulties.

The directors of Bechade insisted that if they were given reasonable latitude they could meet all their liabilities.

The Australian creditors—mostly Sydney merchants—were quite prepared to allow the firm to carry on. But the Bank refused any further assistance, and took legal action to force the firm into liquidation.

The Australian creditors held a meeting and decided to send Mr. P. F Parkes (one of the directors of Messrs.

W. S. Tait & Co. Ltd.) to Noumea and Vila to ascertain the exact position and take whatever steps were necessary to protect their interests. .