In Liquidation

Bechades Go Under

New Caledonian Smash

THE large trading establishments known as Les Establissements de Bechade (New Caledonia) and Societe de Bechade des Nouvelles Hebrides have been definitely forced into liquidation. As a result, very many planters and traders in New Caledonia and the New Hebrides are in difficulties, and trading conditions generally in those two territories are seriously disturbed.

It was explained in our last issue that the trouble has been caused by drastic uncompromising action by the Bank of Indo-Chine. The bank for years gave liberal credit to the Bechade concerns, and Bechades, in their turn, allowed easy financial terms to individual planters and traders everywhere.

Then came the depression and the bank became alarmed and made a hurried valuation of assets.

There is, of course, a vast difference between the values of plantations in times when produce is being readily disposed of, and in times like the present, when everything is extraordinarily depressed. On that basis. Bechades’ position looked bad, and the bank forthwith demanded that it meet its liabilities. Bechades pointed out that that was impossible; but that the debts due to it were greatly in excess of its liabilities and, if given reasonable latitude, and allowed to carry on over the period of depression, it would meet its obligations.

At this point the other creditors of Bechades became interested particularly about 40 Australian merchants, to whom large sums were due. The whole position was most carefully scrutinised on their behalf by Mr. P.

F. Parkes, of Messrs. W. S. Tait & Co.

Ltd., and they were satisfied that if Bechades were allowed to carry on, they would survive the economic storm and meet all their debts. Strong representations were made along these

lines to the bank. The bank, however, was adamant; and in spite of all the efforts that were made to save the firm, which had been trading honourably and successfully for 40 years, it was compelled to file its schedule.

In addition to its relations with innumerable planters and traders, the Bechade firm owned about 30,000 acres on the north-west coast of New Caledonia, where it produced cattle, coffee, etc. It had a large staff and its collapse will mean the ruin, not only of hundreds of people, but of the members of the Bechade family, whose pri-

vate fortunes are wholly involved in the smash.

According to current report the Bank of Indo-Chine believes that it will recover its full debt from the liquidation. But the opinion of other observers is that the bank will sustain a heavy loss.

Perhaps the wish is father to the thought. If the bank does suffer a loss, it apparently will gather no sympathy in New Caledonia. ———

Pa-fater, the God of Good Gardens. Only four of these images are known to be in existence—the one shown above, which is on Darnley Island, in Torres Straits; one in the Brisbane Museum; while two have disappeared. ———