The Dorset County Express and Agricultural Gazette.
Dorchester, Dorset, England, 1858-03-30 00:00:00

BLANDFORD.

BANKING.

The excitement of the public mind, consequent
upon the recent failure here, having somewhat sub-
sided, a cool and dispassionate inquiry into the sub-
ject of banking in general is beginning to occupy, in
a marked manner, the minds of persons in this neigh-
bourhood. The security afforded to the public by
Joint Stock Banks compared with that given by
private banks is more or leas the general topic of
conversation. It is, no doubt, true that the system
of banking carried out by private banks 50 years
since fully met the monetary requirements of com-
merce at that time. The home trade of this country
was then considered of greater importance than its
export, and the tradesman having to contend less
with competition than he has now, derived that
profit from the employment of his bond fide capital
which gave to him a sufficiency of income to sustain
his social position. Since then, however, commercial
enterprise has made gigantic strides, and the laws of
this country have so unfettered its action that our
foreign trade relations, as a consequence, have been
extended, and markets for the employment of capital
been opened up to us calling for a corresponding in-
crease in our monetary supplies, and leas dependence
on the limits of bond fide capital. This trade ex-
pansion and necessary demand for increased supplies
of capital have not alone affected the external trade
relations of this country, but they have absolutely
changed the monetary aspects of our internal or
home trade transactions. Wholesale trade is not
now conducted as it once was by Messrs. A, B, and
C as partners; but we have companies formed of
numerous individuals, registered in accordance with
the Limited Liability Act. Retail trade is charac-
terized by a growing tendency to extend its opera-
tions, and substitute for excessive profits large
returns and lessened profits. This change has ex-
tended itself from the greater to the smaller towns;
and though there must necessarily be a more circum-
scribed range for its development in the latter than
in the former, yet its influence is felt, and, as time
advances, and intercourse between large and small
towns is facilitated by railway communication, that
influence must become still more potent. These
considerations lead us to conclude that the neces-
sarily limited capital of private banks, especially
those existing in small country towns, must event-
ually fail in supplying that monetary accom-
modation in their particular spheres of operation
which trade enterprise now demands. If we are right
in our conclusion, then it becomes a very important
consideration, how far Joint Stock Banks are fitted
by the resources of their capital and the expansive
tendency of their governing policy, wholly to super-
sede the limited advantages afforded by private
banks. Looking at the first introduction and past
history of Joint Stock Banks, the expansiveness of
their machinery, the tendency of the commercial
community to engage in and approve of combinations
of capital to effect great undertakings, it would
seem but reasonable to suppose that such a system of
banking is well fitted to meet an expansive trade
and the legitimate monetary requirements of this
and future times.

The feeling of security, however, offered by Joint
Stock Banks to the public in their present worming
may, in our opinion, be easily rendered still stronger
than it is now. When they were originally estab-
lished it was calculated, however, as an essential
feature of their future success and stability, that the
shareholders would, by personally attending the
meetings called to receive and consider balance
sheets, exercise a scrutiny, corrective of any errors
or faults of mismanagement committed by directors
of Joint Stock Banking Companies. This the share.
holders too frequently fail to do, and as auditors
chosen by them are rarely appointed, the depositors,
shareholders, and public at large, do not
perhaps feel that complete confidence in Joint
Stook Banks which they would do if so essen-
tial a feature of their original design were
practically carried out. Still, when it is con.
sidered that the entire pecuniary means of the share-
holders is legally liable to meet any deficit that may
accrue in the event of insolvency, arising from fraud
or any other cause, we cannot but think that the
security afforded the public by Joint Stook Banks is
greater than that given by private ones. It was
satisfactorily proved that Oak and Snow were insol-
vent from the oommenoement of their partnership,
and it is even believed by the public that the bank
was not in a solvent condition some time previous
to that partnership. Even, supposing insolvency to
have commenced with Oak and Snow, it would have
been impossible for a Joint • Stook Bank, placed in
similar circumstances, to have prevented a disclosure
of its pecuniary difficulties for 10 years, and to have
been affected so little by a diminution of public
confidence as was the bank conducted by Mears.
Oak and Snow. The number of persons employed
at the head office and at the various branches in the
management if a Joint Stook Bank, and the know.
ledge they must necessarily possess of it. financial
state, oombined with the changes constantly taking
plus by removals and death, would render it highly
Improbable, if not impossible, to hide from the
public the real state of such a bank for so long a
period. A private bank is far differently oir.
cumstanoed, and the foot of its solvent or insolvent
condition must be committed to the keeping of
one or two individuals alone; and though there are
many private banks in this country justly deserving
the confidence of the public from the respect
and credit attaching to the individuals who
conduct them, yet we cannot but think that the
comparative irresponsibility characterizing the man-
agement of private banks, must and will place
them much lower • in public confidence than (stab.
lishmenta conducted on an opposite system of
management.
It is confidently rumoured that the legal represen-
tatives of Oak and Snow have determined on not
further opposing the proposed appointment of Mr.
Provis and Mr. M. Fisher as trade assignees. Mr.
Welch, solicitor, of Poole, will, in all probability,
work the bankruptcy commission. It is also
rumoured that Oak and Snow's friends have been
engaged in sounding some of the creditors as to the
possibility of some arrangement being made to super-
sede the bankruptcy; but this movement, we are
assured, has signally failed, and the attempt is not
likely to be renewed. —Correepowieui.

SAVINGS BANC—The treasurership of this excel-
lent institution having become vacant by the bank-
ruptcy of Mr. Oak, the trustees and managers held a
meeting on Tuesday last, and appointed the Wilts
and Dorset Banking Company treasurers.

- - -
FRADULENT BANKERS. —" A correspondent," rays
the Timee, 'who cordially agrees in the necessity
for a criminal inquiry regarding the Western Bank
of Scotland, asks upon what principle the North-
umberland and Durham District Bank, the Eastern
Corporation, and the North of Europe Steam Com-
pany should be exempted from a similar process.
Obvionsly.if no steps are taken to mete to other esta-
blishments the justice that was considered fit in the
case of the Royal British Bank, the conclusion will
be warranted that, 'wording to the opinion of par-

diament aid` the nation., the venation in that instance
ought never to' liieve been inflicted,
that perten immunity should be ploetaini as
regarda all such iddliers for the future.
atot
OVERSEERS.—Mr. Henly Echniffida, glover, and
Mr. Daniel Oreatbatch, cabinet, totker, baVe been
is desirable
appointed overseers of this parish tot the ensuing
year.
14(rW WOBICHOESE. This building being no*
completed, she paupers have taken possession
the old union bongo at the bottom of East-street is,
we understand, for sale.
Cout.ifir Pcrticg.—A piece of land belonging to
; an.a
Mr. Davis on the Pimperne road has, we are in-
formed, been determined oh as the site for the new
police station. It ie rottab to be regretted that a
suitable place could not be obtained somewhere
within the town, so that an officer might be within
reach in case of need.
TOWN Cocacit.—Mr. J. S. Daniell; surgeon, ink
been elected Mayor of this borough till November, in
the room of Mr.. tab, bankrupt.
WORKING MEN'S SociitV.—On Monday evening
week, the Rev. Benjamin Oral, minister of the
Independant chapel, gave a most intefenting Tech=
on "Dr. Livingstone's missionary travels and re-
marches in South Africa." The attendunce free te..-
markably good, the room was literally crammed,
Mr. Gray illustrated his lecture by means of a map
of Africa, and twelve coloured diagrams from the
Working Men's Educational Union. He held up
Dr. Livingstone as a pattern to working men, and
especially to the younger portion of the audience, oh-
' serving that he was eent at the age of 10 as a
".piereer " into cotton mill, that his small earnings
might aid towards the family expenses. With his
first week's wages, ho*ever lie pdrchased a work on
the rudiments of Latin ; and at an evening school
between the hours of 8 and 10, he pursued Ids love
of knowledge. His mother often found him sitting
up till 12 o'clock, though he had to be at the mill
again at six. Working fourteen hours a day did
not restrain his desire for study. He read Virgil
and Horace, and various works of science and
travels. His father wished to we him perusing
religious works instead of these, and chastised him
for refusing to read " Wilberforce's Practical Chris-
' tianity." Until his nineteenth year David Living-
' stone laboured at ciotton spinning. Often did he
place his book on the jenny, and glanced at it as he
passed
and repassed, thus oorttinuing his studies
undisturbed by the roar of the machinery." His
untiring perseverance and noble chrietian courage
during his subsequent career, were ably portrayed by
the lecturer. The chairman, W. C. Fincham,
at the close of the lecture, presented him with a vote
of thanks.
PETTY SESSIONS, Saturday.—Present Lord Portman,
W. P. Okeden Esq., and the Rev, John Watts.
David Morgan, a hawker, was eaminoned by the
polioe for firing off a pistol in the highway opposite
Spettisbury Church, on Sunday morning Meek, during
divine service. It appeared that Morgan wee returning
from the Spettisbury Catholic Chapel with several
others, and on passing the church fired the pistol. Otte
of the churchwardens and a policeman, who happened
to be at church, went oat and found him reloading it.
He pleaded guilty, and expressed his contrition, and the
magistrates fined him 103. including costs.
Rose Gallop and Susan Barris were summoned by Mr.
H. F. Fisher for damaging a hedge. Pleaded guilty,
and fined 41. 44. each, including costs.
Mr. Richard Brine, of Tarrant farm, was summoned
by the toll keeper at Crawford Bridge gate, for refusing
to pay toll for a wagon laden with wood on the ground
of its being agricultural produce. After the suinmons
was taken out Mr. Brine having omasionto pass through
the gate on horseback gave the gate keeper the shilling
for the disputed toll with the toll for the horse he was
riding, thinking thus to evade the expenses, but the
magistrates fined him 143. including costs.