The Dorset County Express and Agricultural Gazette.
Dorchester, Dorset, England, 1858-02-23 00:00:00

BLANDFORD.
THE FAILURES AT BLANDFORD.

The failure of Messrs. Barnes and Son and the
suspension of Messrs. Oak and Snow's bank, are two
commercial disasters which have followed so quickly
on each other, and involve such important conse-
quences to this locality that, it will be reaeonably
supposed, not only are trade and monetary relations
sadly upset, but that there exists in the public mind
much painful and anxious excitement. Great confi-
dence was entertained by the public, not only in the
business habits and strict integrity characterizing the
past conduct of the proprietors of the two establish-
ments, but a like confidence was felt as to the secu-
rity and stability of the businesses they conducted;
therefore, it will be readily conceived, that with
such considerations active in the public mind, lavish,
and we fear unsecured, pecuniary means have been
placed in their hands. The following facts will fully
prove the existence of the all but fabulous public
credit enjoyed by the two firms:—
It is an invariable rule to pay in cash for wool
previous to its removal from the premises of the
vendor; yet many of Messrs. Barnes' creditors are
claimants for debts contracted for wool sold, some of
whom are the holders of bills which they have re-
newed with unshaken confidence. One gentleman
at a meeting of the creditors expressed himself as
having had such unbounded faith in the financial
soundness of the firm, that he would have doubled
the £BOO for which he was an unsecured claimant,
had he been solicited to do so by either of the part-
ners. Let it also be remembered in connection with
the facts detailed, that no harsh-minded creditor was
concerned in bringing about the immediate stoppage
of the firm, but that it resulted from the friendly in-
terposition of the members of Messrs. Barnes' own
family. This feeling of public confidence was
not confined to the firm of Messrs. Barnes and Son,
it with as active and influential, if not more so, on
the side of Messrs. Oak and Snow; and it will be
scarcely credited that although it was publicly ru-
moured and believed more than a week previous to
the suspension of the bank, that Messrs. Barnes'
failure would cause a loss of more than £lO,OOO to
Messrs. Oak and Snow, yet in spite of this known
fact, the all but entire non-possession of private pro
party or capital by either of the partners, and the
very limited character of the business they conducted,
noblemen allowed large credit balances to remain in
their hands, tradesmen swelled the amounts standing
to their credit by paying in to their current accounts,
and depositors deposited to within a few hours of
the public announcement of the suspension of the
bank. In fact, if we sought by commercial precedent
alone, to account for the unswerving confidence en-
tertained by the public in the pecuniary soundness of
these two firms in connection with the facts detailed,
we could not consistently account for their anoma-
lous position in relation to public credit. It is only
by taking into consideration the great length of time
both firms have been in active operation, the gradual
extension of their trade and monetary transactions
in the town and neighbourhood, and the personal re-
spect entertained for those who conducted them, that
we can at all reasonably account for the dormancy
of ordinary public susceptibility in detecting the
plans in commercial credit, and rushing to the over-
throw of these establishments. Still, it must not be
forgotten in attempting to account for the exceptional
features of credit characterizing these firms, that
they were situated in a town and neighbourhood less
marked in their previous commercial history by
failures, especially those of comparative magnitude,
than most others • and it may be reasonably con-
cluded that this fact has tended not a little to pre.
vent the development of suspicion in the public
mind, and to stave off the evil day. In truth, pecu-
liar local circumstances may be said to have hedged
round the bank with security, and to have shielded it
from the commercial dangers which threaten others
less advantageously positioned. A noble lord is said
to have allowed a considerable sum to remain in the
bank from a desire not to inconvenience Messrs. Oak
and Snow by its immediate withdravrment, and
likewise to confirm public confidence by displaying
the absence of any alarm relative to the security of
the bank. This generous and self-sacrificing conduct
was probably participated in by others, and had the
advice tendered by the noble lord referred to been
acted on, the assistance afforded by Messrs. Glyn
and Co. would have allowed the bank to meet all
immediate demands; and if Messrs. Oak and Snow's
involvements prevented them from conducting its
future operations, the valuable commission could
have been handed over to men of more capital at a
premium, and stoppage, with all its serious conse-
quences to the creditors and injury to the trade of
the town and neighbourhood, might have been pre-
vented. Not the slightest run has been made on
either of the two other banks in the town, and the
application for withdrawmenta at the Savings' Bank,
of which Mr. Oak is the treasurer, have been no
more than on ordinary occasions.
A meeting of the creditors of Messrs. Barnes and
Son was held on Saturday week. The balance-sheet
was prepared by W. C. Fincham, Esq., and fully
and fairly detailed the particulars of the financial
position of the estate. It appears that the sum
secured to creditors amounts to £9,000, leaving a
portion of assets of the value of £1,600 to meet un-
secured liabilities amounting to £16,000. A dividend
of 4e. in the pound was offered, 2s. of which was
generously proposed to be supplied by Mr. S. Wel-
lington a brother-in-law to the insolvents, who also
promised to become one of the guarantees to secure
the payment of the proposed dividend to the credi-
tors. The offer was refused at the meeting, the
creditors requiring ss. in the pound,
A meeting of Messrs. Oak and Snow's creditors is
announced for Tuesday (this day), and we sincerely
hope that the dividend to be offered will amount to
such a sum as will induce the creditors to accept it,
and prevent the expanse and cost of ulterior pro-
ceedings in a Court of Bankruptcy. It is a some-
what singular coincidence, that Mr. Oak, of the firm
of Oak and Snow, is at this time Mayor; that Mr.
Snow, the other partner, is a member of the corpo-
ration; and that Mr. P. A. Barnes, senior partner
of the firm of Messrs. Barnes and Son, is also a
member of the civic body. Among other charitable
funds deposited in the bank is the " Salkeld Memo-
rial Fund." It is said that a heavy joint bond has
been given by gentlemen in the neighbourhood to
Messrs. Glynn and Co. (bank agents to Messrs. Oak
and Snow), as security for advances lately made to
the bank. Many persons have drawn out sums de-
posited in the Savings' Bank and Landed them over
to the keeping of Messrs. Oak and Snow, who we
believe, have always offered a higher rate of interest
for deposits than either of the other banks in the
towii.g