Northern Times.
Liverpool, Merseyside, England, 1857-11-13 00:00:00

REPORT.

Since the last report to the shareholders, at their annual
meeting in July, it became apparent to the directors that
the position of the bank, in respect to losses incurred and
copital locked up, and unavailable, rendered it impossible
to carry on the bank, except at the risk of being suddenly
stopped by a run that might at any time ensue from the
disclosures of these losses, even if the constant drain on
its resources which seem to have set in, did not compel its
suspension within a short period. It was, therefore,
decided that it would be the wisest course to sea assist-
ance in London. The state of the money market made it
extremely difficult to obtain this assistauce, and the bank,
after various protracted negotiations, failed to secure it in
time to prevent the necessil of closing its doors, at the
moment when its efforts seemed to be successful.

It then became the duty of the directors to place them.-
selves in such a position as would satisfy the shareholders,
the creditors, and the public, that they were doing every-
thing that could be done for the interests of all conc.srned.
Under the able advice of Mr. Field, whom they sum
moned from London to their assistance, they called
toge' her a large number of shareholders net previously
connected with the management of the Bank, to assist the
directers by their advice and sanction in all the steps
necessary and advisable to be taken. The chairman of
the committee then formed by these shareholders will
inform you more particularly of its proceedings ; and the
directors would only briefly state that it was farther
deemed desirable, under the advice of Mr. Field, to
summon a meeting of the depositors, who elected a
committee, with which the directors and the committee of
shareholders have since been in communication.
Mr. Bran cksr, Chairman of the Committee of Share-
holders, and Mr. Dixon, one of the managing directors,
were deputed to go to London an l open negotiations with
the bill brokers there. The result is that the London bill
holders and a large proportion of the depositors have
agreed to accept the terms of payment proposed by the
bank, viz : In instalments of six, twelve, eighteen, and
twenty-four months, with seven per cent. interest, and
there is every prospect that the remainder of the depositors
and the few other 1311 holders who have yet to be com-
municated with will fall in with the terms, which so large
a majority have already in this short si,ace of time so
readily acceded to:
To provide against the possibility of angry feelings excit-
ing shareholders and creditors to a course of action which,
though natural in its motives, might lead to results exceed-
ingly detrimental to the interests of all concerned, creditors
as well as shareholders, the directors adopted the sugges-
tion of appointing mediators who might step in to calm
irritation, and to point out the absolute necessity of all
parties, shareholders, directors, and officers of the bank
uniting in one general effort of cordial co-operation to
make such a settlement with the creditors of the bank as
would be most conducive to the interests of shareholders,
whose forbearance in seeking the fullest information that
can be afforded, is only desired in so far and so long as
the exercise of it is absolutely necessary for their own
interests.

Mr. George Holt, Mr. James Robinson, Mr. Edward
Moon, and Mr. James Aikin have kindly consented to
accept the office of Mediators, and the Directors have only
to express the wish that their kindness in so accepting an
onerous duty for the sake of the good results to the welfare
of all count eted with the bank, may be reeipzoea`ed zts it
deserver, by the determination to make the call for their
good offieso as little needed as possible.
With reference to the pecuniary position of the bank,
the Directors have to state that mare than one-fourth of
the capital is gone, an amount which, under the deed,
renders it imperative upon them to give the shareholders
the option of winding up the affairs of the bank, and that
tbreo-frurths cf the capital is so locked up as to be at
present unavailable for banking purposes. These are the
only two points that it is essential to sta`e as far as regards
the objects of the present meeting.
With reference to the general affairs of the bank, the
directors neel hardly state that it is at all times extremely
difficult to arrive at conclusions that will convey reliable
impressions as to the probable results of the winding up
of matters involving such very large amounts, ecipec'ally at
a time when the varying aspect of the Money Market, and
the occurrence of unexpected commercial difficulties of
unexampled intensity, bring new elements of embarrass-
ment into play. They consider, however, that they have
ground to hope that a portion of the capital may be pre-
served. The amount so preserved will mainly depend
upon the good management end judicious nursing of assets,
which the arrangements now proposed will enable those
gentlemen to exercise who are about to take charge of the
bank's affairs.

The resolutions which will be submitted for your adoption,
have for their object the voluntary winding-up of the bank,
under, and in accordance with the provisions of the Act
of 1857, which was framed with the intention of leaving
Ihe conduct of affairs in the hands of shareholders
themselves, subject only to the interference of the Court of
Chancery, wh.n it is required to compel an inconsiderable
minority of shareholders or creditors to yield to the wishes
of a majority, and to arm the company with sufficient
power to enforce on reluctant shareholders a compliance
with calls made on them, in order to enable the bank to
discharge its liabi'ities.
The directors are happy to inform you that the regis-
tration of the company, resolved on last Tuesday, is now
completed.

Having thug laid before you a statement of the proceed-
ings of the directors. with reference to the circumstances
which have given ese to this meeting and having indi,ated
the steps propored to you in the present posture of affairs,
the directors beg t' refer you to what be stated by Mr.
Braucher, the cha'rman of the committee of shareholders,
and to what Mr. Harmood Banner may wi,h to say.

(Signed,) WILLTAII RATSIBONE, Chairman.
Liverpool Borough Bank, Liverpool, 12th Nov., 1837.

Mr. J B. Braneker, chairman of the Shareholder
Committee, then pro ented the following report, on behalf
of that committee :
The Committee of Shareholders of the Live pool
Borough Bark, informally appointed, no doubt, but pre-
, enting at the time, as has been since eminently proved, the
instrument most ready at hand, and under a!l ei,cumqances
best calculated to aid the Directors in deciding on
such measures as the m geucy of the circumstances
required, beg to pre-ent the following report.
After agreeing on a recommends., ion to the directors to
convene a meeting of the shareholders, the committee pro-
ceeded to take into consideration the best mode of ap-
proaching the creditors of the bank, in which consideration
two points of vital importance were involved—the one
being the probable successive periods at which assets
might be expected to be realised, so as to base thereon
some definite proposal; the other, as to how long it could
reasonably be expected that the creditors of the bank
I would consent to defer the settlement of their claims.

. _
After mature delibeTation, it was decided to recommend
the payment in cash of all deposits under £2OO, so soon as
the directors should be in a position to do so, and to offer
to all the other creditors of the bank alike, the bank's
promissory notes, at 0, 12 18, and 24 months' date, with
interest at the rate of 7 per cant. per annum. Onerous as
this latter condition may appear, it was only with great
difficulty that a large and influential portion of the credi-
tors could be brought to give their assent to i'.
That difficulty having been however overcome, and a
large number, representing in amount nearly three-f.urths
of the whole, having now acceded to the propositions, it
may be fairly assumed that they bear upon them the stamp
of reasonableness, both in respect of the creditors and of
the shareholders.
It is further to be hoped, that the unanimity exhibited
at the meeting of Tuesday, and the determination evinced
to proceed with the liquidation of the bank's affairs in the
best possible manner, will not be without its effects in
influencing such creditors, as have not yet assented to come
into the arrangement.
The sub-committee of the shareholders committee,
having had a somewhat more intimate access to the state
of the bank's affairs, it may be expected that the report
should contain some allusion thereto.
' 89 far he the shortnees of the time, they have been able