Northern Times.
Liverpool, Merseyside, England, 1857-11-28 00:00:00

MONETARY.. DIFFICULTIE S

THE BANK CRISIS IN GLASGOW.

GREAT PUBLIC MEETING.

A public meeting of the inhabitants of Glasgow, called
by the Lard Provost, was held onThursolay, for the purpose of
expressing their apprehension of the appalling consequences
of the final stoppage of the Western and City of Glasgow
Banks, and their opinion of the public expediency of
maintaining these banks, as well as to consider the
propriety of memorialising her Majesty's Government on
the aub'ect .

The meeting was to have been held in the Merchants'
Hall, but long before the hour for beginning the business
had arrived, it was found necessary, from the number of
persons unable to procure admission, to adjourn to the
City Hall, which was speedily filled in every part. The
Hon. the Lord Provost took the chair, and was surrounded
en ehe platform by many of the leading merchants and
manufacturers of the city. His Lordship, in a short
speech, opened the meting, expressing in strong terms his
opinion that the final stoppage of the suspended banks
would result in great calamity, not only to the city, but to
the country generally ; and supported his opinions by
statistics, showing the number of depositors, shareholders,
and others, whose interests would suffer severe damage by
the winding up of those establishments.

Sheriff Steele then rose and proposed the following
resolutions :

I.—That the English Banking Act of 1844, by pro
hibiting any new Bank of issue, established practically a
monopoly of the business of banking in Scotland in favour
of the then and now existing banks, and the business of
Scotland, whether commercial or agricultural, which has
increased prodigiously since 1845, would receive a ♦iolent
check were either the amount of capital now applied to
banking, or the paper issue, by which that business is
almost exclusively carried on, materially diminished, or
even concentrated in the hands of a smaller number of
powerful corporations than at present.
2.—That the final stoppage and judical winding-up of
the affairs of the western and City banks, two of our moat
extensive local banks, would farther he a public calamity,
as entailing great loss upon the proprietor s, and serious
inconvenience to upwards of 50,000 depositors, and ruining
a great number of manufacturing and commercial houses
throughout Scotland, who have been doing their business
in these banks and their branches, and who, although
perfectly solvent if afforded the usual banking facilities,
could not, if suddenly forced into liquidation, realise means
sufficient to meet their engagements.
In supporting his motion, the learned sheriff made a
number of remarks expressing disapprobation of the
system of monopoly established by the act of 1844. He
characterised the restrictive act as a most absurd and
pernieions measure, illustrating the compulsory bullion
reserve as being like compelling a gardener to lay up in
his garner one seed for every two he pleated in his garden.
Then the act provided that if business. extended the
proportion of reserve must be increased so that the act
had either done too much oe too little, for if further
restriction could be good for the new, it must also have
been good for the old circulation. He referred to the
Scotch Chartered banks, characterising them as being
chartered to do mischief, and c illed upon the public to
take such steps as would bring the conductors of those
banks to see the danger of the course puisued by them in
throwing obstacles in the way of the resuscitation of the
suspended banks. In concluding, he expressed in very
strong terms the great loss which would accrue to the
shareholders, many of whom were widows and the trustees
for orphans, by the winding up of the concerns. The
legal expenses of such a step would be very heavy, and
he hoped and believed that the public would give the bank
every assistance to keep themselves out of the hands of the
men of law.

Alexander Morrison, E-q., Dean of the Faculty of
Procurators, seconded the motion, which was carried

unanimously.

Mr. Smith, of Jardan-hill, then moved the following
resolution, ,which having been seconded by Bailie Clou:-
tan, was also carried unanimously :
That the ultimate security of the creditors of these two
banks cannot be doubted ; and the first thing requisite to
enable these establishments to resume business, and so
avert the evils already described, is the restoration of
public confidence—a result to be attained chiefly by the
forbearance of the creditors, and by the liberal support of
the other great banking concerur, both in England and
Scotland, to whom the public are entitled ti Lok for aid
in a crisis like the present, in excaange for the peculiar
privileges conferred on them.

It)bert Dalglish, Esq., M.P , then proposed the follow-

nb resolution :

That Her Mejesty's Government ought to be made
acquainted with the present critical position of the mer-
cantile interests in Scotland, and solicited to take such
steps as shall seem most expedient for averting so much
suffering and loss to the nation ; and Caw-, for this purpose
the following deputation be appointed to proceed to
London, to communicate with the First Lord of the
Treasury and the ChancAlJr of the Exchcquer—The L )rd
Provos', the Lord Dean of Guild,Bailie Ciauston, the
Dean of Faculty of Procurators, Hugh Tennant, E,q , of
Wellpark, Robert Napier, Earl, of Lanccfield, with power
to add to their number.

Mr. Dilglish, in speaking to his motion, said that he
believed that there was sufficient commercial talent and
energy in Glasgow to enable them to get throtgh the
present difficulties withoit applying to Government, but
he thought that they had a right to expect assistance.
When the panic came upon Scotland the relaxation of tho
Bank Charter Act was proposed, but the proposal was
unheeded, and the crash had gone on in th it country, but
whenever the difficulty appeared serious in Eaglaud—when
one of the largest dLco ant bonsai in London had to
suspend payment, and the American houses in London were
applying in vain to the Bank of England, then the
measure of relief was granted. He therefore thought that
Glasgow was entitled to relief from Government; for had
they taken means to relieve the pressure is time, the
present calamities might have been prevented.
defended the chartered banks from the charges that had
been brought against them, and believed that they would be
found of very great use in the present commercial crisis.
He concluded by moving the resolution, which having been
seconded by Bailie M'Calloch, was carried unanimously.
W. Buchanan, M.P., then proposed a vote of
thanks to the Lord Provost which closed the proceeding:.