The British Press; or, Morning Literary Advertiser.
London, England, 1825-12-31 00:00:00

PROVINCIAL BANKS.

YORKSHIRE RANKS.
[From the Leas Iritelligetscerl
Some addidonal particulars to those we stated last week,
of the mode in which banking is carried on in this county.
may be acceptable to the poblic.
The businese of some establishments is conducted dif-
ferently from that of others. The late firm of Dobeon and
Sons. of Huddersfield, issued but comparatively small
number of their bank notes, which, in all, et the moment
of their failure, did not, we believe, exceed 55,000/. They
also abstained fiom drawing upon their London corre-
spondents, but always bad a great many printed stamps for
various amounts its readiness to accept, payable at Master-'
man and Co.'s, London. These acceptances were dated
at two mcnths, but Dobson and Sons expected the drawers
to hand them over equivalents for the acceptances, either
at the time or shortly after, so that in most instances the
customers of the bank in reality discounted its paper. One
consequence of this practice will now be severely felt, inas-
much as all persona who had thus bought and paid for ac-
ceptances must, as drawers, provide again for them when
they become due, and without a hope of any subsequent
reimbureement but a dividend under the bankruptcy.
What may be the probable amount of the latter we shall
not say. It, however, appears, that this season Messrs.
Dobson and Sons speculated largely io hops, and have
thereby realised a profit of at least 10,000/. When the
father of these gentlemen died, some years ago, he be-
queathed them by will 40,0001., which being made known
gave a flilip to the credit of the bank for a considerable
time. Of late the general opinion of this establishment
has not been favourable, nor was the system of accepting
bills, above described, considered 'reputable mode of doing
business by bankers.
The manner in which Messrs. Wentworth and Co. pro-
secuted their busincee was diffkrent. In several of the
neighbouring towns, though. we think, we may safely say
not in Leeds, their issues of notes to manufacturers were
very extensive. A person who had a cettaiti sum to expend
on building a new mill, or enlarging an old one, if he
thought or discovered that the undertaking would require
an outlay greater than he possessed, went to the Wakefield
bank, stated his intentions and his wants, and, did matters
appear satisfactory, on depositing or mortgaging the title-
deeds of his premises, or other adequate securities, the
deficiency of capital was supplied in the notes of the esta-
blishment. These issues were, of course, disbursed to the
different tradesmen employed, and formed part of the cur-
rency of the county. Other accommodations were afforded
in a similar manner, either for wages to workmen, or funds
to meet necessary. demands, and thus a great portion of the
business of the community centred in Messrs. Wentworth
and Co.'s bank. The notes distributed in the mode just
described, fell almost necessarily, in large quantities, into
the hands of retail tradespeople • but, for reasons about to
be explained, particularly into the hands of the Yorkshire
butchers. Hence arose another expedient for recalling the
small paper of the firm, and preventing those heavy weekly
balances from being payable to the neighbouring bankers,
which, according to the rule we mentioned last week, must
have been transferred to their respective agents in the me-
tropolis. In Leeds and elsewhere the banks have been
used to allow a discount of es. per 1001. to all butchers and
other people who exchanged private notes with them for
their own drafts, acceptances, or other bills at two months.
The Wakefield bank, which had so much more paper in
circulation than its neighbours, gave 12s. 6d. instead of es.
discount on transactions of the character and amount already
mentioned, and by that means engrossed nearly the whole of
this branch of business. Hence the great number of their
engagements now in the hands of the graziers and farmers
in the North of England, and which will, in due course,
return upon the butchers, corn dealers, and other retailers
of the {Vest Riding, at no distant period. We have heard
ourselves of one butcher in Leeds, who bas 3001. another
400/. another 700/. of Wentworth and Co.'s bills, at present
" running," as it is termed, and upon whom the effect of
the bank stoppage may be extremely embarrassing.
The Leeds banks pursue ten.opposite policy. They issue
comparatively a trifling number of small notes, and hence
one reason cease safety with which they bare passed
through the recent ordeal of a public panic. They do not
attempt, as it is technically. etude to "force" ibis, paper
into circulation. Their customers are, for the moot part,
the higher order of merchants, manufacturers, and trades-
people ; and in the aggregate, generally speaking, the oc-
casions which these respectable persons have to draw out
and disburse quantities of 1/. or even St. notes are few.
Their transactions at the banks, are, on the contrary,
mostly heavy, and they themselves being of high character,
large property, and undoubted credit, unceremoniously
sometimes overdraw their accounts almost ad libitum, and
without any previous warning to the bankers—on the re-
cognized nnderstandingthat every customer is entitled to an
advance not exceeding one-tenth of the total annual amount
of his money transactions with his banker. We under-
stand that advances in the form of bankers' accept-
ances or drafts are thus occasionally made of 10,000/.
to a single house, and higher sums, indeed, as far as 15,000/.
and upwards ! Such instances may however be extreme,
but we mention them to show the principle on which
banking in this town is conducted. The fact that there are
in Leeds five banks established, and all of undoubted
stability, will also help to explain upon how large and im-
portant a scale their affairs are managed. One circumstance
which has greatly contributed to uphold the reputation,
and to preserve the property of our bankers, we should not
omit to mention, namely, the determined unanimity and
resoluteness with which they set their face against all mere
accommodation bills. Some years ago, these "kites"
were exceedingly rife at Liverpool, and produced in the
sequel great disaster and ruin. An attempt was then made
to innoculate the trade of Leeds with the virus, but the
constitution of this commercial system proved too strong for
the poison; it was rejected, and has never since spread to
any noticeable extent in the town or neighbourhood.

CHELMSFORD BANK.
The public mind appears to be at rest as regards the
stcps taken for the benefit of the numerous creditors under
Messrs. Crickett and Co.'s bankruptcy. A proposition bas
been suggested by Mr. Bartlett, the solicitor, and acted
upon, to apply for an auxiliary commission, which is in-
tended to be held in this town, before which all creditors
of sums under 20/. will be enabled to prove without ex-
pense. Should this commission be granted by the Lord
Chancellor, numbers of the poorer class will be benethted,
and we hope, upon such a representation, the application
will not fail to succeed.—Chelmsfurd Chronicle.

MELKSHANI BANK.

Messrs. Moule, of Melksham, after sustaining a run on
their bank for upwards of a week, found it necessary on
Thursday to suspend their payments, but the tradesmen
generally continued to receive- their notes in payment ; for
on a statement of. their affairs being inspected by J. L.
Phillips, Esq. and J. Fowler, Esq. of Melksham, those
gentlernen were fully convinced that they will have a large
surplus, after satisfying all claims on them ; and we are
happy to find that the .11felkshans Bank will re-open next
week.—Decizes

We have great pleasure, says the Bristol Journal, in re-
cording the following noble act of disinterested feeling for
the character of a city ; we allude to a tender made to one
of our Banks during the height of the panic on Thursday
last, by John flugh Smyth Pigot, Esq. of Brockley Court
and IVraxhall, to transfer 10,000/. in the Stocks, in case
ita partners found any additional funds necessary to meet
the demands which were making upon it.
The agriculturists of East Kent are much displeased
with the Act of Parliament which enacts that corn should
be sold by the new imperial bushel, instead of the old
11-inelicster measure; by which new regulation each sack
of corn will contain one gallon more than that under the
old standard. A meeting took place at the Corn and Bop
Exchange on Saturday to take the subject into consi-
deration, when 1). J. Parker, Esq., was called to the Chair.
A long and desultory conversation ensued, and it was finally
agreed, upon the suggestion of the Chairman, to postpone
the consideration of the subject till next Saturday, and in
the meantime to procure an opinion as to the legal con-
struction of the Act; and he pledged himself to obtain such
opinion by Saturday next. The sense of the meeting was
decidedly against the adoption of the new measures, and
we believe it is even likely that Patliamentilill be peti-
tioned upon the subject, so great is the prejudice against
it.—Kent Herald.