The Sun.
London, England, 1849-08-18 00:00:00

thisietzinix,

LONDON, SATURDAY, AUGUST 18, 1849.

The shares in the British Bank have all been"
subscribed for, and the list of shareholders is com-
pleted. There is now, therefore, a certainty that the
system of banking which during a long series or
years has been so eminently successful in Scotland--•
which has proved so profitable to the sharehold( srs
and so beneficial to the commercial, trading, and
working classes in North Britain, will receive a fait
trial in the English metropolis. We cannot doubt
the result of the experiment. Sound principlea,wb ell
honestly, fairly, and judiciously carried into exec at'
tion, must ever prove successful. The principles noir
about to be brought into operation in London h sire
been fully tested in the northern part of our island-
They have been subjected to the most stringent
ordeals, and never been found wanting. During
a century and a half the aggregate los.leo
to the public from the failures of Sootell
banks have not amounted to 26,000/, whilst
in this country they have exceeded 26,000,004
within the last 50 years. The losses in Engla ad
within a third of the time have been a thousandfi ala
more than they have been in Scotland. A strong :et
proof could not be afforded of the efficacy of t be
Scotch system than is exhibited by this extraordina
difference:; the causes by which it was produc ed
may easily be discovered. The bases on which t jle
Scottish banks are sustained are more widely r
tended and generally diffused than in this countr.
the middle and the less wealthy classes in Scotia ad
have had a direct interest in supporting the establi 511'
ments in which all were interested either as share
holders or customers. The small capitalist had inve; ;te4
his savings in the stock or shares of the different bunk.;
his welfare was intimately connected with tbeit
prosperity ; he should support it through good rte
port or through evil report. If it became bankrui 't
he falls with it; and, therefore, all his credit an a
resources were always forthcoming to avert such 11
catastrophe. The small trader was also intereseei
although in a less degree ; he was indebted for 10
position, in a great measure, to the valuable acct sir
modation he received when his only capital consis lea
in his integrity and perseverance, and the confide ace
which tho,e qualities produced in his friends. 11°
knew that if he had been fortunate in business it
mainly ascribable to the assistance he received fr 001
the banks—assistance of which he still might be glad
to avail himself ; and he was also aware that the:o
could be but litVe loss while so many of is
neighbours and friends were responsible to the
entire extent of their property. No panics coal a
arise, there could be no failure of credit,
in establigements thus constituted. The cause which
led to so many disastrous stoppages in this ce-untri
was altogether unknown in Scotland ; the banks riot
being subjected to extraordinary runs, were not caw'
pelled to realise their assets, and dispose of tiseit
securities on unfavourable terms, when unduly Jr
preciated. The losses were thus avoided which vier°
found so prejudicial and exercised such deteriora';iog
influences in England. It is, therefore, by no me 00°
surprising that the progress of joint-stock bankia,
north of the Tweed, should have been almost uninter-
ruptedly successful, as well for the profit of those
engaged therein as for the advantage of the cow"
munity at large.
The directors of the British Bank have just pot
forward a very valuable report as to the amount of
business that may reasonably be expected by the eels'
bl:shment, its current expenses, and probable 130:
tits. Of course, it cannot be supposed Lb ati
any positive data which can be relied on as absolute l 9
certain are in existence. Sufficient, however,
ig
known as to the support received and business trans
acted by other establishments, offering far less ao
vantsges to their customers, to enable the experien ,
and intelligent men who have been selected as dir
t)rs to calculate a minimum amount of profit.
there should be any mistake in the estimate, it ,
Nlll
be found that the committee appointed to inquire AO
report have erred on the safe side ;tnl3 ieryexhtarvae vac;ant•
tiously abstained from putting forth a
No peiraell
qualified to form a sound judgment o
or exaggerated anticipations of success;
not, in all,
will venture to affirm
will that they excited
.
any expectations that the question