The Sun.
London, England, 1847-11-01 00:00:00

THE UNION BANKING COMPANY

OF NEWCASTLE.

NEWCASTLE-ON-TYNE, OCT.
in special meet-
ing of the shareholders the Newcastle, Shields,
and Sunderland Union Joint-Stock Banking Com-
pany was held at the Assemblysßooms in this town,
on Friday afternoon, and was very numerously at.
tended. Mr. W. 'Woods was called upon to preside,
and Mr. J. Clayton, at the request of the meeting,
attended to afford the benefit of his counsel and
advice.

Mr. Woons, in opening the business, alluded to the
circumstances under which the meeting was held.
He stated that several of the largest shareholders had
been engaged for some days in examining the accounts
of the bank ; that the information they had hitherto
received showed that although there had been losses
to a large amount they were confined to a few cases,
and that the hank was in possession of a large
amount of lucrative business. lle felt it due to
the directors, who had been blamed out of doors,
to call the attention of the shareholders to the
terms of the deed of settlement of the com an 3
which precluded the directors from any Conti-COI in
the management and from all right to require infor-
mation from the manager. The committee however,
felt that as they had not power to require tl:e produc-
tion of the necessary papers and documents, it would
be premature for them to lay any_ statement before
the meeting* or to give any deciaile opinion as to the

THE NORTH AN]) SOUTH WALES
BANKING COMPANY.

The following resolutions have been adopted at a
public meeting of the gentry, farmers, traders, and
others interested in the trade of the localities of Port
Madoc and }'estiniog, held at Port Madoc. Mr. Na-
thaniel Mathew in the chair :
" That this meeting deeply deplores the present sus-
pension of payment by the North and South Wales
Banking Company.
" That taking into consideration the extent of ac-
commodation afforded to this country for many years
by that company, this meeting cannot do less than
express their sympathy with the directors and share-
holders upon so trying an occasion.
" That relying upon the honour and integrity of
the company, and believing that they must possess
ample means to meet all their engagements, this meet-
ing entertain the strongest confidence that the incon-
venience produced by the present stoppage will be
only temporary.
"That as far as the management at the Port Madoc
and Festiniog branches are concerned, this meeting
cannot too strongly express their approbation of the
satisfactory manner in which the business of the bank
was carried on, or of the conduct of Mr. Dillon, the
manager at Port Madoc, and of Mr. Robert Lloyd,
the local director of Festiniog and Port Madoc,
whose constant attention to their duties, and whose
business habits have deservedly secured to them the
esteem awl good opinion of the country.
"That this meeting deeply regrets that the Express
London evening newspaper should have been misled
into publishing a premature report of the stoppage of
the North and South Wales Bank on Friday evening
last; and they feel that the contradiction of such a
report in their Saturday's paper, was no reparation
to the wounded credit of the bank ; such a false re-
port from a paper having the circulation of the Ex-
press being enough to cause the stoppage of any local
hank in these times; and that it is an injury which
nothing can repair, and which a public organ of com-
mercial intelligence should never admit into its
columns, having a tendency to produce, as in this 1
instance, the greatest inconvenience to thousands of
individuals connected with the trade and commerce I
of the country."
The following resolution was also unanimously
adopted, wi,h reference to the National Provincial
Bank of England :
"That, considering the present "position of mone-
tary affairs of the country, and the pressure which
every banking establishment must experience, this
meeting has much pleasure in expressing its fullest
approbation of the manner in which the National
Provincial Bank of England is conducted in this
neighbourhood, and its explicit confidence in its re•
sources, as well as in Mr. Bridgwater, the loss
manager."

The speakers were Mr. J. W., Greaves, Mr. G
Casson, Mr. G. Humphrey, Mr. J. Spooner, Mr. D.
Williams, Mr. J. Holland, and the chairman.

THE TRIUMPH OF THE " BANK-
ING PRINCIPLE."
(From the Bankers' Magazine.)
We need not assure our readers we have great
satisfaction in stating that the Bank Act of 1844, so
far as it relates to the restriction on bankers' issues,
is virtually repealed, and that fear and panic have
overcome the difficulties which were invulnerable to
reason and common sense. We might have wished
that it bad, in seine respects, been otherwi:,e. 'We
had rather that Sir Robert Peel and his followers in
currency affairs had yielded to the clear and un-
answerable statements of their opponents; but before
these could be brcaght to bear a more imperative
argument arose—the safety of the country : and to
this powerful appeal the Bank Charter Act of 1844,
and all the plausible reasoning of its supporters, have
been quietly yielded up.
The events preceding this important step may be
briefly described :—A deputation of merchants from
Liverpool first waited on the Ministry, and presented
a memorial which stated—
" Your Lordship may depend upon us when we
assure you, that if the present pressure be not relieved
merchants and other traders, of undoubted respecta-
bilty, who are not only solvent but rich, and who have
merchandise and bills which, under ordinary circum-
stances, would afford easy and ample means of meet-
ing engagements, will inevitably be compelled to stop
payment."
The reply of the Premier and of the Chancellor of
the Exchequer to this memorial was of the usual
official character; and it appeared almost certain that
Government did not intend to interfere. The state
of the country grew more alarming, and the pressure
on the London bankers assumed a degree of severity
almost unexampled. A heavy drain for bullion for
home use by the different country banks set in against
the Bank of England, and the crisis assumed a charac-
ter too serious to be disregarded. An earnest appeal
was made to the bankers and merchants of London by
the Morning Chronicle and the Morning Herald that
they should wait upon the Ministry and explain the
actual condition of affairs; and ultimately, in accord-
ance with this suggestion, Mr. Glyn, M. 1., Mr. Mas-
terman, M.P., Mr. Samuel Gurney, and other
influential gentlemen, ten in number, waited upon
Ministers on Saturday, the 23d October, and made a
statement, which seemed at length to convince the
Ministry that they could not safely disregard the ap-
peal addressed to them; and that they must endeavour
to restore confidence by taking off the restriction under
which the Bank laboured. They accordingly agreed
to bring the subject under consideration immediately,
at a Cabinet Council. This was done, and on Monday,
the 25th October, the Bank Restriction Act was vir

tually repealed, by the official communication from
the Premier and the Chancellor of the Exchequer,
addressed to the Governor and Deputy-Governor of
the Bank of England.
The immediate effect of this important, and, we
may add, unexpected announcement, was to improve
the value of the public funds nearly five per cent.
within three (lays, as will be seen by reference to
our usual monthly table of the quotations, on another
page. But at the same time, although grateful for
the removal of the restriction which prevented the Bank
making an effort to relieve the country in a time of
pressure; the mercantile community universally de-
nounced the uncalled-for and arbitrary restriction
attempted to be imposed on the rate of interest. A
ancdontdheomse n
minimum rate of interest of eight per cent. is almost
unknown in the annals of the Bank ; and the inju-
rious effect of fixing it at this rate has been at once
and
e, who like us have opposed the re-
strictive clauses of
the Bank Act from the time they

future arrangements of the bank. Mr. Woods
thought that it would be necessary to obtain some
assistance from the shareholders, but that the com-
mittee would endeavour to make the call as light as
possible. He concluded by proposing the following
resolutions :
" 1. That a committee of six shareholders be ap-
pointed to assist the directors and solicitor of the bank
in examining into the affairs of the company, and
that such company, and that such committee, with
the directors and the solicitor, shall have access to all
accounts, papers, and other documents, and shall be
empowered to adopt such measures as they may deem
advisable for arranging and conducting the affairs
of the bank and protecting the interests of the share-
holders.

" 2. That this meeting offers its warmest thanks
to Mr. John Clayton for his attendance upon this
occasion, and that he be solicited to continue his valu-
able assistance by affording his advice and counsel to
the committee.

" 3. That the following gentlemen be the members
of the committee, and that they report to a future
meeting, when prepared to do so; namely, Messrs.
William Woods, Robert Pow, Errington Bell Ord,
William Anderson of Bent House, John Dryden, and
Thomas Barker.

" 4. That in the meantime no transfer of shares in
the stock of the company shall be admitted."
Mr. CORDER, of Ipswich, expressed his concurrence
in the course proposed to be pursued.
Mr. H. CHAYTOR, of Sunderland, said the constitu-
tion of the bank was founded on a principle that was
objectionable, namely secrecy. He thought that a
consideration for the want of customers and of the
district, as well as a regard for the interests of the
shareholders, required that no time should be lost in
resuming the business of the bank. He had no doubt
but that satisfactory arrangements could be made
with depositors, which would meet the present emer-
gency, and that interest should be allowed at 5i per
cent., at all events so long as the pressure existed on
the money market. He hoped that some arrange-
ments might be made with the Bank of England to
issue bank notes, and withdraw the private notes,
which would tend to restore public confidence. He
trusted that their splendid business would not be
sacrificed, but that under a new constitution, which
should be based upon a system of checks, they would
speedily restore their former prosperity. The best
feeling existed amongst the customers of the bank,
who were taking their notes, and merely awaiting the
decision of the shareholders before they opened any
account elsewhere. He should press upon the com-
mittee the strong necessity that existed for losing as
little time as possible in their deliberations. Mr.
Chaytor's observations were loudly applauded.
The names of Mr. Chaytor and Mr. T. Hewitt were
acEed to the committee; and after a short discussion
the resolutions were passed unanimously.
A vote of thanks to the Chairman was given by
acclamation.

The CHAIRMAN, in acknowledging the compliment
paid him by the shareholders, intimated that the call
which the directors would be recommended to make
would be M. per share, but, as it depended altogether
on circumstances how much of this call would -be
required for the purposes of the bank, it was not in-
tended to make more than 21. per share payable at
present, and it might happen that no more would be
wanted.