The Sun.
London, England, 1847-11-08 00:00:00

ROYAL BANK OF LIVERPOOL.

A meeting of the proprietors and directors of the
Royal Batik was held at the Royal Bank-buildings,
Liverpool, at eleven o'clock on Saturday, to receive
the report of the committee which had been appointed
to act in conjunction with the directors in the inves-
tigation of the general affairs.
Mr. Josias Booker occupied the chair, and the fol-
lowing gentlemen were present :—James Molyneux,
Anthony Molyneux, W. Potter, J. Heath Leigh,
Esq., Belmont; Robert Bickersteth, W. Tyrer, Ed-
ward Horley, F. Shand, J. Bibby, J. Wilkinson,
Esq., Hartford ; Rev. Frederick Parry, George
Booker, Joseph Cooper, Mr. Moult, J. Holme,
Thomas Bold, James Gerard, Crosby - Mr. J. Stock,
Mr. Gerrard, James Tyrer, J. C. Molyneux, Robert
Gill, Mr. Kendall, John Heyes, Prescot ; H. Duck-
worth, Mr. Dover, Sir Thomas Brancker, Edward

Bury, W. J. Tomlinson.
The CIIAIRNI -‘l,l, in opening the proceedings, pre-
liminary to reading the report, stated that the object
for which they had met was to decide whether the
bank should be resuscitated, or whether all the
_

accounts should he closed at once. The delay which
had resulted from the postponement of this very mo
mentous question from last Saturday had enabled the
committee to devote for a whole week their undivided
attention to the affairs of the bank, anti that their
exertions had been in some measure beneficial was
evidenced in the report which they would then pre-
sent. The following report was then read :
" The first step taken by the committee was to
re-examine the accounts of the bank, and they have
the satisfaction of stating that after the necessary
adjustment, transfer of debts and credit, the amount
of liability will be considerably reduced. Your
committee have also the gratification of stating that
the amount of early available assets had been much
underrated in the former report. It will be seen that
in the course thus taken, the committee have done

nothing but what would be available for any future
proceedings. They are alike, however, strongly
impressed with the importance of re-opening the
bank; and, fortified by the conclusion before stated,
a deputation of your committee proceeded to Lon-
don with a view of ascertaining whether they could
make any arrangement for that purpose. The depu-
SPIRIT of the PUBLIC JOUNALS
tation, being much restricted for time, were unable
to bring the matter in question, as they wished, under FROM THE MORNING PAPERS OF THIS DAY,
consideration in a quarter where they had reason to TIMES.—The near approach of an extraordinary
believe that their propositions may be favourably session, and that the first meeting of a new House of
entertained; and, with the approbation of the pro-
Commons, excites a curiosity which will hardly be
prietors, the committee will immediately follow up
satisfied with general anticipations even of the most
that which has been left incomplete. Your corn-
rational and obvious character. The necessity of an
inittee are now busily engaged in a revisal of the
early legislative sanction for the late Ministerial in-
deed of settlement of the bank, with the object terference with the Banking Act does not fill up the
of placing the control and government of the estab-
outlines of public expectation. Something more posi-
tive and remedial is surmised. That our imaginative
lishment on a footing of security to the proprie-
tors, a measure of great importance in any project for fellow-subjects across the Channel should take the
reviving: the bank. In conclusion, your committee
hint, or seize the occasion, is by✓ no
loud at our no means wonderful.
recommend that a further attempt be made to revive Conciliation-hall has already
the bank, and with this object, that power be taken to announcement that Parliament had not been sum-
moned prematurely for another Irish relief measure.
create 4,000 shares of 1001. each, the subscriber to
We still, however, retain the belief that Government
have preference to the extent of seven per cent. per
will prefer to see the present measures in effective
annum, to take liability only on transactions of the
bank from the date of re-opening, and subject to the operation, than to overlay them with a new one,
destined in its turn to be shelved before it has
revision of the deed of settlement, as recommended,
such shares to be first offered to the present share had a fair trial. The report of the so-called
holders, holders, and to be transferable as soon as paid up. offers some legislative sugges-
Irish Council
Payment to be made on the 20th of 'Tannery, and to lions more worthy of notice than what usually
proceed from such irregular bodies ; but they are of
bear interest from the day of payment.
JOSIAS BOOKER, Chairman.
a gravity which requires long discussion. Notwith-
"
" Liverpool, Nov. 6, 1847." standing, therefore, the attempt which of course
The CHAIRMAN, in explanation, said that those gen- will be made, from the mere love of mischief, to
tlemen who put down their names for preference divert the forthcoming session from its original
shares would supersede the call, and that the money destination, we may confidently say that its first ob-
already paid would go as a moiety in payment of the
ject will be the Bill of indemnity promised in the re-
preference shares. The bonus shares had been can- cent letter to the Governor of the Bank, and that
celled, and the money paid for the bonus would be little or nothing else will be done, except what bears
carried to the credit of those taking preference on ac- directly upon the critical condition of commercial
count of payment. If the preference shares were de- affairs. But an indemnity for the breach of an Act,
dined, then the call would have to be paid. Gentle- or rather for permitting the possible breach of an Act
men might take their choice. only three years old, is not a measure to end in itself.
Mr. COOPER—Suppose a person chose to take pre-
When the existence of a rule is so brief, an exception
ference shares, but who had already paid up the bonus is a weighty affair. Ministers will come before Par-
of 50/. ? 'lament : with an acknowledgment that the Banking
The CHAIRMAN—That would go in part of the call. Act is not fully equal to the occasion, or at least that
The CHAIRMAN, after replying to several other it is desirable to reserve somewhat more for the dis-
questions, went on to say that the report had been cretion of the Executive. They will also have to
most carefully drawn up, and, after the most mature encounter a garrulous clique
consideration, the conclusion to which he had come self-consequence by their twofold elated into enormous
old triumph--our com-
was, that under existing circumstances the venom-
mercial distress and the relaxation of the Banking Act.
mendation made was the very best to promote their
Hence they will probably think it wise, or at least
d
interests.—(Cheers.) He was sure that that report decent, to grant an inquiry into the operation of
would recommend itself to every one of the intelligent that Act. They will also have reasons for their
proprietors present ; and he could not refrain on the own. The Act has worked well as far as it has
g
present occasion from expressing the gratification gone. It could not prevent an immense inflation of
which the committee had experienced at the dignified commercial credit, and a consequent creation of
forbearance manifested at the meeting last week. He fictitious and transitory wealth in shares ; still less
trusted that a similar tone would pervade at the ad- could it prevent the consequent collapse. It could not
journed meeting, for he was certain that nothing prevent a deficiency in the crops of these islands to
would more tend to enable the committee to carry out the value of more than 20,000,0001., o: other unto-
ward events. It has, however, saved the circulation
the intentions of the great body of the constituency,
itself from being abused into the support of false
and by restoring the bank to its former position, to
credit. It has preserved the currency sound. It has
sustain the high character of the merchants of Liver-
kept the bank-note, whether national or private, with
pool.—(Cheers.) If there should be any person then
some few exceptions, as good as the sovereign. But
present so far alarmed as to be ready to sacrifice his
the Act itself, in its own expressions, the known
property to get rid of his liability, he would say to
opinions and the public avowals of its author and
that person, " Cease your alarm—struggle with your
early supporters, as well as its obvious tendency, in-
difficulties like a man, and do not turn your back
dicated that it was a cautious and experimental step
an them like a coward."—(Applause.) It was true
to a further development. Whether the extraordi-
that they could boast of one of the wealthiest
proprietaries in her Majesty's dominions ; but it
nary incidents of this year, and the presumed neces-
was also undoubted that amongst them there were sits of interference with the provisions of the Act,
many individuals whose property would be very afford sufficient reason for carrying out its principles
seriously injured, should a winding up of the con-
still more consistently, is a proper subject of Parlia-
cerns of the bank be inevitable. He would speak out, mentary inquiry. An inquiry will doubtless be de•
however ; they had no cause whatever to be alarmed. mended, and to an inquiry there will, we should
—(Cheers.) With fresh tackle and good manage-
think, be no valid objection. The Banking Act con-
ment, with the blessing of Providence, the Royal tains provisions empowering the Bank of England,
Bank would weather the storm, and cast her anchor with the consent of the Executive, to enlarge its se-
curities, and issue additional notes to two-thirds
in a harbour of safety. There were two courses
before them, and it was for them to decide which the authorised amount of any private issue that
they would adopt ; one was by restoration, which may happen to become extinct. This contin-
could only be secured by their united efforts; and gency has now occurred so often as to make
the other was by liquidation. If they were deter-
the aggregate void in the circulation very
mined upon the latter, let them take a comprehen-
considerable, and to render the contemplated in-
sive view of their interests, and let a fixed period be crease in the issue of the Bank of England rather a
named.—(Hear.) serious measure It is a rule of political arithmetic
that an accumulation of Ministerial responsibilities
Mr. S. HOLME had had the honour, at the preced- , amounts to a case for legislative enactment. The
ing meeting, of moving that there be a postponement extinct country issues now amount to 291,515/. The
of the question of the liquidation of the bank ; and Bank of England has not yet applied for a consequent
he thought that the meeting would agree with him augmentation of its issue on securities. Such an ap-
that the most beneficial result had arisen from that plication, indeed, at the present moment, when it is
delay. Ile agreed with the Chairman that the almost daily at the option of the directors to give or
temper and forbearance which had been displayed to deny vital aid to country banks, would be rather an
by the meeting on the last occasion calamitous odious proceeding. But it is evident that a case has
as that occasion was was calculated to assure arisen for adjustment. With so great a tendency to
every individual, whether depositors or otherwise, monopoly, however, and so great a scope for abuse, it
that, bound up, as the bank was, with the credit is not very likely that Parliament will now interfere
Anil prosperity of Liverpool, no exertion would with the special object of extending the inconvertible
be wanting to enable the bank to resume issue of a bank the directors of which have private
business.—(Cheers.) It was his conviction that in ends to consult,and private shareholders to account to.
the present calamitous state of the public at large, The previous question will be moved,—To whom shall
nothing would tend more to restore public con ti- the responsibility of issuing paper money be con-
(le nce than the resumption of business by the bank. tried? Other circumstances of the crisis constitute
Ele thought that it was highly desirable that in the an aggregate of difficulty requiring the interference
ia o.ceedings they were now about to take some efforts of the Legislature. The general suspension of
way works is in every point rail-
should be made to establish the concern for the futureof
view a most
serious
upon a far wider basis, and upon more sound prin- fact. Though unfortunately required by the pre-
ciples, that the confidence of their constituency and sent state of commercial affairs,
or, to speak more
the proprietors might hereafter be implicitly vested distinctly, by the present available amount of
ill their management. He rejoiced at hearing two the national resources, it cannot be effected without
things in the report ; first, that their liabilities had much inconvenience and some irregularity. How is
been considerably reduced, which was as much as to this to be done ? The country asks now with some
eey, that a larger sum was now in the possession of impatience that very question which we emphatically
the hank than at their last meeting ; and, secondly, obtruded on Sir Robert Peel in February, 1846, and
that the early available assets had been much under- on Lord John Russell before the close of that session,
rated—that a very large sum, much larger than they
lied any reason to anticipate, would shortly flow into and again in January, 1847. What is wanted is evi-
dent enough. The only difficulty is that which re-
their coffers, and thus enable them to resume busi- lates to the means. Whatever the vehemence or ins-
noes. He most cordially agreed in the revision of the patience with which particular works may be prose-
deed of settlement ; he thought that was decidedly cuted, the whole country agrees in the demand for an
necessary. Connected as he was with the great extension of time. What has been undertaken must
tradesman body of Liverpool,The did not hesitate to be spread over a much longer period. We think, too,
say, on the part of his fellow-townsmen, that it was the general mass of shareholders will not be sorry that
absolutely indispensable that the basis of the ope- the question of progress or stoppage should depend on
rations of the bank should be extended, and for the positive and expressed approbation of a decided
that reason he was glad that they had come to majority. So much for existing acts. For those yet
the resolution of issuing shares of 1001. each—the to come it is not unlikely that painful experience has
more extended the basis the firmer would be the apex. impressed the lesson of assigning a more authoritative,
He had attended the other day the meeting of the or rather initiative, course to the railway board in the
depositors, and, as he had paid a compliment to the introduction of Bills. A Legislature compelled to be
meeting of the proprietors last week, he was bound wise after the event, and reduced to the indignity of
Also to speak of the great feeling indicated by every facilitating the postponement and total suspension of
individual at the Clarend Rooms. The depositors onworks have determined to demand an interest of 6 per cent., which itself had authorised and armed with
and such interest, he powers of compulsion, will not immediately return to
The railway Bills of next session must
them. They had thought, was just ydue I to
its old errors.
treated their move to the bank
and some of them were now •• Y , undergo a stricter ordeal,
and not be permitted to
severe distress. Mr. Alderasutlering, undoubtedly, enter either House unless they are recommended by
then present, but he (Mr. nolirneh rhpson was not necessity as well as advantage.
i•eference to the motion tendered at might observe, in CHRONICLE.—Those who entertained doubts
by that Hon. Gentleman, that if tho
es last meeting either as to the safety or as to the practical benefit of
had been adopted the consequences wolShggestions the suspension of the Bank Charter Act, will probably
most calamitous.—(Hear, hear.) Their posittitovne been have some of them removed by the accounts of the
in a week, had improved ; and he had confident position,
first week of operations after the Government inter-
that in a short time the committee would be enabledies ference. In that week, at all events, it is not possible
to come to a conclusion beneficial to the town, and to detect any symptoms of evil. The Bank, we were
suilaractory to all parties. Mr. llolme concluded by told, could not increase its discounts without a loss
moving the adoption of the report. of bullion equal to the increase. The discounts have
Mr. A. F. JONES seconded the motion. beenss increased, however, by nearly a million, but the
Mr. J. COOPER would not have troubled the meet- tceic of bullion, instead of showing a diminution, is
- had he not thought it incumbent on him to reply greater than it was before. It is important to notice,
nig
or two of the remarks of Mr. Samuel Holme. too, that this increase in the bullion tookplace .
to one
net gentleman had cast some reflections on Mr. spite of a continued home demand for gold for the
and himself (Mr. Cooper).
Thompson use of banks in Ireland and in •
Alderman the week in the provinces. During
addressingthe meeting amidst loud question a considerable quantity of gold
Mr. S. HoLmE,
.i
e denied the .
imputation in toto. dependparties who did not
cries of " No, no,
understood in saying only that discounts of the Bank for th obtaining it. Whether the Bank e means of
He had wished to be
recommended
by the Hon. Alderman did not extend its discounts, iof England did or
if the decision
have been most unwise. Irish banks would, at whatever ccezin that the
had been come, it would to justify
II had, however,
a. e tinued to strengthen the reserves
have con-
,Mr. COOPER resumed. inoccasion referred to. in their various branches, in
es of bullion
t on the
order to
him.,elf and his conduc
one account showing that meet any sudden demand arising
When he had found
lei. fto one party, and that small-note circulation. Indeed, from their
soier from being
550,0001. had been v - ,as owing to the checked in their efforts to obtain gold by any restric-
-1,500,000/.. some on certain assets, ‘'' .
the public,
lion on the part of the Bank of England, there can be
bank, it had strut z Aim that, in justice to
4-4
-e
to say nothing of: aeir own individual interests, ~... doubt that if the Bank had been compelled by the .
con f the Act of 1844, during the week
best course would have been to proceed at once to a tinuance s.
- . i,,,,.. to atop its discounts? and
liquidation.— (Hear, hear.) In supporting Alderman ending the 30th of Octuw..., -- --