The Sun.
London, England, 1834-05-09 00:00:00

A PROPRIETOR—What actual control shall we have ?
Can we prevent, the issue'of notes? (ph ! yes!)
A PROPRIETOR—What advantages will the local share-
holders derive from our connection ? _

Sir W. CoswAv—The advantages they will derive will
accrue from the great credit of the London Company, and
whatever subscribed capital they pay, we shall give• them a
certain interest for it. _

A PROPRIETOR—Suppose they increase -their notes
beyond a certain number, what control can we have ?
Sir W. CoswAy—ln that case we should send down a
London Director, who would say to the local directors,
" you are going beyond the mark." In fact there will be
a most absolute control. _ _

A PR;PRIETOR-Should I be liable for the whole of
my subscribed capital ?
Sir W. CoswAY—Yes beyond a doubt.
A PROPRIETOR—IS the capital which will be advanced
to be applied to the working of the concerns?
The CHAIRMAN—The true spirit of banking is to have
a large capital for banking, and to have in reserve the
money received from individuals, putting it out to the best,
advantage. Suppose twenty-five thousand pounds is to be
subscribed in every one hundred thousand, and that amount
which is subscribed in London will be kept in reserve for
the local banks. The business of the directors will be only
to keep it in security. It will therefore be the same as if
actually employed in the country.
Sir W. COSWAY—A reserve fund, in fact, to be used in
case of necessity.
Mr. BARNES—The sum subscribed in London will be
applicable only in the event of the local banks sustaining a
loss.

Mr. Blowly, a proprietor, who stated that he had been
much engaged in banking in the West of England, stated
his opinion, that the profit proposed to be allowed to the
local shareholders was too small, and that the plan would
not be successful.
It was here stated that the meetinr, was convened to dis-
cuss the principle, and not to go into the details of the
plan.
A PROPRIETOR—But the principle is of no use if the
details are impracticable.
Colonel HAY said the details had not been decided
upon, and referred to that part of the resolution which
stated that the local shareholders " shall content them-
selve swith such profits as shall be agreed upon."
A PROPIETOR—I beg to ask whether, in any emer-
gency, the portion of capital subscribed by. us to the coun-
try banks would actually be employed by them ? Would
it be drawn out under any circumstances ?
Sir W. CoswAY—Oh, yes.
Mr. Ox ivr a Fa ItRER, a Director, said he must express
his satisfaction that the question had come before the Di-
rectors to receive their approbation, or the contrary.
They were, however, under a complete misunderstanding
as to the motives and feelings of those who were denomi-
nated the Irish Directors. He was not aware, however,
that those Direetors had ever advocated the Irish system.
They had conscientionsly opposed the English system, but
they had not attempted to do more than this. 'fhe ques-
tion now came before the proprietors, and he and those
who acted with him were no longer responsible. It was
his honest opinion that the present was a most dangerous
measure. They were about to incur a most dangerous
responsibility. They were about to engage in the setting
up of local bank shareholders, who were to trade upon
credit instead of capital. If they established two or three
hundredlocal banks, they must have two or three hundred
partnership deeds ; and who would be the gainers then ?
The lawyers only. The very preparation of the deeds would
take a great deal of money; and was it likely that where 2
or 300 partnership deeds were carried on, they would be with-.
out the blessings of fifty Chancery suits ? He had no ob-
ject to answer in objecting to the plan—he proposed it from
conscientious motives. Suppose they went down to Liver-
pool, Birmingham, or any other large and wealthy town,
and said to some of the leading men, "We have a proposal
to make to you. We will lend you our credit to
bank upon." What would be the answer ? " Thank you,
gentlemen ; we can carry on our own affairs very well ;
we can make use of our own capital without_you." They
certainly might establish the banks in poor counties, where
their credit might be of service ; but they must, in that
ease, take a very inferior description of persons as partners.
In the great towns of this kingdom did they want credit?
On the contrary, they said there, " We have plenty of capi-
tal. We only need an advantageous way of-employing our
capital ourselves." With regard to principle and details,
if any principle did depend upon details., it was that of
banking. Admit that the principle was advisable, then let
them see also whether they could put it in practice or not.
He would undertake to say that not one of his colleagues
knew anything about the details of the plan. In conclu-
sion he would say, if the proprietors were determined to
adopt the plan, at all events give the most unlimited power
to the directors, and let them take the best means they
could to do it. (Cheers. )
Dr. ELMORE said he felt great regret at the intended
retirement of those directors whose opinions were adverse
to the proposed measure, but at the same time he was
fully aware they could no longer act with the gentlemen
who would remain. With regard to the Irish system,
they had commenced with it, and what had it done for
them? Three millions had been subscribed, and vet how
few banks had been established. But, in fact, they could
not establish any number under the Irish system. The
present plan, in his opinion, combined the advantages of
the two systems, the Scotch and the Irish. (Hear,
hear.) He thought it was the general feeling of the
shareholders that the directors should be allowed to do al;
they thought advisable for the execution of the proposed"
plan.
Mr. REMINGTON, a director, thought the measure
would be dangerous to society and to the stability of the
interests of the country at large. By the proposed mea-
sure the society wanted a certain quantity of profits from
the local shareholders, but what was to be given them in
return? Nothing at all.
Another DIRECTOR said he objected to the plan upoil
principle. They were not authorised, according to the
prospectus of the society, to enter into a new plan. He,
and those who acted with him, washed their hands of it,
and he was determined to resign his power intothe hands of
the proprietors, as had been intimated to them in the cir-
cular which had been sent round. .

Captain WARREN trusted that the question would now
be put to the vote. The proprietors had made up their
minds upon it.
Colonel HAY begged to say a few words in reply.
Mr. Farrer had spoken of the great expense of the part-
nership deeds. One general deed would answer the pur-
pose—the rest would be copies. With respect to what he
had said of the merchants and others in the great towns,
he thought that his statements were not founded in fact.
Was there no reciprocity in the security given to the
country banks of the present great establishment in town ?
By having this security, would they not be able to extend
their business in a way that no private joint stock bank
could do? And would not the customers place additional
confidence in them ? If there was an obligation, it would
be on the part of the local shareholders to the Company.
The CHAIRMAN, in putting the question, said, that if
he and his friends had not been convinced of the soundness
of the English system, they would not have recommended
its adoption. He had remained in the direction, for the
last eight or ten months, under the most unpleasant cir-
cumstances, solely from a sense of duty, and from a feeling
for the shareholders. There were, in consequence of the
division of opinion, constant sources of irritation ; and
the meetings of the directors from day to day were occu-
pied with disputes. When this question was decided,
there would be unanimity amongst the directors, and the
affairs of the Society would of course be more efficiently
managed.
The resolution was then put to the vote, and carried al-
most unanimously.
. . . _

A resolution for altering and adding to thg deed of set-
tlement, in order to carry into effect the plan proposed,
was then agreed to.
A resolution enabling proprietors residing at a distance
from town to vote by proxy at the meetings of the society
was also carried without any discussion.
It was then moved and seconded that the meeting should
agree to a recommendation made by the court of directors,
to the effect that the powers then vested in the court of
directors relative to the appointment of additional directors,
and the filling up vacancies in the office of directors, should
be thenceforth vested in the general body of proprietors.
Sir W. COSWAY said, that to carry out the principle
which had been adopted, it was very necessary that the
directors should have the opportunity of meeting with
gentlemen who would co-operate with them in the most
effective manner. He therefore moved an amendment to
the effect that the powers which the directors now had of
choosing additional directors should be continued to them.
Dr. LLatoax seconded the amendment.

Mr. FARRER said that the directors, who should be 24
in number, were only 19, and of these 10 were now about
to retire. Under such circumstances, it was thought due
to the proprietors to leave the matter to their decision.
Not the slightest slur was intended to be cast on the direc-
tors who would remain.
The amendment was then carried.
After a vote of thanks to the chairman the meeting ad-
journed.