The Sun.
London, England, 1859-12-31 00:00:00

THE LIVERPOOL BOROUGH BANK.

A general meeting of the proprietors and contri-
butories was held on Thursday, at the Banking-
house, Liverpool, for the purpose of considering an
account made up by the liquidators, showing the
state of the company's affairs, and the progress
made in winding up the same down to the expira-
tion of the second year after the passing of the re-
solution for winding up the affairs of the company,
and a report stating the reasons why the winding-
up had not been completed.
Mr. BRAMLEY-Moons said limas mueh surprised
that after the lapse of a year the liquidators had
not given the shareholders any more information,
though they had had ample time and leisure for
examining the books and searching into matters
connected with the management of the bank. To
the chairman the shareholders more especially
looked that their interests should be attended to.
Since last year he (Mr. Moore) had obtained certain
information at great cost, which he maintained the
liquidators might and ought to have given the
shareholders gratuitously. (Hear, hear) Of this
informatior he would give a sketch merely. Up to
1841 the business of the bank was conducted upon
the sound principle that whenever a debt became
bad or doubtful it was Written off, and so
remained until dividends were brought to its
credit by parties owing the bank money.
This system, in consequence of the bank getting
into debts which they were probably afraid
to lay before the shareholders, was given
up, and a bad and doubtful debt account opened,
which went on to 1846, when a heavy failure
occurred. Up to that time the reports and state-
ments issued by the directors were duly signed in
accordance with the deed of settlement, but from

1848 and 1849 to the close of the bank, there was
not a single statement so signed. This was a grave
-and serious matter, and its truth could be perfectly
established by a reference to documents in his (the
speaker's) possession. Next with regard to the
management—no minutes were kept until 1849,
and then the minutes entered were meagre and
miserable in the extreme. (Cheers.) having given
a summary of the dates of these minutes, and ob-
served that comment upon them was unnecessary.
Mr. Moore said that no security-book was kept till
1856-57. They had been told that the directors
were ignorant of what was going on in the bank,
but he found that there were discussions and reso-
lutions of secrecy signed on more than one occasion.
On June 30, 184 G, it was decided that, " in order
to prevent a public discussion arising out of the pre-
sent state of the bank, which under other circum-
stances would be inevitable, and in order to make
way for other arrangements, Mr. Itotheiham be re-
quested to retire from the direction." Now, if the
proprietors were informed at this early period of
the state of affairs, would they have allowed mat-
ters to reach the culminating point 'f losing all
their capital, and having calls to pay besides ? No
man of common sense would have done so. So far

from giving any information, however, to the share-
holders, a resolution was passed actually to burke
all information. There was then a minute that all
advances should be limited to £20,000, but this
was found so inconvenient that it was rescinded in
1853. Why? Because it had been transgressed
to an enormous extent. On November 20, 1856,
there was a minute, " That no open; accounts
should exceed £lO,OOO, except the following," ant
then followed a list of gentlemen, comprising some
hundreds of thousands of pounds, every one of
whom had failed. (Cries of " Name, name.") Mr.
Moore did not think it necessary to name them at
present, though if it were desirable afterwards he
would do so. Having noticed the fact that the
original founders of the bank, widely awake to the
course which was being pursued, left it in 1846,
Mr. Moore complained that accounts were carried
forward year after year as good, when the direc-
tors must have been aware that they were utterly
worthless. The account of Stockdale, Who failed in
1846, was not written off until 1856. (Disappro-
bation.) Next citing a few instances of the " good
management" as to securities, Mr. Moore stated
that the first was an advance of £28,078 to a brewer,
the security being a lease which was worse than
worthless. Next, £34,600 to a person never worthy
of credit for a tithe of the amount ; next, £34.598,
no security ; next, £33,000, security £6,800, but not
worth anything of the-kind ; next, £44,247, inte-
rest on this account being charged to the end of
1854 ; when, to mend matters, the directors paid up
other debts belonging to this individual, in order to
get the management into their own hands ; next,
£29,174, security utterly worthless ; next, £44,859
to a surgeon whose gallipots were quite as good a
security as that offered. (Laughter.) Next, £47,183,
upon the deeds of ironworks not worth half the
money. The Doherty and De Wolff accounts he
passed over as too well known already. Next was
a mortgage on land, 17,609 yards, at £3 and £4 per
pard. In 1854 this was debited in the accounts
£13,000, but it had since gone on increasing by the
accumulation of interest until it had. now reached
£17,000. Having enumerated other accounts in
which the value of the securities bore a similar
proportion to the advances, Mr. Moore men-
tioned that the case of Eccles stood in
the accounts at 'X316,654, and that the
balances of another firm—three firms under
one head—amounted, in 1854, to £214,311; in 1855,
to £221,722 ; in 1856, to £311,912 ; in 1857, to
.£324,319 ; the balance, when the bank closed, being
£317,160. Now, he (Mr. Moore) could show that
the directors knew the position of these accounts as
early as 1854, and, notwithstanding this, they kept
increasing the accounts in one case to the extent of
£86,000, after they had received a warning from
one of the parties as to his dangerous position. Mr.
Moore hero read passages from various letters of
creditors and customers to the bank in support of
his statements. He next alluded to the " bad and
ruinous" system of re-discounting. It commenced
in 1853. And why ? Because the bank was in
straits and wanted money, It went on increasing