The Sun.
London, England, 1866-07-14 00:00:00

Stoppage of the Birmingham Banking
Company.

BIRMINGHAM, Friday Night.

Just now, nearly midnight, it has been determined
that the Birmingham Banking Company will not
open its doors to-morrow. It had three-fourths of
all the accounts of the greatest of the trading com-
munity of this district. To say that is to give some
idea of the frightful results which must ensue from
this calamity.
At this late hour we cannot enter into details of
the circumstances which have led to this disaster. It
has arisen out of the lavish advances made a few
years since to one individual in particular and to
many engaged in the iron trade. The subjoined let-
ter from the general manager contains the only par-
ticulars of this fearful disaster which we can give at
this moment :

"TO THE SHAREHOLDERS OF THE BIRMINGHAM BANKING

003IPANY.

"Gentlemen,—By order of your directors it becomes my
painful duty to inform you that owing to gross past mis-
management recently discovered, they' have sustained
heavy losses, and a large amount of capital has been locked
up in securities that for a time cannot:be realised.' 'Under
these circumstances your directors have been compelled to
close the bank. Whilo expressing deep sympathy with
creditors, it is not necessary for me to say anything more
than their claims are perfectly safe, but to you I am autho-
rised to say that in all probability it will prove 'that al-
though the whole of the reserve fund Is lost, a portion of
the paid-up capital will remain if the estate is realised with
care and economy.—I am, gentlemen, your obedient ser-
vant, "Tilos. SHAW, Manager.'

The amount of the deposits is about £806,000.
Probably the total liabilities are over £2,000,000.
The number of shareholders exceeds 800. The
company was established in 1829 ; its paid-up capi-
tal at this moment is a little short of £280,000.
Contingent depreciations and reserve fund at
the last report in February, £200,000. They are
£2O shares, paid up, but
,on the original shares
no more than £4 3s. 4d. has been paid up. The
dividend and bonus of late years has been £2
per share annually. Less than two years since the
capital was increased by the issue of 10,000 new
shares of '2lO, paid up, at £lO per share
premium. At that time the price 04 the shares
was 14. Within the last few months a gra-
dual decline has taken place. Yesterday the
shares suddenly ran down to 20 ; to-day it
began to be talked about that all was over,
but very few people believed it. The shares
were sold at 18 in the course of the day.
The stoppage of Attwood and Spooner's Bank was
as nothing compared with what this must be.
There has been a co oference among the other bankers
in the town to-night and they are well prepared for
to-morrow, but the scene there will be in town is
something fearful to contemplate. The following
circular has been prepared :
The undermentioned banks, desirous of alleviating as
much as possible the effects of the stoppage of the Bir-
mingham Banking Company, are prepared to afford facili-
ties for supplying the immediate necessities of the deposi-
tors and customers of the bank :—Birmingham Town and
District Bank, Birmingham and Midland Bank, Birming-
ham Joint S took Bank(limited), Lloyd's Banking Company
(limited), National Provincial Bank of England."