The Sun.
London, England, 1857-11-19 00:00:00

LONDON, THURSDAY EVENING, NOVEMBER 19, 1857.

l.iiE BANK clans IN GLASGOW.

On Tuesday "a meeting of the noblemen, land-
owners, merchants, and manufacturers connected
with the west of Scotland," was held in the Mer-
chants' Hall, Glasgow-, to consider the present
financial crisis, to express their confidence in the
Scotch banks, and to determine how the existing
difficulties may b 3 best met, and public confidence
restored. The Hall was densely crowded, and hun-
dreds were unable to obtain admission for want of
room. On the platform Vlore were a number of no-
blemen and influential gentlemen connected with
the west of Scotland, and a large array of the lead-
ing commercial men of Glasgow.
On the motion of the LORD PROVOST, the Duke
of Hamilton took the chair amidst great applause.
The Duke of MONTROSE moved the first resolu-
tion as follows That this meeting has full con•
fidence in the system of banking which has been
maintained in Scotland for a long period of years,
during which the country has made most rapid ad-
vances in prosperity ; a confidence confirmed by
the events of the last ten days—events -which prove
beyond all doubt the general stability of the banks
although two, and two only, have yielded to the
pressure, a pressure aggravated by want of that
confidence which is necessary for carrying on the
ordinary dealings of trade.' " His Grace said :—I
think that all those who are connected with busi-

ness, and who have consequently transacted busi-
ness wick the banks, and know the mode in which
that is carried on, must be sensible of the great ad-
vantages derived by this country from the system
of credit and banking in existence among us. But
for the banking system, the business of this great
town, and the matrefactuoing and-trading interests
of the community, could not have been carried on
to the extent to which they have been carried on,
and to which we must all wish them to be carried
on. (Cheers.) I therefore think that at a moment
when distrust has been created from various cir-
cumstances in the banks themselves, and when also
a very large number of persons, at least in England
hold that the system of banking in Scotland is
not sound, and that the system of Scotch bank notes
is not a proper one, and would wish to make great
changes,in that circulation and system of,:banking
—in these circumstances, I think it is right that
we should come forward and state that on the
whole we are perfectly satisfied with it, and believe
that great dangers and evils would accrue to the
country if any great change were to take place.
(Cheers.) The noble duke concluded by again
reading and proposing the adoption of the resolu-
tion, and sat down amidst great applause.
Sir JAs. FERGUSSON s.:conded, and Mr. BAILLIE
CocuitArts supported, the resolution, which was
carried unanimously, as were the others proposed.
Lord BELHAVEN proposed the second resolution:
That this meeting deeply regrets the embarass,
merit of trade and public loss which would arise
from the final stoppage of the two banks which
have been obliged to suspend payment; and, be-
lieving them to have ample resources ultimately to
meet in full every claim upon them, resolves to as-
sist their proprietors and directors in gaining time
for arrangement of their affairs by joining in the
resolution so well taken by 300 firms iu Glasgow,
and, like them, individually pledge themselves to
accept payment of rent and claims in the notes of
the Western and City Banks." His lordship stated
to the meeting, as coming within his own know-

ledge, that he had seen no gilitleman, no indivi-
duals in hh own neighbourhood, or within the
county, who had not unanimously come forward
and desired that the notes of the two banks referred
to should be taken in payment of rents and every-

thing. The noble duke who occupied the chair, at
the moment he heard of the stoppage of the West-
ern Bank, sent word to all his ag-nts, desiring that
his!rent, at this time, might be taken either in notes
or deposit-receipts of these banks. (Loud cheers.
_ _

Sir MICIIAEL. S. STEWART vcondes I the resolu-

tion. He said—l have already acted upon the
spirit of the resolution. (Cheers.) I have already
received rents paid in notes of the Western and
City of Glasgow Banks, and, of course, I shall
continue to do so. But I do not want to make
any boast in saying this, because it does not depend
so much upon the landlords and others whether
they receive the notes as whether the other banks
will take them. (Hear.) S 3 long as the banks act
in the way they are doing at present, I think there
nerd be no fear of landlords and others declining
to receive Western and City of Glasgow Bank notes.
Mr. WALTER BUCHANAN, M.P., said :—I think,
in a question involving the principles of confidence,
it is of the utmost importance that all classes should
oufnti
hteosteo
evilsex peussnadsetr wronhgiuh feelingwearre a
egatrdpirnegsetuhte causes
suffer-
ing, and it certainly is
peculiarly appropriate that
gentlemen connected with the land, and the landed
aristocracy of the country, should unite with the
mercantile interests in any question regarding
banks, because it is most certain that for fifty
years back the landed interests, as well as the com-
mercial interests of this country have been greatly
promoted by the institution of our Sewch banks.
But in a question of the present kind it is necessary
that there should be a united feeling and a unwed
expression of that feeling, and that we should
loudly proclaim our confidence in these establish-
ments. It is not a question among any of us whe-
ther any absolute risk of loss has been incurred.
We are merely met hero to endeavour to stem a
a headlong panic. The Western Bank, according
to the opinion of those who have most particularly
investigated its affairs, if it is to continue business,
can go on as firmly as before. It has still a million
of capital untouched—a million of capital as avail-
able for bank purposes as it ever was at any former
time—and then, in addition, it has a reserved fund,
subscribed by its wealthy and public-spirited pro-
oanr y
a,
nadinaomu tinl
ion g tmo sr
eo
.m wt hh
ea
rt e bfoertewseaeynt at
thef-a-
milliWestern Bank is in as good a poiition, if only
allowed a little time and a little patience on the
part of those who have claims upon it, to carry on
answer
the business which was formerly entrustedkingetsot
ai
bt
snd
e.
meat, as well as ever it did at any former period.
(lAo3ptpclaouosfie:i)encWo
ine dv
ietryy
f thereason
and its ability to pay every claim • to the last
have
eesolrene lßpa per-
fshilling
ect
the community that that bank should be rein-
IVetestef
; and I say that it will be for the benefit
state I as before, and remain a large part of the
banking system of our country as it hitherto has
done. (Applause.) I would wish to say the same
thing with regard to the City of Glasgow Bank.
That establishment it is not contended has had any
losses—it remains just as it was ; but it has been
overborne by a headlong torrent. These two estab-
l'shinents hare succumbed from mere accident. I
do think I am entitled to say that, placed in the
same circumstances, exposed to the same panic, there
is not one establishment in this city, there is not
ono of the chartered banks, there is not owe of the
joint-stock banks in London, and I believe not even
the Bank of England itself could have resisted the
pressure. Now, are we in a position to give up these
banks ? Because, by accident or caprice, circum-
stances have so fallen out that these two establish-
ments have succumbed, are they therefore to be
blotted out of our banking system ? I say most
assuredly no. (Applause.) Whether by fresh sub-
scriptions from the proprietary, whether by aid
from Government, by whatever means it is to be
done, it would be a grievous evil were these two
establishments not again to be reinstated.
Sir EDWARD COLEBROKE, Bart., M.P.,
moved :
" That a committee be appointed to watch the course
of events, and to take such steps as may be deemed
expedient to carry out the views of this meeting, the
said committee to consist of the Duke of Hamilton,
the Duke of Montrose, the Earl of Eg,linton, Lord
Belhaven, Sir M. S. Stewart, M.P., Sir E. Cole-
brooke, M.P., Sir J. Fergusson, Walter Buchanan,-
Esq., M.P. Peter Blackburn, Esq., M. P., with
power to add to their number." He said :—Our
deepest gratitude is due to those other banks and
to a very large portion of the community of Glas-
gow, who stood forward in the breach, and, with a
knowledge of the circumstances in which they were
placed, declared the alarm was unfounded, and
stated their willingness to take the notes. (Ap-
plause.) The credit of this country stands upon
the confidence of man in man. It is by standing
shoulder to shoulder that we shall stem this tor-
rent ; and I think the effect of this meeting will be
to show to the whole country-side that there is that
confident disposition among us to stand shoulder
to shoulder in putiug an cud to any slight,degree
of alarm that may continue to exist.
on
Tthhoi s
Duke
of
Sir A. ALISON proposed the cordial thanks of the
occasion.HAMlLTON(Greatap applause.)
returned thanks, and
meeting to the Duke of Hamilton for his conduct
the proceedings terminated.

GLASGOW, WENESDAY.
in A meeting of the depositors was held here to-day
the Trades-hall, which was crowded to suffoca-
tion ; Eir James Ferguson, of Kirkerran, presided.
Mr. FLEMING, the interim manager, stated that
from a rough calculation made on the 6th of Novem-
ber, the entire liabilities of the bank amounted to
7,671,6411., and the assets to 9,398,1841. It was
resolved that the bank should be empowered to ro

some businesQ, and it was agreed that the transfer
o. f shares should be closed till the annual meeting
and to pay the whole of such sums as soon as In June, 1860 ; that as soon as business was re-
surnerl the directors should be authorised to pay
10/ to account on all deposits not exceeding 501.,
n
pos-
sible after January (these small deposits amount to
half a million) ; that the interest on all deposits
should be paid up to the 9th of November current ;
that the directors should have a discretionary power
of allowing operations on current deposit accounts
with patties engaged in business ; that, subject to
these restrictions, all deposits above 501. should re-
main in the bank for two years at an interest of 5
per cent. ; and that means should be taken to
render these deposits available as a fund of credit
to depositors.

TIDO SUSPENSION OF THE WOLFER-
IIAMPTON AND STAFFORDSHIRE
BANK.

WOLVERHAMPTON, WEDNESDAY EVENING.
There has been a more quiet day at Wolverhamp-
ton ; to a great extent the excitement had subsided.
Early in the morning it was known that three of the
directors of the bank (Messrs. Briscoe, Tarratt, and
Elwell) had gone to London, taking with them the
private securities of their estates, for the purpose of
seeking assistance from the Bank of England. Up
to a late hour in the afternoon no reply had been
received. It i4to be hoped, however, that it will
be favourable, and that the bank may be re-opened.
A measure of that kind would bathe means of avert-
ing a large amount of mischief, for certainly the
present is the most severe blow this district has ever
received. The amount of assistance sought from
the Bank of England is said to. be 100,0001.
In the course of the day the circumstances in
connection with the stoppage of the bank were very
much discussed, and as generally condemned. Some
of the directors are understood to have dissented
from this proceeding, bu t the majority, though well-
intentioned, were too timid for so heavy au emer-
gency. The stoppage is the more to be deplored,
not only because of the immediate mischief, which
is irreparable, but because of the bad impression it
is calculated to create in reference to the credit of
the district.

Various means have been suggested by which the
difficulty may be met, but up to 5 o'clock nothing
had been decided upon. It has been suggested
that a meeting of the depositors should be called,
and if possible some pledge should be obtained
from- them to let their deposits rest for the present.
If anything of this kind can be done, it would
greatly help to free the matter from embarrassment.
For other purposes, it is not improbable that as-
sistance might be obtained by the aid of parties
who, on public grounds, are largely interested in
the maintenance of the credit of the district.

This morning an adjourned meeting of the Cham-
ber of Commerce was held. A good deal of discus-
sion took place as to the best course to be pursued.
The conduct of the directors of the bank in sus-
pending business with so much precipitation was
very much and not favourably commented upon ;
but any specific resolution on the subject was de-
ferred. The propriety of an application to the
Bank of England for the establishment of a branch
in Wolverhampton was spoken of, but no definite
action was taken on this subject, and the chamber
adjourned until Friday.
The liabilities of the bank in deposits and credit
balances have been estimated at 450,0001. ; and on
bills under discount at from 250,000/. to 300,0001.
The assets are said to be larger than these two
amounts, but their yield must very much depend on
the circumstances under which the securities are
realised, and under which engagements are met.
Unless the bank re-opens, a great number of the
small tradesmen who have credit balances will suffer
very greatly.
Wednesday is market day at Wolverhampton,
and a great number of country people were in the
town to-day, but there has been no further run
upon the other banks, and the shopkeepers continue
to take the notes of the Wolverhampton and Staf-
fordshire Company.
The most perfect quiet prevails both in Wolver-
hampton and throughout tke district, and although
the labour market must suffer considerably, the
population of this district is generally so orderly
and well disposed, and on the part of the employers
so strong a disposition to meet the difficulty in that
respect with as much liberality as circumstances
will permit, that it is hoped a disposition to pre-
serve order will actuate all parties.
The Right Hon. C. P. Villiers, M.P. for the
borough arrived in town this morning.

(Front the Wolverhampton. Chronicle of yesterday.)
For some time past, as might have been expected
from the position of the trade of the district, the
bank was pressed to extend its discounts. It did
so, and, unfortunately as it has proved, beyond its
available means. It gave assistance, unluckily, with
too little prudence and too great liberality. Early
last week a great deal of uneasiness was excited in
the minds of the directors by the discovery of the
fact that an undue amount of accommodation had,
unknown to the general body, been afforded to
certain parties who would not otherwise have re-
ceived it. On Thursday it was deemed prudent, as
a matter of precaution, to decline discounting alto-
gether, and this fact naturally originated rumours
of pressure having fallen upon the bank. Urgent
applications were made, but the directors did not
feel themselves at liberty to comply with them.
On Friday and Saturday these applications were
renewed, but • circumstances on the latter day had
rendered any adequate compliance with them a
matter of impossibility, as a very large amount of
acceptances bearing the bank's endorsement were
returned. An application for assistance had been
made to the Bank of England, had been complied
with, but it was found insufficient. On Friday and
Saturday rumours of the difficulty began to creep
abroad, although in commercial circles the position
in which the bank was likely to find itself placed,
owing to the returned bills, was pretty well known.
On Saturday evening many persons declined to
take its notes. Throughout Sunday hopes were en •
tertained that it might, by obtaining further assist-
ance, be able still succcessfully to encounter the dif
ficulties of its position. This assistance, however,
was unattainable, and the feeling of alarm having
spread, the result was such a heavy withdrawal of
deposits on Monday as placed all hope of a success •
ful struggle with the difficulty, in the present state
of the money market, beyond expectation. We
understand that a deputation is now in London. for
the purpose of laying the particulars of the case
before the directors of the Bank of England, with
the view of obtaining such assistance as may el-table
the bank at once to resume business. Upon the
success of the deputation we cannot venture to
speculate ; but we hope that when the very serious
consequences likely to follow upon the continued
suspension, and the thorough security with which
it may be afforded, are placed before them, that it
will not be withheld.