The Sun.
London, England, 1857-11-28 00:00:00

it is not a part of the resolution to which I am
called to speak, it might be well to say how much
we sympathise with all the different parties in-
volved in the present crisis—how much. we sympa•
thise with the depositors who have their money
locked up in these banks—how much we sympa-
th'se with the unfortunate shareholders of these
banks, many of them ladies, and many of them
trustees for children—how much we sympathise
with all these, it is imposible we can express. But
we have also to acknowledge that there has been
gross mismanagement by one of the managers of
these banks. I am sure that circumstances will
come to light with regard to the management of
one of the managers which are perfectly astound-
ing. But with that we have not to do just now. I
cannot agree with Sheriff Steele, nor with the
papers, that we should reprobate the conduct of
the chartered banks in Edinburgh. I think these
banks will be prepared to do whatever is right
whenever they see themselves safe. I cannot for
one moment believe that these banks would wish to
put down either the City or Western Banks of
Glasgow if they saw any means of carrying them on.
I believe that to the chartered banks of Edinburgh
and the other banks in Glasgow we shall bo in-
debted forstaking up a large amount of the accounts
of the City of Glasgow and the Wester u Banks, for
giving facilities to an immense number of firms for
carrying ou their business, which otherwise they
would not have had ; and I do not think we ought
to blame rashly establishments which have main-
tained their credit in Glasgow, which give immense
facilities to the business both mercantile and menu-
facturing of the city. I do not think we should
blame in the way they have been blamed. I trust,
although my sentiments on the subject may per-
haps be different from many expreised out of doors,
that they are honest and fair sentiments, and I am
sure you will agree with me in thinking that so far
as the public generally are concerned we are much
indebted to the chartered and other banks. (Hisses
and c':eering.) Gentlemen, I have to state one
other point. When I heard of a run upon the banks
in Glasgow and throughout the country generally I
blushed for my fellow-countrymen, and I will tell
you why I did so. In Scotland, during the last 8J
years, we have had the suspension of the following
banks :—The Ayr Bank, trading under the firm of
Douglas, Heron, and Co., established in 1769, and
suspended in 1772, with only 128,001/. capital paid
up—its creditors paid in full. The Dunbar or East
Lothian Bank suspended in 1820. Its creditors
were paid in full. The Falkirk Banking Company,
with only five partners, established in 1789, and
suspeuded in 1816. This was not properly a bank-
ing establishment. It was rather a company formed,
consisting of five persons, for the purpose of deal-
ing in cattle •, and although they went under the
name of the Falkirk Banking Company they were
not properly a bank. The public lost by that bank
25,0001. The Fife or Cupar Bank, established in
1802, with 29 partners, suspended in 1825—the
public suffered no to s. The Stirling Banking Com-
pany, established in 1777, suspended about 1825,
and the public were paid in full. These facts could
not be known to the public generally, but I be-
lieve the fact was known generally that the public
had never sustained any loss by any bank in Scot-
lany, except the Renfrew. (Applause. A Voice,
" Watson's Bank.") Watson's Bank was not a
bank of issue. It was more a discounting house,
and it is, therefore, different from banks receiving
deposits and issuing notes. Another gentleman
suggests the Aberdeen Bank. No doubt it was a
total failure so far as the partners were con-
cerned ; but the public never lost anything.
' Now, gentlemen, with these facts before
and, recollect this, with the proprietary of the
various banks here, whose names aro published an-
nually, the public should know that with such au
amount of property, with such wealth in the list of
the shareholders, even under anything like ordinary
mismanagement, they cannot suffer, howevermuch
the shareholders may, lam confident that what-
ever may be the result depositors in the two banks
now in course of suspension will suffer no loss—
that every farthing they owe will .be paid. (Ap-
plause.) They only point now is to nominate the
committee to proceed as a deputation to London.
The hon. gentleman then proposed.
The Lord Provost, the Dean of Guild, Bailie
Olouston, Dean of Faculty, Morrison Mr. Hugh
Tennant, of Well-park, and Mr. Robert Napier,
WILLI poweL tun .-2,1 4 4,1,01'. =au...b.,
Bailie IVl‘Ctennoos seconded the motion, and it
was unanimously adopted.
Mr. BUCHANAN, M.P., said—lt is my pleasing
duty to ask you to join in a very hearty vote of
thanks to the Lord Provost fur his conduct in the
chair. It is one of the first occasions on which he
has met a large body of his fellow-citizens, and I
am sure the manner in which he has conducted this
meeting is a good augury for his career as Lord
Provost. (Applause.)
The meeting then separated.

featly free from the influence of any bank connec-
tion whatever, being neither a shareholder nor di-
rector in any bank whatever. But I consider it my
duty, as I consider it to le) the duty of every indi-
vidual who has the prosperity of the city at heart,
and has the wish not only to see that prosperity
conlinued, bufethat it should make progress as in
, times past, to' came forward in the hour of need,
eena with a helping hand endeavour to avert the
evil alluded to in the second resolution as likely
to come upon us by the continued closing up of
the Western and City banks. The resolution just
proposed by Mr. Smith, in the first place, refers
to the ultimate security of the creditors of these
banks. I feel satisfied that in such a meeting
as this it would be presumption and waste
of time to state anything in reference to
the security of the banks, for I believe that neither
among us nor around us has the opinion ever been
hazarded that there is the least possible chance of
loss to any of the creditors of either bank. (Cheers.)
But, while, there can be no ultimate loss either to
depositors or other creditors, I cannot hide from
myself the effect of the serious inconvenience and
loss which must result to these creditors, whether
in the shape of depositors with their funds locked
up, or other creditors with claims which they can-
not make available. • That would be a calamity
involving not only these creditors, but the whole
of this vast community in which we dwell, and also
a calamity reaching to the whole manufacturing
and agricultural districts of Scotland. Seeing, then,
that such -evils are likely to ensue upon the con-
tinued close of these banks, how are they to be
averted ? This, I think, seems to be answered in
the second part of this resolution, which speaks of
the restoration of public confidence by the liberal
support, of the other great banking concerns. From
what we have seen of'late of the manner in which
our highest mercantile houses have been obliged to
succumb, I believe that there has been a feeling of
commiseration, from man to man, through the
whole community, which leaves no doubt as to
what will result from the consideration of the cre-
ditors of these two banks ; and that, so far as they
are concerned, they will give them their best sup-
port. With respect to the other creditors, the great
banking concerns, holding securities for which they
are liable, lam not here to attribute blame ; for,
if this were to be done, I fear we must come nearer
home ; but I would most respectfully urge that we
should go to these banks, whether in Scotland or
England-whether directly or by memorial, and to
her Majesty's Government, and there state the case
candidly and fairly, show the real position of the
banks, what their liabilities are, what their assets
are, and what their losses-(hear)--and L do think
we are in a somewhat anomalous position from such
details having been given. (Hear.) With these
remarks, I beg to second the resolution proposed
, by Mr. Smith.
The resolution was put from the chair, and car-
ried with applause.
Mr. DALGLISH, M.P., who was received with
loud cheering, said,-Gentlemen, before proceed-
ing to address you, I have to apologise for Mr.
Buchanan and myself coming in half an hour too
late to-day. I am sure you will forgive us when I
tell you that we have been engaged since half-past
10 on most important business connected with the
banks. (Applause.) I have to apologise also to
' you should I fail iu making myself sufficiently clear
upon the present occasion, because I candidly tell
you that I intended to devote the three hours I
have devoted to other purposes to arrange in some
way what I should say to you now. The resolution
which I have now to propose is as follows :- •
" That her Majesty's Government ought to be made
acquainted with the present critical position of the mer-
cantile interests in Scotland, and solicited to take such
steps as shall scorn most expedient for averting so touch
suffering and loss to the nation ; and for that purpose the
following deputation be appointed to proceed to London to
communicate with the First Lord of the Treasury and the
Ciancellor of the Exchequer."
Perhaps the most important subject which arises
out of the late financial crisis in Glasgow is the con-
sideration
as to the number of people who will be
deprived of the means of earning their livelihood.
It is impossible that such a mercantile crisis should
have occurred under any circumstances, much less
under the circumstances at present, without many
people being thrown out of employment ; and
although I would not be prepared to go forward to
Government and ask than, for any assistance to re-
establish our banks, I think we have a fair claim
upon Government to render thorn assistance, if no-
ce:,sary, to maintain or to feed our people. (Ap-
plause.) Perhaps one of the greatest difficulties
arising from the present shutting up of the City of
Glasgow and Western Banks is the difficulty
many concerns carrying on a large business
have to raise the necessary means, the sources
from which they derived their supply being now
stopped. I have no doubt the chartered banks
and the other banks in Glasgow will do their
best to afford the means to all solvent houses
to carry on as far as lies in their power ; but there
will certainly be other concerns-whether houses MEETING OF BENNOCH, TWENTYMAN, AND
employing labour, or shopkeepers, or other people RIGG'S CREDITORS.
doing with bills in Glasgow-which will xt it have
the facility of acquiring this assistance from other Yesterday a meeting of Messrs. Bennoch, Twentyman,
bands, and who will have to look forward to certain and Rigg's creditors was held at the Guildhall Coffee-
evils in the conduct of their business. Our respected
friend Mr. Smith has told us what happened in house, for the purpose of receiving a balance-sheet, and
the last century, now I can tell you what happened considering the general affairs of the firm. The meeting
in this. En 1826, at a period of deep distress in was very numerously attended ; upwards of 60 persons
G`asgovvr when the banks in England-I think to being present. At first there was difficulty in obtaining
the number of 125-had suspended payment, a de- a chairman, several gentlemen who were put in nonii-
putation went from Glasgow to London, saw the nation, including Mr. Eaton, one of the largest creditors,
then Prime Minister of the Government, and after having declined to act in that capacity. Ultimately
consultation secured a grant of a large sum of Mr. Foster, a cash creditor, accepted the office.
money. This grant of money was put in the hands Mr. P.A.RRINTON, of the firm of Parrinton, Eastbury,
of a committee of three merchants in Glasgow, of
(Applause.) and Co., accountants, read the balance-sheet, as follows:
whom my father was the chairman.
With this money they got goods from different --Drs.: To creditors, as per list, 167,552/ 5s 10d ;
manufacturers, audthey assisted other classes of the less securities hell by them, 6,72215 s 31-160,830/ Os
community with loans, taking such security as they 7d. (fn the above claims 50,9501 lie 9d is included
thought fit ; and they managed this fund so that depreciation in the value of silk in the hands of the
innumerable houses in Glasgow were prevented brokers.) To bills accepted for consignors, 99,663/ 18s
from suspending business, and were enabled to 9d ; less bills fully or partly secured by goods on hand,
carry it on as to supply the people they were accus- 62,6801 13e 63-36,9831 53 31; to liabilities on bills
tomed to employ in work. (Applause.) And I have receivable discounted considered good, 127,5111 14s
further to state that this was managed with the 10d ; ditto bad, 23,5471 64 lld ; less security held on
most trifling-perhaps, I may almost say, without account thereof, 550/-22,997/ 6s 11d; liabilities on
loss at all .Co Government or to the country. I be uarant
aes ienf rse lacott o. fewehdiic ho :at iosf consideredLtahvearte
awiidl
think that, having such a precedent before us, we Gould
may safely go forward to the Government and ask da!l:hose debts Messrs. t
Bennoch, Tswes.ntyman, t and
Rigg have undertaken to pay, 33,8841 3s 21 ; total,
them, if funds should be necessary, that they should 257,6941 153 11d. By stock in trade in London and
afford us some assistance-some means, in our pre- Manchester, cost 65,7681 5i 83, estimated at 39,1951
sent state, to carry on the business of our large 18s 41 ; book debts, good, 41,3471 5i 23 ; less debts
manufacturing concerns. But, gentlemen, that on consignors' account, 10,1911 Oa ld-31,1561 5s ld ;
would be a last result. I hold that there is suffi- book debts, doubtful and bad. 16,2671 183 Id, estimated
cient wealth-that there is sufficient business talent at 5,0571 15s 41 ; bills receivable on hand, 7,2481 7s ;
in the city of Glasgow to get ever our present diffi- less portion due to consignors, 4351 13s 91-6,812/ 13s
3d ; cash in hand and at bankers, 8741 13s 43 ; by
culties without any application to Government.
cash at bankers, 2,028/ 164 4cl; deducted from their
(Great applause.) All that we now want is a resto-claim of 5,0001; fixtures at Manchester, 1541; furei-
ration of confidence, and that restoration of con-
fidence will place us on a fair and proper foot- tbure, &c,
dat Wood-street, 3001; shipmentsto t40111012e11-
so4ulrinde,.
subject to
advances
ks
ing. I was absent on the Continent when the and " amounting
claimsthereon,
great crisis occurred, but the details which I 10, Id-23,88571 15s 10d; estimated at 12,7941 8s 3d ;
have received since I returned lead me to value of shares, 1001; securities deposited with credi-
make one or two remarks. The learned Sheriff tore and deducted per contra, 6,72215 s 3d ; leases and
has given his opinion of the Act of 1844. The Act fixtures of premises, 77 and 78, Wood.street, and land
of 1844 may have many objections urged against in Silver-street, 1,4001; stock, book debts, utensils in
it, but I think there is one objection which must trade, furniture, &c., of Messrs. Lovett and Gould,
of Leek, 4,3821 lie 7d; equity of redemption in free-
occur to you all, which is a fatal objection-viz.,
hold land and will of Messrs. Lovett and Gould, subject
that whenever the Act begins to act, then it is
to mortgage of 10,0001, 102,2281 54 2d, less rent, sala-
obliged to be suspended. (Applause.) I would like
s. &c. 781/11s 8d -total, 101,446/ 13s 63; deficiency,
to make one or two remarks with regard to the 11E6,248/ 2s sd. *
Act in one particular case. Before I left home it Mr. Parrinton added to this statement the remark
was stated that certain large houses were in diffi- that the firma commenced business in 1848, Mr. Ben-
culties. It was stated that the Messrs. Macdonald noch having a capital of 1,457/ ; Mr. Twenty-
were in great difficulties, that Messrs. John Mon- man, 2,1821., and Mr. Rigg, 5,7001., making together
teith and Co. were in great diffieelties, and that 9,410/. Toffs capital went on increasing year by year
the Western Bauk was very largely involved until it stood at 38,2471 on the 24th Dec. last. The mis-
with them. It proved that the report con- fortunee of failures had overtaken the firm through allow-
fleeting those houses with the Western Bank g paties to oraw upon them in respect of silk and
was true. Those houses were obliged to sus_ other goods, and becoming liable for the debts of Mheissrtso.
pond, and that created a considerable amount of _L,owtl.anTd
The two
oafthLeerek,r.aTiouaintlianegaeien the whole
had wresulted
distrust in the City of Glasgow. Deputations, as "
failuret wet? two firma, one in Derby the other
I understand, went to London, represented the
in
evil effects that would follow if the distrust con- Coventry. In 1846 the firm of Reid anndeidCoa.f
that
established at Derby. It consisted of Mr.
tinned, and urged upon the Government or the place, who put in 8,0001, and of Messrs. Bennoch and
Bank of England to do something to relieve the Twentyman, who put in 5,000/. The firm of Bennoch,
state of the money market. The Government re- Twentyman, and Rigg had been drawn OD by this Derndby
fused. On Monday, the 19th Nov., the failure of house to the extent of 32A31, but the goods consige
Messrs. Dennistoun occurred, one of our largest were was a
more than 14,278/, and here, therefore,
and most respectable firms. It is right to draw a there was a loss of 18,2781: In 1856 the firm of Taylor
anal Co. was established at Coventry with a capital of
distinction here. The suspension of the Messrs.
4,000/. Bennoch, Twentyman, and Rigg had been drawn
Dennistoun did not arise from a course of over-
upon by this house for 18,7501, but the goods consigned
trading without sufficient capital like the others-it
were now only worth 11,961/. The Coventry firm were
arose from the bankruptcy of a nation-from the also cash debtors of the London house to the extent of
total failure of the whole American people to pay 10,637/, and the loss by the Coventry firm was put down
Bennoch
banks. debts. (Great cheering.) The suspension of at 17,4271.
Messrs. Dennistoun led to a general run upon the mr.R7s/.
solicitor, representing Messrsg
banks. The Western Bank shut their doors, the and Co., stated that in consequence of the serious rnendoa
City of Glasgow Bank shut their doors. The Union tion in the present value of the assets, Messrs. Bennoch,
ceh
.
were able to withstand that run, and to it I think- Twentyman, and Rigg were unable to propose any offer
belongs the merit of having saved' the banking syse of compensation which would be safe for themselves and
tem of Scotland. (Great applause.) Gentlemer,, at the same time satisfactory to their creditors, and
from the magnitude of the liabilities it was doubtful
what was the result ? Did the Government relax
whether they could find an adequate guarantee, even if
the Act of 18441 The Government did not relax
the Act of 1844 for Scotland, but within ten days, the creditors assented to a composition ; that, with the
hope of securinga tall
ht
t events, and
c a greatero
reditr
ore the
he present value of
when the thing came nearer home-when the Lc ne-
their assets
don large establishments were falling-when one. of dividend than is
amtepsresent shown should a better state of things ensue,
their largest bill-discounting houses broke-when
undersh should give
others were in difficulties-then the Governmentpeen:tie,
,enh and dCo. proposed to realise their estate
the usual way, but that the creditors
saw fit to relax. (Great excitement.) Gove,rnmeeet give power to the
.insfectors, when the estate
sacrificed Glasgow, but saved London. Then thee' shall have been brought within smaller compass by re-
saw the evils of the Act of 1844, PerhaP4, although elhation and the payment of a certain amount °Vivi-