The Sun.
London, England, 1859-05-20 00:00:00

THE WESTERN BANK OF LONDON.

A meeting of the Western Bank of London was
held yesterday, Mr. Roebuck, M.P., presiding,
when the agreement for the transfer of the busi-
ness of the bank to the London and County was
approved, and resolutions were passed for winding
up. A long and stormy discussion took place, but
the facts elicited can be comprised within a narrow
compass. It appeared that the auditors had made
certain allegations against the manager and had
requested his suspension. This the directors acceded
to chiefly, as they allege, from compulsion, and the
circumstance becoming known was circulated with
a variety of exaggerations. The result was a
withdrawal of public confidence, and consequently
a gradual but steady reduction in the balances and
deposits, a falling off of 18 per cent. having occurred
between the Ist of March and the 30th of April. It
became necessary to take immediate steps to dispose
.of the business before its entire value was lost, and
a transfer to the London and County was accord-
ingly arranged. The directors, after a full and
complete investigation, have come to the unanimous
opinion that the charges against the manager are
groundless. A:cording to the accountant employed
by the board, the assets are sufficient to pay all
creditors, and to return £4O of the £5O per share
paid up. An instalment of £l5 is expected to be
divided in August. The ultimate loss is thus
stated at £40,000, of which about £2o,ooorarises in
the realisation of stock, &c. The auditors, who
have carefully examined the books, estimate the
total deficiency at £50,000. The unfortunate
termination of the career of the bank was charged
on the one side to general mismanagement, and on
the other to the alleged intemperate conduct of the
auditors. Notice was drawn to the large amount of
overdue bills, promissory notes, and overdraughts
on current account. Annexed is the balance
sheet :

WESTERN BANK OF LONDON.
BALANCE-SHEET, MAY 17, 1859.
DR.
To Liabilities : s. d.
To London and County Bank .. 83,888 7 3
To sundry creditors 3,108 6 2
To contingencies .. .. 5,000 0 0
To Bank of London loan, secured by deposit
of New Three per Cent. Stock and Rail-
way Debenture Bonds .. .. 30,000 0 0
To Thomas Gibbes and Son loan, secured •
by deposit of Consols .. 40,000 0 0

160,996 13 5
To balance surplus to meet debts other than
on share capital 191,953 11 0

352,950 5 5

To shareholders' capital paid up .. .. 200,000 0 0
Cu.
By Assets, viz. : S. 43.
By Government Securities, £83,16'7 ss, 2d.,
cost .. 79,832 13 0
whereof there is deposited as security for
loans, with the Bank of London, £30,000
stock, and with Messrs. Gibbes and Son
£45,000 stock.
By Railway Debenture Bonds .. 20,000 0 0
falling due on or before Ist of August
next, deposited with the Bank of London.
By bills discounted current • • .. 103,267 1. 6
By promissory-notes ditto 68,097 17 8
By loans on security • • • • .. 20,620 0 0
By bank premises, furniture, tte. (sold for
£28,350) .. • • • • .. 30,418 13 9
By stamps and check-books • • • • 170 4 9
By bills discounted past due • • .. 9,492 14 0
By promissory-notes ditto .. 15,850 3 6
By overdraughts on current accounts .. 8,240 16 3

Subject to realization .. .. 352,950 4 5

By surplus per contra .. .. .. 191,953 11 0
.By balance deficiency .. .. .. 8,046 9 0
to nieet share capital, which will be in-
creased by the loss sustained on realiza-
tion of the assets. -,
200,000 0 0

STATEMENT ACCOUNTING FOR DEFICIENCY,
MAY 17, 1859.
Dn. s. d.
To shareholders' capital paid up .. 200,000 0 0
To reserve fund . . 2,243 16 0
To profit and loss, undivided 1,176 17 5
To inttrest received .. 5,071 11 9
To ditto, suspense account . • 398 1 9
To ditto on investments 1,344 10 9
To commission 14 6 9
•• •• ••

CR.
By surplus assets, per balance sheet
By preliminary expenses ..

210,249 3 5
8. d.
.. 191,953 11 0
.. 10,500 0 0

202,453 11 0
By interest paid • • 1318 8 2
By charges •
• • •
. . 1,477 4 3
By contingencies (included "in 5,000