The Sun.
London, England, 1857-03-26 00:00:00

The Commissioner overruled his objection.
Mr. Linklater raad the letter, which was as fc
lows :

" Private.

"Tulse-hill, Jan. 11, 1854.
(Should be 1855.)
Dear Sir,—l was much surprised to hear from lay son
that you refused to di,couat buy bills for us. I beg to t-11
you el only that it is absolutely necessary that you should
continue to discount such bills as we receive from per-
sons who owe us the money, not, only to prevent us
stopping payment, but for the safety of the bank itself,
which must tall if the governor and two of the directors
fail, with whom will also stop six or seven other persons
connected with the bank. You are not acting the part
of a prudent man of business in thus stopping us in our
energetic course of gradually liquidating and withdraw-
ing the bills from the bank, which cannot possibly be
done without us having sufficient time to realise our
assets. Perhaps you are not aware that we have already
paid this month between 30,0001. and 40,0001. bills held
by the bank, and between this and Monday shalt pay
about 2,0001. more, thus gradually but continually les-
sening the amount of paper in the bank's heeds (I do not
reckon what has been done for Mr. H. Brown, as the
bank bolds the securities), but it must be a work of timee
and cannot be done without the bank's assistance in the
way of discounts; this is a positive fact; and if you
ri k the safety of the bank by refusing to discount, let
me know at once when we ourselves, Mr. Brown, Mr.
Cochrane, and four othees, must stop payment; for what?
Not forany anticipatod loss to the bank, but a refusal of
a sistance to allow us time to realise. Jut before you
commit this rash act, pray consider this, that you are po-
sitively benefiting, not injuring, the bank by discounting
for us, as otherwise the bills must come back to the bank.
2dly, That you ran no additional risk whatever, but con-
trariwise; and that it was better for the bank to refuse
discounts to o hers than us, which, if refused, will
bring down tie bank with it. As far as we individually are
colic rned, our liabilities are sale 1 and means ample; but
we have got to bear on our shoulLers Mr. H. Brown, Mr.
Cochrace, and otticri, until we can realise their property
(excep. the secend), which is a dead loss to us, but none
to the bank. We have to bear the whole of his losses ;
every one else escapes; all of which we can arrange by
necessary discounts. Our acceptances are small ;it is
otheis owing us, and not us owing others; so all our bills
are receivable, which we must assist the acceptors to pay.
We only want lime, fur as the ships' freights are paid and
other accouu s, so sha 1 we want less and less of the back's
assistance; but this can only be done by having time a'•
lowed,us to realise. Please recollect this, that in assisting
us in the way of discount the bank runs no additional
risk whatever, and obtains a good return, we being wil-
ling to pay 6 per cent., as our large business can well
afford ; but in retu,ing it rune the most imminent danger
of stopping. When you know the fearful exposure and
consequences that would ensue, as governor of the bank
and a considerable proprietor. I feel a deep interest in
its welfare, and du honestly beg of you to consider the
fearful consequences to all coneerned if you refuse to as-
sist us in discounting (we want no loan), which you can
do with safety and advantage to the bank, and it will
not lose one penny by us, as we have plenty of assets.
You hold Securities to a considerable amount in your
bands. I write this in pain, so excuse all blunders. I
will the moment I am able put everything straight with
the bank, and merely let the bills be credited less dis-
counts as they are dune. I am gradually
recovering, and now am able to get down
to dinner ; and hope, by God's blessing, in
a week to be able to come to town. Whatever may be
arranged hereafter, you must discount such bills as they
want to prevent a fearful catastrophe till I get to town.
—Yours with much sincerity,

"CHAS. WALTON.
" Hugh Tunes Cameron, Esq., General Manager
of the loyal British Bank."
Examination continued—At the same time that
.etter was written the large amount owing from the
manager, Mr. Cameron, to the bank, must have
bt en discovered. It appears there as a fact that
during the absence of the general manager I dis-
couwttd for Mr. C. Walton his draught upon Mr.
Cochrane for the 700/. on the 17th of March, 1855.
It is C. Walton's discount account. That must be
subject to explanation. I find two names in the
book produced, one beginning with the initial G,
the other' with the initial 8, two persons who
were said to be much involved with Mr. Wa'ton
at the time. After that time other discounts
were made on bills accepted by the same
parties to the amount of thousands. But that was
upon Mr. Walton's declaration as to the bhip secu-
rities upon which be had granted advances to those
parties. The bank parted with their own moneys
on merely getting the bills together, with the secu-
rity of Mr. Walton's name. The balance upon the
average on Mr. Waltou's discount account wi.h the
hank in 1855 was between 20,0001. and 30,000/., but
it was larger-40,0001, then 17, 000/. , then 16,0001.,
and finally it was extinguished. I have heard Mr.
Cochrane 's name mentioned in Mr. Walton's letter,
and I see that iu an early le ter in Doc. Mr. Walton
alludes to Mr. Cochrane's difficulties. Mr. Coch-
rane musthave involved him very mu.. h. The Royal
British Bank in that very month of Dec. granted a
credit to Mr. Cochrane of 5,000/. upon the security
of certain bonds at Liverpool. Mr. Cochrane was
at. that time a dir,:u:or of the bank. 'There were four
b nds given, amounting together to that sum. Mr.
Co3.?rane thereupon had liberty to draw upon the
funds ('f the bank to the amount of 5,0001., a privi-
lege I have no doubt he soon availed himself of. The
sureti,s to one of the bonds of 1,000/. were Kirk
and Furness, of Liverpool. Ido not know when
they fad, d. The deed of compositiori is dated very
s ,on afier the transaction. Mr. Oxley is one of the
snretiei for anotlAr 1,000/. He failed about the
same time. Wh n these two sureties had gone for
.2,000/. we asked him to show us a statement of his
account. He had no security to give us at that time.
His account increased after I bee .me governor, on
Feb. 1, 1855, from 5,0001. to 10,0001., upon the
strength of certain credi s which he said were either
in his hands or coming into his hands. I will say
what they were if you will allow me.
Mr. Linklater—lf you will do me the favour to
reserve your explanation until I have put one or
two questions with regard to the accnint I shall be
obliged. I observe that on Feb. .5 the amount of
5,500/. is transferred from the drawing account to
the discount account.
Mr. Esdaile—l do not know.
Just see whether you do not find that from Feb.
5, 1855, although Mr. Cochrane was in that hope-
less state that you have t us, the account gees
on, and in June, 1855, while you are govefoor, the
autount owing by •Mr. Cochrane upon that discount
account was 11,231/. 7—Yes. (Sensation.)
For that the bank had no security ?
Mr. Esdaile—No tangible security. (Laughter.)
But I have an explanation to make upon that.
(Renewed lauBll' er.)
Certoiuly ; and it so continued, and the amount
now owing by Mr. Cochrane to the bank is some-
wh .re about 100,000/. ?
Mr. Esdaile— Is it so much as that ?
10,4271. 2s. Bd.
Mr. Esdaile—Whatever the books say, of course,
I a'ltnit.

Mr. Linklater—Now any explanation you like.
Mr. Esdaile—At the time the 5,0001. bonds were
given ho put a list before us of certain liabilities of
his about to mature, and which those bonds would
cover. At thattimethebank was impressed with the
stleility of those names. (A laugh. ) The bank had no
reason to doubt the stability of Messrs. Kirk and
Furness, or Mr. Oxley ; but subsequent to that,
when Cochrane's embarrassments became more ap-
parent, and' the pressure upon him became more
severe, we called upon h'm to make a general state-
ment of his affairs m our hands, and ha eiowed us
thit there were b:11s, acceptances of hie own, to the