The Sun.
London, England, 1850-01-16 00:00:00

Mittion

LONDON AND WESTMINSTER

BANK.—(THIS DAY.)
The usual half-yearly meeting of the proprietors
of the above bank was held this day on the bank
premises, in Lothbury ; Joshua Walker, Esq., Chair-
man of the board of directors, in the chair.
The advertisement, convening the meeting, having
been read, the report (which will be found in our
City article), was submitted to the proprietors.
The CHAIRMAN, in moving the adoption of the
report, observed that it would be in the recollection
of the proprietors, that at the last meeting a pro-
prietor gave notice of his intention to move, that the
directors be requested to take into consideration the
propriety of adopting cash credits upon the Scotch
principle, and perhaps it would save time if he stated
that the directors had already considered the subject,
and come to a decision upon it. Now, if the
directors adopted that system, they would have
to lock up and keep their capital idle, but a
neighbouring bank was testing the principle under
the most favourable circumstances, and if it suc-
ceeded it would then be time enough for them to adopt
it. With regard to the report itself, the proprietors
would perceive that it was as favourable as the state
of commerce would admit of. No doubt many pro-
prietors had attended in the hope of hearing a dividend
declared, in the shape of a bonus; but although he
was not in the pleasurable position of being able to
gratify that expectation, he bad this gratifying intelli-
gence for the proprietorp,that the losses of the disastrous
year had been wiped off. In that year there were no
' less than 480 failures, amounting in the whole to
8,400,0001., and this bank being large bill holders,
came in for more than its fair share of the loss,
amounting to 60,0001, which had operated as a mill-
stone round their necks ever since. Those losses,
however, had now been cleared off, and in future the
directors would have to deal with the entire profits as
the proprietors thought fit. There was another inci-
dent which occurred in 1847, that he thought it right
to mention. In the worst week of that period,
which was now known as the reign of terror,
the bank had to dispose of 300,0001. of Con-
sols. On the following day the Government
letter came out, and the result was they had ulti-
mately to buy in again at a loss of 20,0001. Still it
was a source of pleasure for him to know that all
these losses had been written off, and when he men-
tioned that within the last four years their accounts
had increased by 11,000 in number, and 1,000,000 in
amount, he thought the old proprietors would agree
with the directors, that this bank was likely to prove
one of the moil flourishing in the metropolis.
Mr. TITE did not come there with the expectation
suggested by the chairman, nor did he wish to blame
the directors for their system of management. Still
there were rumours out of doors that he thought it
right to mention. In the first place, it was thought
that the Bank did not do the amount of business
which it ought, and which the magnitude of the
establishment entitled it to. This arose from the cir-
cumstance of their not allowing interest on cash
deposits, and he would therefore take the liberty to
suggest that this principle should in future be
adopted. Another rumour out of doors was that the
price of their shares was not what it would be if the
published accounts were more extensive, more clear,
and given with more detail ; and, while he doubted
the propriety of acting upon the Scotch system,
thinking it impracticable in the metropolis, he would
earnestly urge upon the directors the necessity of al-
lowing interest upon deposits.
The CHAIRMAN wished to know if the Hon. Pro-
prietor meant interest on deposits, or interest on cur-
rent balances ?
Mr. TITE said on both.

The CHAIRMAN did not think it right to adopt the
suggestion ; but with regard to the accounts, in fu-
ture they should be given with more elaboration.
Mr. CROUCH now claimed the privilege of moving
the motion of which he had given notice—namely,
' that the directors be requested to adopt the Scotch
system of banking ; but in doing so, he wished
it to be distinctly understood that he had full
confidence in the integrity and ability of the directors.
This bank was started on the understanding that it
would be conducted on the principle he now hoped to
see adopted. It was high time that the monopoly in
banking, which the London houses enjoyed, was
done away with; and since the system he recom-
mended had raised Scotland from an insignificant po-
sition to a nation of vast importance and unquestion-
able prosperity, he thought it would confer
an advantage on the middle and industrious
classes of the metropolis, and add materially
to their own profits if it were adopted by this bank
That they were in a position to adopt it no one could
dispute. At present they had a large laid-up and
accumulated capital lying idle in the funds, which
might be lent out at an excellent per-cent-
age to tradesmen and manufacturers who
were now crippled in their operations for the
want of such accommodation. Let it not
be said that the system was not based
on a sound, safe, and solid.foundation, because it was
founded on truth, and served not only to increase the
profits of the bank, but to enhance the comfort and
wealth of the great mass of the people. To prove the
stability and safety of the system, he need only men-
tion the fact that in Scotland the losses of bankers
during a period of 120 years had amounted to
scarcely 40,0001, while in this country the losses by
banking within the last 20 years had reached no
less than 20,000,0001. It was preposterous then
to tell him that the system was not applicable to this
country ; the fact was, under the existing system,
the bankers of London were the origin of more than
half the insolvency of the country, and as he saw
nothing in the character and ability of the people of
this country which was averse to the carrying out of
the principle, he hoped the time was not far distant
when it would be adopted by this bank. lie should
not, therefore, press his resolution.
Mr. MAUDSLEY did not agree with Mr. Tite that
any published accounts could have the effect of
enhancing the value of their shares, but it certainly
would be more satisfactory to him if the accounts
were given more in detail. lie had but one complaint
to make against the management. It was said out of
doors that parties banking with this concern did not
meet with the courtesy and accommodation that they
had a right to expect. Now, at the London Joint-
Stock Bank a committee 0f management sat daily, to
whom all parties anxious to do business with the
bank were introduced, and he thought it would do no
bym if the baize practice wee adopted in this bunk.