The Sun.
London, England, 1842-11-17 00:00:00

JOINT-STOCK BANKS.

Joint-stock banking having become a subject of
paramount interest at the present moment, the fol-
lowing description of the actual working of the system
in Scotland, taken from the "Bankers Circular," will
be generally acceptable :
" We shall employ a few words in describing the
present general state of the Scotch banks. On the
late Parliamentary investigation into the affairs of
Banks of Issue,' it appeared from their witnesses
that the aggregate amount of their deposits was at
least 30,000,000/. One of the most intelligent of the
class (himself a deputy to London on the occasion),
however, told us that he had no doubt the actual sum
exceeded 35,000,0001. sterling. What do the bankers
do with this large amount ? We often see mysteri-
ous allusions in the London journals about the in-
vestments of the Scotch banks in the public or Go-
vernment securities, and they are no doubt at times
large; but we are of opinion they never form more
than a comparatively insignificant portion of the
amount of the available funds of the Scotch banks—
that is to say, meaning so far as such investments are
the property of the institutions, separated from those
of their customers and business connections. 'We
have no doubt that we could name about a dozen in-
dividuals in England whose aggregate capital invested
in the public funds would, when taken at the highest,
much exceed the sum invested in the same by all the
banks of Scotland, taken at the highest. Immeasur-
ably the greater portion of the sum under the com-
mand of the banks of Scotland is employed within
the country, on mortgages, loans to public Companies,
merchants, manufacturers, and farmers—the greatest
proportions of the amount being in the latter channels.
." There is nothing more difficult to obtain than ac-
curate statistical information relating to banking af-
fairs; and the Scotch very wisely keep theirs as close
as possible, except when acting in obedience to the
command of Parliament. From the best information
we had access to, we state our belief that the annual
discounts of all the banks of Glasgow amount to a sum
exceeding 50,000,0001. sterling ; which, taking the
bills discounted at an average length of three months'
date, would show that those banks always hold an
amount of 12,500,0001. The average length of time
would, however, probably exceed three months' date,
for there are cases where bills are occasionally dis-
counted which have 18 months to run, and not a few
at six months' date; therefore we think we should be
perfectly safe in stating the amount of bills always
held by the banks of Glasgow at 15,000,0001. sterling.
The major part of these bills are local, and never travel
out of the bank in which they are discounted, till taken
up, or presented for payment. And, as some sort of
evidence that we do not overstate the annual amount,
we may mention, as a fact, that one of the new banks
of Glasgow discounted within the first year of its
operations 2,500,0001. sterling—a fact which at once
illustrates the amount of IN hat all the larger and older
banks may do, and shows the practice and habit of
the people, and the use they make of bankers. Now,
when we find upon reasonable estimate such a sum as
this in one large town, what must be the entire
amount lent out to the people by all the banks of
Scotland ?

" Let us observe, too, that so long as enterprise
and industry prosper—and they always would prosper
with occasional, but not dangerously convulsive,
checks, if Scotch bankers were appointed to rule us
this money is lent out with prudence for the most
beneficial uses. The bills (as a rule) are not dis-
counted to supply funds for distant and hazardous un-
dertakings, on the faith of some great mercantile
name, but on a knowledge of local character, habits,
and pursuits. We may state (again as a rule), that
bills in Scotland are never re-discounted by the banks.
We know that we cannot state it as an absolute un-
varying rule, because we are acquainted with the
fact that two or three of the Scotch banks have occa-
sionally re- discounted with the bill brokers of London.
But we affirm our conviction, that if the sums so re-
discounted since the first bank was opened in Scotland
to the present day could be seen in figures, the entire
amountwould be much less than the sum sore-discounted
by the Northern and Central and Bank of Manchester
in one year. In fact, the great proportion of the
paper discounted being local, it could not be used out
of the country, if there were a disposition to do so,
which there is not. It is astonishing to find so ex-
tensive a system in operation kept almost entirely
dis-
tinct and apart from the money-market of London.
Even the most opulent and powerful of the Scotch
banks never (as a rule) resort to it to buy bills when
they are most burdened with money. We believe
there are not more than three or four bf those insti-
tutions having any regular correspondence with the
London bill-brokers ; and we could name bankers
who command a fund in capital and deposits of from
3,000,0001. to 6,000,0001. sterling, that never opened
an account with those new and influential agencies
for the disposal of money capital. They are wise to
keep their concerns as much as possible free from the
hot and cold fits and feverish convulsions of the London
money-market ;—wise, at all events, for the interest
and welfare of the community which has made them
rich and powerful.
" We say again that John Knox had much to do
with making Scotch banking, and by consequence,
Scotch agriculture (which is in a great measure the
creation of the former), what they are; for it is owing
to that spirit of resistance to foreign interference,
and the desire of fostering and aggrandizing (per-
haps too exclusively) everything Scotch, that the ex-
traordinary phenomenon of the prosperity of Scotland
is to be attributed. We are firmly of opinion that
Scotland is suffering much less at this trying juncture
than England; and that because the banks protect
and identify themselves more with the people than
the English banks. And they have done this so far
with less danger, for we were told by one of the best
informed bankers of the country, that during this
protracted period of embarrassment and suffering
the losses sustained by all the banks of Scotland
would in the aggregate amount to a small proportion
of the loss which we have suffered by the six banks of
Manchester."

The merit which is here claimed for the Scotch
banks of acting with more steadiness and ability than
those in England (though the latter, by the way, pro-
fess to be formed entirely on the Scotch system);
must certainly be conceded to them. -Whether there
is not, under the surface, a great deal of oppression
exercised by these banks to secure the payment of the
advances by them in preference to creditors of every
other class, which inflicts suffering on the community
at large, not much inferior to that produced by the
failures under the system as practised in England,
has been doubted by many persons ; but this is a ques-
tion upon which the materials for deciding are quite
removed from the view of the public of this country.
Experience has proved it to be wholly unsuited to
England ; and the cause probably is that the wide ex-
tension of them prevents their acting in concert,
which forms the great security of the Scotch mode of
business.

In regard to the reforms constantly called for on
all sides in the English system of joint-stock bank-
ing, numerous suggestions are almost daily offered,
but chiefly on the means of securing Shareholders
from the consequences of the neglect, or the igno-
rance, or the dishonesty of Boards of Directors. That
the Directors are usually elected, and Boards formed,
before the concurrence of Shareholders is invited, is
admitted to be in many cases a necessary evil ; but
a general complaint is, that once organised, scarcely
any change, unless by death or voluntary resigna-
tion, is afterwards allowed to take place, as few
Shareholders venture to oppose the re-election of
those who have already served, and come recom•
mended by the Board ; and hence it is suggested as a
check e
o'this
r andNevs
beneficial alteration in this respect, that at each
annual meeting one Director at least should abso-
lutely
otu al
ofd
tnewh form
o r
Bmoa
rd membervh certainlyo a
belected in his
place.
all their acts must be subjected
become responsible
mores i b e
vigilance f r,
to the scrutiny
er
of individuals who had neither
being vearywarues thate
l fu
retire,
ntheparticipated in, nor
b o
muche m re s n
exer-
cisetihßauledwhtoenact-
ing under the impression that the knowledge of their
transactions was never to travel out of their own cir-
cle. Though the practice of re-election, indepen-
dently of the will of the Shareholders, 'possesses a
sanction so venerable as that of the Bank of England,
the suggestion referred to is not the less valuable, and
it is to be hoped that some of the higher class of banks
will set the example of adopting it.
Another recommendation is the introduction, in all
deeds of settlement, of what already exists in many
of them—a clause empowering or making it impera-
tive on the Shareholders to elect two or three of their
number, not being Directors, to audit the accounts
and report on them to the next gerieral meeting. This
is also a judicious suggestion ; as is a third, that it
should be imperative at all times for the clerks in
Joint-stock Banks to furnish lists of the Shareholders
for any of the customers who might ask for them.
Since the system has taken too deep root to be easily
eradicated, the effort should be to ohtain through the
Legislature such reforms as may tend to make it work
more safely and efficiently.—Times.

On Monday morning at eight o'clock, the family of
Mr. George Liquorice, a respectable boot and shoe-
maker, residing at No. 91; Roston Old-town, was
plunged into the utmost distress by the discovery of
the unfortunate man having committed suicide by
cutting his throat with a razor. It appears from the
statement of the deceased's son, that the deceased not
coming down stairs to breakfast at his usual hour, he
proceeded up stairs, and on entering the bed-room of
his father he was horror-struck at finding him lying
on the floor weltering in his blood, from an incision
in his throat made with a razor. Surgical assistance
was procured, bdt life had been some tine extinct.
No cause is assigned for the rash act. The deceased
retired to bed on Sunday' night at his usual hour,
having, according to his custom, read a chapter from
out of the Bible to his wife and family. The de-
ceased has left a widow and large family to deplore
the melancholy event.

LAW INTELLIGENCE.
BAIL COURT, Nov. 16.
IN THE MATTER OF THE REV. DR. DILLON.

Mr. MILLAR stated that several parties were pre-
sent to make a return to the writ of habeas corpus ob-
tained in this case. He was, however, unable to serve
the writ on the principal party, Dr. Dillon, himself.
The returns of Mr. Goodyear, and others, were then
read, but not being in the proper form they were
amended, and all the parties stated that the child was
not, at the time of the service of the writ, in their
power, nor did they know anything about her.
Mr. Justice PATTESOW—Then you must be satisfied
Mr. Millar.

Mr. MILLAR—I suppose so, for the present, my
Lord.

SLATE V. TDB EARL OF WALDEGRAYE.

In this case, which was reported a few days ago in
The Sun, Mr. PEACOCK moved for a distringas to pro-
ceed to outlawry against the defendant, which was
refused, on the ground that a distringas to proceed to
outlawry would not lie where Erie party was not liable
to a capias, and the Court on that occasion expressed
a doubt whether a distringas to compel an appearance
could be granted, unless the affidavit set forth that the
party had kept out of the way to avoid service.
After the case had been argued at somelength, Mr.
Justice PATTESON said, under these circumstances you
may have a distringas to compel an appearance.

POLICE INTELLIGENCE.
(YESTERDAY.)
BOW-STREET.

ALICE LOWE AND LORD FRANKFORT.--Mr.
Vaughan, pawnbroker, of the Strand, appeared before
Mr. Twyford yesterday, hawing been summoned by
Miss Alice Lowe, to show cause why he refused to
deliver up two snuff boxes, which had been pledged
by her with Mr. Vaughan.
Miss Lowe came in a private carriage, with a fe-
male friend, and was attended in Court by Mr. Adol-
phus, lin. counsel, and Mr. Flower, her attorney.
Mr. Charles Montague appeared as counsel on the
part of Lord Frankfort, and Mr. Lewis as his at •
torney; and Mr. John Scarborough appeared for Mr.
Vaughan.
Mr. Montague said Mr. Vaughan had been sum-
moned by Miss Alice Lowe to show cause why he
refused to deliver up two snuff-boxes, pledged by her
for 51.45. These snuff-boxes had been the-subject of
an indictment at the Central Criminal Court, upon
which Miss Lowe was honourably acquitted; but that
acquittal had, it appeared, led her and her legal ad-
viser into a misapprehension, as they seemed to sup-
pose it had given her a title to the property in ques-
tion, which was quite a fallacy.
Mr. TWYFORD— I must have it proved that Lord
Frankfort is the owner of this property, as the Act of
Parliament says that the reel owner of the property
shall give notice to the pawnbroker. Now, there is
no proof of that notice before me.
Mr. Montague said that proof could be given if the
case were adjourned for two or three clays.
Mr. TWTFORD —There is sufficient doubt about the
real ownership for me to hold my hand, and I there-
fore adjourn this case until the lst-of March next.
Mr. Flower—l think it had better be the Ist of
April.—(Laughter.)---The parties then left the Court.