The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1847-12-07 00:00:00

NORTH AND SOUTH WALES BANK.

On Wednesday a special meeting of the shareholders
of this bank was held at that establishment. The meet-
ing was very numerously attended.
RICHARD GRIFFITHS, Esq., was called to the chair.
The business of the meeting was to receive the directors'
report in reference to the recent stoppage, and present
position of the concern.
The report commenced by stating, that when the direc-
tors met their proprietors in August last, they little anti-
cipated the catastrophe wilich had since overtaken the
bank ; but the misfortune was one which could neither
have been foreseen nor averted. In the early part of the
year, during the imminent pressure upon the money
market, they had declined making fresh advances, had
restricted their discounts, and ordered a general reduc-
tion on all existing advances. In March there was a
drain upon the deposits of the bank, which then amount-
ed to half a million sterling, and the drain continued
throughout subsequent months ; but it was not, however,
until October that it assumed an alarming character. On
the 18th of that month the PAiyal Bank suspended pay-
ment, followed by that of Liverpool Banking Com-
pany, and the shock thus given quickened the demand
into a run. For the first three days the demands on the
head office and branches were incessant, but being
promptly met the drain subsided, and by Friday had so
far diminished that remittances to only two of the
branches were required by that post. After some unim-
portant statements, the report then went on to state, that
on the 23rd of October the London Express reached the
Principality, stating that the bank and all its branches
had suspended payment, and this statement immediately
caused a run for deposits on fifteen of the branches. The
demands were met with some difficulty till Saturday, but
for Monday they were enormous in amount. The panic
in the money market rendered it impossible to raise the
sum on any description of paper, even had there been
ample time to do so. As it was, it had to be raised in a
few hours, and on a Sunday, or not at all. Thus situated
the directors had no option but immediately to suspend
operations, which they did, and the bank yielded to the
pressure, after having borne a strain upon its resources to
the amount of £200,000, and whilst there was still in its
coffers bills and cash to the amount of nearly £150,000.
The report then stated at length the financial position of
the bank. The total liabilities were £491,073 6s. 9d.,
and the assets, after estimating their losses at £29,866
12s. 3d., amounted to £602,174 2s. 7d., showing a sur-
plus as respects the creditors of the bank, of £152,675
11s. 6d. The original capital of the bank was £215,450.
Since then, shares to the amount of £49,990 had been
forfeited ; and after deducting the estimated losses, and
the reserve fund of £5,074 13s. 9d., the present capital of
the bank was £152,668 Is. 6d., making the value of each
share £9 4s. 6d. In the bad debts only £9,206 had ari-
sen out of the business of the last two years. The report
further went on to say that two-thirds of the depositors
had signed an agreement not to withdraw their deposits,
but to take the post bills of the bank at 3,6, 12, end 18
months, interest being allowed at five per cent. The
directors proposed to increase the capital of the bank by
the issue of 10,000 preference shares of £lO each, bearing
interest at the rate of eight per cent. Half the amount
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rience would not be forgotten.
A committee of seven was here appointed to have a
conference with the general manager, and the meeting
adjourned for an hour. On their return, and the meeting
re-assembling,
C. SHAW, Esq., of Birmingham, moved, and JAMES
BROWN, Esq., of Glasgow, seconded the following reso-
lution :—" That the report now read be approved and
confirmed, and its recommendation adopted, except that
the interest on the new shares proposed to be issued
shall be seven per cent. instead of eight per cent., and
that it be not compulsory on the shareholders to take
such shares." The resolution was passed unanimously
amid loud applause.
The bank is to resume operations on the 3d of January
next.

A vote of thanks having been passed to the directors
and manager, the meeting separated, after sitting for
upwards of three hours.

COMPARATIVE FAILURES IN LONDON,
LIVERPOOL, MANCHESTER, &c.

In the monthly circular of Messrs. Duffay, Collins, and
Co., of Manchester, we find the following statement of
the failures which have recently taken place amongst the
commercial community :—" In examining the catalogue
of disasters before us, we find that the number in this
country has reached about 250. The proportion of
failures of mercantile firms is—for London, 10 mil-
lions ; Liverpool, 3 millions ; Manchester, 24- millions ;
Glasgow, 3 millions ; and sundries, including Leeds, New-
castle, Sunderland, Shields, Bristol, Dublin, Waterford,
&c., 5 millions pounds sterling. We are glad that Man-
chester and the neighbourhood, considering the immense
business that is carried on here, have contributed a com-
parative small amount, both as regards the number and
the sterling value in which they sum up ; and this, let it
be recollected, at a time when this district has suffered
more than any other from a deficient supply of the im-
portant staple which gives employment to its population."
It would be an instructive document which would show
how many millions sterling of realised capital have been
sacrificed to enable the solvent portion of the commercial
community to escape either suspension or the Gazette.