New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-11-27
The BRITISH FINANCIAL EXPLOSION.
THE PANIC IN LONDON.
From TAe London Times (Citp A,tiatl ~
WEDNRsnAY EXEhING. Nov. II, 1901.

anether Scotch establisb meDt-tbe City OF GAssow
Banh, With capital Of 900, reserved fund Of
ESQ sos, and 90 branches.
This was followed by the suspension OF the L'ndon
dsSoupt-house of Messrs. SspdeIsop, Ssnceman 81 Co
With liabilities for three three-and- a-baf milions
believed however, TO be amply secured by CONNER
cial bills and the property OF the hrm.
The Geographic accounts from GLASGOW during the
morning detcrioed . col tnuarce Of the run which
commenced yesterday the various banks and nearly
800 coo toveIejgDs addition TO the 800 900 dispatched
Nj everpe have been &c ut from the Bank Of Eng and
10 nset the demand. 1t was stated also hats military
force had been found necessary at Glasgow to preserve
sr6er.
When the Western Bank of Scotland, which stopped
On Monday, applying for assistance to tbs otaef
Scotch banks, its expectations were alleged to be
baetd ypon the fears 10 be entertained of the universal
panic that would result if il were - close It's DOORS
The courage Of the various institutons however was
not be shaken and their stability noT being tried 70
the utmost That the City Of Glasgow Bank would
be In Danger seems 10 have been senerauY contem-
psfeo but strong hopes are entertained the. the re-
rs ain Ger gill ttALd their ground The amount OF its
cep0tie Is not known. They are supposed to be con-
tioerably below those Of the Western of Scotland,
although still Of great magnitude and widely clffoseo,
owing TO the nufnber Of branches and the fact OF the
concern having been established niteseen years. 1t
has On authorized note issue Of f72 92 and the eItnc.
ton Of this will be equivalent to contraction OF
f48 GA the circulation, in addition the suppress
mon Of E225 800 from the failure Of the Western Bank
Its shares are distributed among larger number OF
persons than those Of the Western Bank, the total In
That being $50, while in this it is 5O9. Of the
prospects Of q resumption OF curse 10 conjecture
can yet b. formed but from the circumstance that the
bank bad agencies empowered to draw not merely 10
New York. but in California, i. is TO be spprehended
. cloee invest CATION may show 1t has not been con-
Quoted with great prudence.
The drain OF gold to Scotland at the rate OF more
thsp million in tso days constitutes, Of course, q
most serious addition to the pressure in London 1t
nust have its limits however, and these can be clearly
traced. The authorized note Issues of Scotland unt
90 Rexn At MT n CA n
pat out except sgairst gold. AT the last return the
circulation was ca OIL 239, being 1861 600 In excess
Of the 61ed sum- bat specie was held TO the amour! of
therefore f2477 69, ala the gold sent hence to-day
and Yesterday IT, consequently nearly equal to 80 per
cent OF the whole Considerable quantities, it must
be rnemoered bad been sept previously and further
parcels it is said, will be forwarded ton orrow al
Though it scarcely potsible that more will be re-
CURED If the oonsted simply OF no ehO'ders, 1t
would be altogether Improbable that the exciting sup.
ply would prove Inadequate but oePostoes are con-
brtDg to the panic large number of Il $50 also
claim specie. Nevertheless, Whatever may De the de-
snd tue Scotch banks il Ia plain tha their power
Of drawing upon ne n ust be simply to the extent
Of the credits they have open, the Bark OF Fog
lssd notes they may be able to collect or tue
funds they can realize by Gales on the Stock Ex-
change. OF the entire deposits which they hold, aud
when estimated at more than Thirty millions, only
very Moderate proportion is available In tins way.
Az far as London is concerned therefore, the move
ment bow taking place has no vague terrors. For
lbe moment, It creaIes most arnoyiog aRg!svstton
of troubles but it csnuot 60 beyond certain
peipt and even at the worst is not withdrawal OF
geld from The country the Bank Of England can
meet il In holder manner. and with more mdif-
ference as to the Temporary effect 1t may have upon
their reserve than would otherwise be the ctse Un'
softxI ssy the differences between Scotch aud Fog lab
law which have so long been permitted to emoaFrass
the ia tercourse between the two countries are most
prominent on ali fnsr cial points. Bank OF England
notes are net legal tender In Scotland, ana thus
IL .s,.l, fhA
vsniencss ,f the case by sending the required emit
tances 10 that form The fact of about t~othirde OF
The Scotch ccu aion being in notes under to codped
with the known habits Of the people, especially o. the
operative cssses a. Glasgow, In using the 0a'ks as
places of depos for their savngs will account for any
populs disturbances that may now have been threat
ered. Such movements however, are more evateecent
ard more easily met than ihose OF Larger capitalists,
and il tbese should not take fright the whole affair
will probably be Of short duration. Ii appears that the
rate If ALLOW Of the Sco.ch banks for deposits
all the recent advance IN the money market
has not been raised above per cent, although the
charges in the Of discount have kept pace with
those Of the Bank Of Ergaed. Indeed they were
recently charging 81 per oeot when the London rate
was s. The reasons assigned for keeping down the
allowance for deposits that the banks are con-
sdeIea 70 offer the only of investment approach
ing in seety 10 mortgages Consols and that rs the
former can scarcely be obtained, and Consols pay
still lower interest, per cent is sufficient temptation
Annexed 10 the circular issued by Messrs SsnderSon,
San6emsn e. Co, announcing the necessity for their
suspension The liabilities Of the house TO depositors
By whem bills are held security. aye stated t. be
between three Millions aud three millions and hall,
while those 70 other parties may be about t2oOOU0.
The great ms0rity Of the bills held being porfecty
good and such would be discounted by the Bank OF
England the depositors will not in these cases suffer
any Inconvenience, and the effects OF the stoppage
will therefore be very Limited when compared with
the magnitude of lis appearance Ten years ago the
house suspended dunng tie crisis which then ragged,
and IN less THAI five months 1t resumed business, MI
1sBctman btirg admitted as partner. An equally
favorable result confidently b, ped for on toe present
occasion. The pIrcipal difficulties Of the firm have
,sen from the failure Of the Liverpool Borough BsSk
ana Dennistoun & Co., but from neither Of theee
sources any ultimate deficiency be much apPre-
hekded:
"KwG WILLIAM STREET. Nov. II.
al" with extreme pain to that our
ss sho, pe
The Of the time: and the Ieeen. ,nsseS death Of
=, to tab. hi. Sep scs we sI1s' VA be but ssTporsy
Day. her Will Ss II state submitted iasIe.tsd
"sANDEssoS, sANDEMAN Co"
II was announced this morning that the Bank of
France have adopted new rates Of discount in place Of
the per cent fIed on the roth Of October. Heoce
forth the charges 10 be per cent for bills not hav
g more than 80 days to run per those under
81 days, AID 10 per cent Tor tnoe between 90 and go
osys decrte Is shortly expected to mod the la
Of 1907 which prevents bankers and traders generally
fom charging more than 6 per cent.
In The &C Of the afternoon report was circuat
at the Austr allan ms steamer Emeu had arrived
NJ Suez with reNy a million Of gold Tue sctu al sum
i f525, goo, ard tbis cpportune amount may be e1-
peesd to reach Southampton by the Austfsiasias on
The 18th or 18th inst.
The Paris letters meption the failure of NJ. Guim.rses
& Co. boure in the South American trade. with hs-
bifties for E36, 600. NV
A meeting was held to-day Of creditors of Messrs w.
spd H. Brand & Co., merch ants, whose suspen ION
vss announced on the Goth ult., when the ,o wing
statement Of affairs was submitted by Mr. jay, tne
accountant:
william Brand and Robert Thomson Brand trading under tse
AIIa 81 William and Henry Brand Co., No os fenenaf.h