The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-23

bear an
c may ave many Of the caamoas effects which would
otherwise result from snch catastrophe. There Is
scarcely another bank In Scotland (they add which If
tho time s allowed by the creditors 80 well able to
draw the resources Of its wealthy proprietary. The
holders OF the notes Of the bank enoned not TO part
with them at discount, ~ full ultimate payment Ger
tain
THE FINANCIAL CRISIS IN SCOTLAND.
iron the North British Daily Mail, Nov. 10
Monday day OF deep anxiety and gloom in com
mercal circles in Glasgow. The suspension Of Messrs
Bcnnstoun Co. gave shock to the whole community,
for which the great majority OF course quite unpre
pared but became apparent that however painful
TO the city from the Glasgow origin and long high stand
ing OF the firm that event would entail comparatively
little loss this district the Messrs Dcnnsoun having
made effort to sustain themselves by any irregular
trans actions here, but at once suspended when they
found adverse blow after another beating against
them frcm the United States Rumors began 10 be crcu
lated however, as the forenoon wore on with respect to
muoh graver affair The Western Bank said 10 be
on the eve OF stoppage. AZ 2 O'Clock the worst
aDticipati'ns were realized by the closing OF that
,be oors tlat the directors % had found il necessary to
suspend payments Such event has long been unknown
in Scotland, and woud be difficult TO describe the feel
nes which II excited III this large community. Strong
dissatisfaction expressed at the refusal of the older
Scotch banks 10 lend the necessary aid in crss
to the Western and this dissatisfaction likely TO be in
creased the the circumstances become known. The
bad management and bad debts of the Western Bank
notorious. The diminished arising from
these self inflicted calames the evil to begin with
But the great wealth of the proprietary and the healthy
field OF business that remained the bank were amply
sufficient to have surmounted this difficulty. There
run upon the bank for gold-no discredit attached
to its notes.-the suspicion IN any quarter of the sol
yency of the institution But there began against
the hank process OF what may call .'sap and
mne," by the withdrawal Of deposit accounts in the
city, and Of interest deposits in the country branches
Persons not receiving the accommodation which they
accustomed fearful OF not receiving it, withdrew
their accounts and carrying out the notes OF the Western
Bank, deposited them in other banking establishments
heavy balance thus formed against the Western in the
weekly exchanges Of notes and these balances according
to CUSTOM bad to be met by exchequcr bills II was to
enable il to clear of this bi weekly liability that the
ard Of the older and chartered banks invoked aud in
the first instance granted But these pulled
up II really but reasonable demand after all that
was made upon them. They we're daily receiving from
the public the deposits the withdrawal OF which was thus
Gripping the Western and what asked that they
would not employ the advantage thus obtained against
sister institution in manner fatal 70 its existence For
any risk they ran they had the unlimited iab
lily Of proprietary a. numerous and wealthy
any Of their own, and on credit precisely sm
lar 10 which they themselves hold thirty forty million
Of deposits from the public Every effort made last
week by deputaons to Edinburg, of parties
connected with the Western and by proposals various
kinds to induce the directors of these banks to extend the
requisite assistance in ayerting what could not fail o be
public catastrophe plan was even arranged for the
malgamaton OF the Western and Clydesdale by which
the aiding ban ks would have had the security of great
unlimited proprietaries instead Of one But this, too
rejected, and it evident that the operation which
had been expected and the first promise of which had
sent thrill Of JOY and pride through all Scotland
be obtained Such Is the feeling excited in this city by
these circumstances that should be surprised
the most eettua measures adopted 70 put end 10 the
petty and runous jealousy OF banks that hail from Edn
against banks that have In the meantme the
pension Of the Western blow to the whole community,
and cannot fail to have some most unavorabie conse-
qneDces The rst resolution OF every man who has the
well being of Glasgow Scotland heart should be
TO prevent by all possible any movement the
part Of dcpostors against other banks Every bank
Scotand affords perfect security TO deposors ON the
other hand no bank whatever stand against for
deposits. The money lodged in our banks yields nte
rest 10 ts owners. II has consequently all to be-
ployed and invested in profitable way, and while
bank keeps much cash till is sufficient
demands
that all can be served the day. We trust that
every effort will be made 10 discourage Withdrawals of
accounts and deposits in the meantime from bank TO
another We understand that there was run last even
ing on one OF the savings banks This ~ be feared,
the Western had departments for savings ts various
branches throughout the town and the disappointment Of
It's saving deposors apt To be others
Of the same class In order 10 check this movement,
would suggest TO the directors Of the Western Bank the
poprey OF paying OF ts small savings depostors at once
The following circular has been issued by the directors
/ Of the Western Bank 10 the Shareholders
Iaprrs AND GrsrrsssrI' Z our painful duty % intimate
nature both in is country and abroad affecting our
% so aas e m % 81 m
We YOU that this resolution has adopted
without snnou and perseyering endcayors % obtain such
Scotland without Involving much risk To them, nigh,
aver, csastraphe Which on pnbe a. we a. prissa
grounds We shall never cease aegore This doe, 10,
manner in which our applications or aud we're met All that
after concsSins assistance To- limited extent on seearlss
have seen Y right g withhold all furthes essd;
The ssna and 70 hose who are involved in is s@6arrss
aaoueS pointing Al different results may both be
@ ~ s and % We are % ought o be
s ~ he nscessary to say few words as to The
Although balance has made books Of Tho bank
sncc he annual balance IN May last and although no done,
reason 70 hope time be given for he gradual winding up
een to ply ihs whole debts ril iorsses gM r~h a,nd
% a IT, IT, IT. s, y ~ s H. q q & ~ oeSg sSsn gSa S ass@ O. 1"
means q the individual partners Of the company rendered
more han sufficient 10 guarantee payment Of all s deposits
In these creums'ances the which appears
would decidedly be most advantageous for All parties pur
and obnsSon. q ne w,iS syssm and
PERHAPS an amaisamson II H. Snness with ,h. n e
other bank belongs however % the creditors u The bank
sras . e oo%sd snd hat sarpo.e R We prSPoe
ors places tuost convenient Tor ths that they may
Ppon soms one e repressa sem shoaa hey not aai =
held 10 Glasgow u e quite obvious hat III. mode of ar
he par, q Individuals but where such extensive
na sape hat should Il ss s a ssy hs@ "S e
views among hem The minority VIII yield Q he majority
hs psn wssd entail great sceess in ,se realization ~ H.
assets both q The company aud q he Shareholders be
come necessary 70 resort 70 s. y fortunate That an Act Of
psass place srmselves under he operson Of he JOIN,
i Act % e IKE = "a r'peS sss s s1s.p = rs.s % d
remain liable 70 the full extent for the debts Of
w. pf Importance the business he carried hut
the contains besds valuable and Iucous clauses
enabling placed ia IKE the
" be wound snd the of The individual partners
he made available for the early liquidation Of the debts To
adopt this requires only the resolution u special general
citing OF the shareholders We resolved
immediately calling such meeting 10 provide for the
usy Of such of action being preferred by the rre
OF forced on the company by adverse circumstances
In conclusion, " hoped you will see that have been
acuaed by the single desire " DO duty the creditors
well the shareholders IN the unfortunate position In
which they have been placed and At the earliest practicable
moment % take the instructions ~ those who legally
led 70 direct us TO all further proceedings am iies and
gcntl your obedent hy order Of the d
rectorsJ, - FLEMING, Manager. pro tsnpgre.
The suspension OF payments by the Western Faakng
Company officially noticed above created considerable
excitement head Office and the various branches IN
Glasgow yesterday. Miller street presented quite scene
fact, the entrance from Argyle street literally
blocked up, not should say by who had any ute
the stoppage Of the bank but particularly by those
whose curiosity led them 10 create crowd and 10 look for
something q interest because OF the want VI anything else
AEnx.n I.x.... uarl..E