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

s4o0 900 taken for transmission Scotland the
fall Of the Western Bank having caused upon some
OF the other principal banks at Glasgow and elsewhere in
cludng the savings banks II Ii reported that among
the leading merchants IN the north the announcement
Oh the even. yesterday created neither surprise nor ag
tstion. The temporary Inconvenience among depostors
holders must however be extensive and severe
while the Shareholders about Thousand three hundred
in lumber, many Of whom women and persons OF
small incomes, out OF trade WILL may be feared, In
al suffer almost complete ruin The fixed issue
allowed TO the bank under the act OF 1894 east 1858,
and the extinction Of this, estimating Of
third in gold TO have been kept against it, will bc equva
lent 70 contraction Of f2ab 92 in the circulation Of the
countryan event undesirable at the moment tho
loss Of much bullion.
circular was addressed yesterday by the manager OF
the Western Bank Scotland 10 the various agents Of that
establishment notifying its soppage and explaining the
circumstances which had led TO the disaster. 1t is admit
ted that for years past under the late manager
system Of overtradng has been carried on through the
facilities afforded by the system OF redscousting.
Reckless credits giren % customers IN GlasyoD aud
correspondent in NeD Fork d0,oed 10 make advances
securities and 10 drd0 bills he bank Lately, an
investigation being instituted into Of the largest ad
accounts, il found that the houses 10 which
they had been made utterly insovent and that
large loss 10 the bank inevitable The debtors went
into bankruptcy the American panic came the
time, deposits began 10 be withdrawn and finally when
the hour Of pressure arrived the usual result witness
ed and the firms in London who had hitherto promoted
the financial system Of the suddenly found
expedient TO discontinue the cdiscounts on which
it had relied Application for assistance was then
made TO the Bank of Scotland. The Bank Of Scot
land consulted the other EDburg banks and the Union
Bank Of Scotland, who declined granting any aid until
appeal had been Bank England. The Bluk
of England OF course refused TO interfere The Scotch
banks then offered fs00 600 but condition that wind
ing up should ke place This peremptoriy resisted
and the f5G0 900 ultimately <, aned without cond
During the delay however many of the customers
OF the bank had begun to withdraw their deposits and
application further assistance
ry This met with decided negative, and the stopeage
accordingly took place The directors do not give all
hope OF the possibility Of resumption, and general
meeting is TO be held in Glasgow at early day Mean
while arrangements 70 be attempted for the retire
ment of the note circulation, and if possible Of small de-
posits
Foreign stocks have been moderately dealt in the only
alteration of importance being recovery of about one
half per cent in Turkish. Speculative transactions
tinge limited.
In the foreign exchanges this afternoon considerable
rise took place in the rates upon all the principal places
II, most instances the quotations sh0,oed te range
eior paper being regarded pih great dsilt o,oig the
serious difficulties occasioned in alt parts Of the continent
by the American crisis
The private letters from New York by the Asia are all
Of better tone than the newspaper accounts Owing
the influx OF specie the banks were believed to contem
plate resumption at very early date. Annexed is
extract Of letter from OF the soundest and least
gune merchants in the country:
The specie the way will not make much,
sterling and good bills be had
loo TO loo and expect next week they will be los Specie
with aoue he s r d Tsn a aas
feeling in all branches Of trade The wholesale grocers are
but matter OF course very careful what paper thy
worst over Should we receive within The next month haf
million sterling in gold from Europe shall have ship
IL back again In January.
AT meeting managers of the London joint stock
banks this afternoon 1t resolved with exception
Increase the of allowance for deposits beyond
the existing point of per cent The Commercial Bank
will grant per cent on the deposits at present in its
hands, but will not allow more than upon any that may
be brought future The London and County win
give only S, but Will offer its customers (who may
have expected il always to follow within ] per cent
of the Bank rate Of discounD the option Of receiving
back at all they have already lodged Mcssrs over
end, Guruey Co and other leading discount houses,
will limit their rates for money at per at call and
So per cent with seven days notice.
The railway market has been depressed, especially at
the close, owing large bona de sales of the
failures in tho North and the position OF the Scotch banks.
During the present pressure dealers disposed 10 limit
their transactions and hence any forced realization how
small occasions a reduction In American securities
Illinois Central ana Pcnney Central reecded Canada
Government bonds also quoted reduction of los
Ia mines the late advance In Alfred consols fully
maintained. JOINT stock banks quiet In mscela
neous securities English and Australian Copper, Crystal
Palace, and National Discount declined and London Gene
raj Omnibus showed greater hrmness.