New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-11-27
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rLsr NJ MARSHALL, Cnief tesn1ef.


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THE BANK FAILURES IN SCOTLAND.
From The North British DcEy NAL =,
The block In MOI ey Il ex eooh5 sioei en3 "uoI
The Suspension OF the City OF Glasgow BANK agSis-
yst i1nner the enlargement and distrust ans
II forn the stoppsge Of the Western, sud shows IL
vust results wan. OF confidence "hen once
il breaks loose usy involve this community ana ,n9
whole kingdom. The same cause which mas compened
the CITY Bark 10 close its doors may fierce similar
course upon any bar in Scotland or tue worid; ana
one Of the first duties We have to perform In suuns
10 II matter Is 70 point out cesIIy iof Iue
of the public in what the suspension ot le wy "
GLASGOW Bark consists. II is not because the oahh
was unable TO convert It's notes ato gold tnst IL closed
its DOORS Every pound rote when the osok nus ~
culaiion uld have been exchanged az '9e ooo ~
gold. The City OF Glasgow Bank, indeed isoLo Y. Ao
pew ks in this country which could convert us
whole paper circulation into gold on demand ils"eai,
at, " tfom its chest, because II mas grown uP
chiefly under the Banking ACT oil loio, wn'oI
1uiies deposit in gold equal TO every note aoove
he average Issue Of that year. Ii Is not because INC
bank did lot afford in the liability or means Oh rs pro-
prietsry an ample security to s CREDITORS mat ~os
driven TO shut its DOORS because i's snsieno'u. a
verv nun circus. many Of them very wealthy, ana al
Of them al isble to the ss penny OF their fortune or
the obligations of the bank Nor IL The suspension 70
De buted 10 bad debts in the books OF tne
for the assurance Of the Duectors-a BODY OF nigny
honorable mep-has been published that this Is not the
cause, and no losses sustained oy tue oshA nsso
been aned that could mske any impression on tne
large paid-up capital 81 Uoo,O sternng) sna Tue
short has suspended because there was a run upon
for psyment of its deposits in gold-s demaad which
is clearly impossible to any bank that pays 81 interest
on ts deposits, and the inabihfy 10 inpiemen'
which at a moments rotics does not 10 any degree
affect per Sc the perfect solvercy and soidiry OF the
bank. 1t seems TO us important TO point oaf these
circumstances for. in addition to the misconeeption
which they may remove in country towns where there
are branches, they will show TO the admirers OF the
prese emit banking law on the other side Of the
border that there 10 20 security whatever in the issue
Of pctes upon an equivalent basis OF gold sganft the
poet serious catastrophe which can bes commercial
community. No case could illustrate this better
than the City OF Glasgow Bank because, as we have
said It's notice. under the Act Of 1915, are based almost
wholly on sovereigrs.
TIE pretert is hardly the time for blame recrim-
naton 81 the Of this additional cstsstr ophe
An opportunity will come when the whole history of
these banking difficulties will have to DO opened up
with ursparing honesty. The City OF Glasgow Bank
has been forced temporarily to suspend in consequence
OF the dstrust created by the fall OF the Western, ana
the fall Of the Western might have been averted oy
he tin ely cooperation ana assistance OF the ieaoiug
Scotch banks. The whole community is disgusted al
the PRIDE selfshness ISOLATION and utter want Of head
displayed by the directors OF monetary institutions
anG the calousness and stupidity with which they $40
rfce the honor and inter ees of this immense city day
after cav 10 miserable vanity and egOtism. Ina
present crisis will leave indelibe lesson on the
minds of the ciiZeps Of GlsgOw az 20 the trust 20 De
reposed in certain banks bat the concern OF the mo
me ut is simply what is TO be done to t stairs out OF
circulation are stopped Every day unt they resume
notes 10 the amount Ct $500 900 will gradually dsao-
pear from the currency OF Scoand-an evil in ltselt OF
no Ordinary magnitude and tina. will be felt in
medistey in the daily transactions Of the country.
But this il oply segment of the mischief. large
number of cur merchants and manufacturers are shut
opt from their deposit accounts, and from the or
dinsry facilities OF discount. Large establishments
are being closed every day; boats Of unemployed
workmen already gathering in the streets u no
lor ger the American trade or any branch OF foreign
commerce that is embarrassed bat our whole inIaai
hnsiness IL obstrueted and Imperfect. lie oul7 VI
Glasgow merct acts country towns With suspended
branches mast returned on them dishonored and
urable 10 operate their funds credits Ia the
banks their solyency viii be at an eud Let DO man
think because the doors of hls bank are stu open
that he is therefore safe may probably benen. the
embauesfme Mt of his neighbor Let bank lmas'ue Ia
its ostrich stupidity that because Il burrows its head IN
the nd il is from danger. There Is not urn or
bank in Gasgow that ia safe while the present stse
of things continues. The is one, therefore, for
public ard general effort at restoration AS regards
the vacuum suddenly made IN the supply OF circuisI
ing medium for retail transactions the evil may
be greatly alevisted by demand upon the chartered
banks for gold in exchange OF their notes. when
few hundred thousands OF soyereSns nave thus oeen
liberated from imprisonment, the want OF the with
drawn one pound notes will have been supplied The
Old banks very well do this much for the commu-
riv and the only inconvenience arising from II, IN
deed viii fall upon London and the Bank OF Eng and;
bu as little compass on has been felt for rs in that
direction, We will not be at al teuder'hearted
as 10 their accommodation. The second measure on
which we would rely for a complete recovery OF
our position is general movement OF the citizens
for the resugcltaon of the suspended banks. There
can be no doubt Of the perfect solvency aud trust
wor,hiness Of the directors and shareholders Of the
Western ard Of the possibility of placing i,s business
on sound ard profitable basis. Let our merchants
ard bank Gepos.ors therefore put their shoulders 70
the wheel and resolve in public meeting or BY SUBJ
scrpton paper that the doors OF the two banks must
be either opened in four. sndwerty hours with the
l. sk.xrxu do rkaa wnrk th..n
.elves by transferring much Of their deposits from
the open 70 The closed banks viii be sufficient for
the prpoee. This j. the best advice give in
the tircuIn stances. We shah be hsppy il something
better can be proposed, but certsio that II
remedy be not found, ana that Immediately, woful
re.u.t. will fall upon this city aud upon the whole
country site.
meetir, Of the officers of the banks Of this city
was hed at the Clearing House yesterday 70 &C. upon
he following resolve:
RereS Ths: hs Bsak, Of BoI'n enough pay
ard Custom Hol'e dues
This resolution met with opposition from Mr.. Lsmb,
of the New England who said there was ro justice in
sud- yirg the warts Of class, while Others were
refused. Mr. Cartwright Of the City, desired uui-
DIN system. Some banks psy several hundred tol-
lars at time upon bills over -, notwithstanding toe
fact ttat there Is vote Of The Association against it.
The following amendment was moved by Mr.. Hodges,
IF the Washington Back:
That the ,,cesd B.ns. be permitted 70 pay specie 70
their Whenever the claims Of taer csitoneFs shall
warrant Il
The resolve "a amended was opposed BIZ Msssrs.
Lamb OF New.Edglsnd, Wilkins OF the National and
Demug of tie Hamilton Bank. |. was favored by
Mr. Cartwright of the City ana Seton OF the Shoe and
Leather d. sers bank sDd Was rejected. recon-
meI dStior from the Clearing House Committee, that
sfter Dec 10 only 50 y cent Of the balances be psd
in bills, was rejected. II was agreed, however that
en- early meeting should be called TO consider the
subject.
From The yer- OreGas Bzllsiil, lath.
The times ale every day growing brighter, conf
6epce is becoming more general, aud every depart