The sun. [volume] (New York [N.Y.]) 1833-1916, 1859-11-15
Scotch Ilanking.

IL II w'ro possih o (says tho London Times
Of the 2sth ult. for the public TO bs stirred by
any further revelations Of Stottth Banking,
esI cciaiy as II has been praciscd In the City OF
Glasgow, a bill Of complaint Just filed by
hSieholder in the Edinburgh and Glasgow
Bsnh which stopped In Juno last year, against
the chairman and joint mlnssers would have
that effect. The hard self possession Of the
principal actors, their phsra.s cal public uf.,
the cagerness with which thor misdeeds arc
ultimately pallistcd by tho circles in which
they have hourishef, and tho closing dex
teriiy OF their manner Of completing, by
every technical plea, tho impovcrishment
Of such of their victims as may DO tompt-
ed by despair to seek tho law courts are COM
mon almost to every case. Little attention,
ther, fore, can be expected for the recital in aues
tion, which for the present must be received as
ca parte, and Of which the following arc the
hoac Prom Febiusry, 1850, to 1853 he (Mr.
JOHN CuLLEs) constantly purchased shares In
the Edinburgh and Glasgow Bauk on tho strength
as he AYERS, Of the reports submitted at each
meeting, until his holding amounted to about
6.OOW., Of which sum he now claims restitution
from those whom he changes witt ba, ing suuan-
dered II. The bank had offices In Edinburgh aud
Glasgow, with directors in each city Its capital
was j. .OOO.OOH. In H. shares, and the usual pro-
vi,h ms, to which some persons, who fancy tha.
honesty can be secured by an abundsnt compi-
cation Of legal restraints, attach 80 much import
aDoe were made TO prevent improper advances
to the directors or others, and to compel tho
winding up OF the Bank on tho loss OF one fourth
OF the capital But II Is alleged that In 1850,
when the report announced ' largo and stead-
ly increasing business, and recommended an
annual dividend of d per cent, FREQ Of income
tax, mere wds IN ore drarn sum oC EI31.0OO,
which had been received by nine persons or firms,
none of whom could meet their engagements.
Two OF these who were indebted to the Bank
E2JO.O09, had actually passed into insolvency
prior to the date Of this meeting, yet tho amount
proposed to be written off for bad debts
was eli 4j7, "lesyipg reserve fund Of
flO6 1iO.' Duiing each successive year the
ruin became greater, but tho reports, even when
tboy confessed partial Losses, always stated
they were such "A might easily he retrieved, and
that the current business was most extensive,
safe, and profitable. When the shares declined
tho bank made large purchases, and these crn-
santly figured In each bslance-sheet as 20 d
assets, utder the hoad Of "stoek investments. ="
On one occasion, when a shareholder wrote to
tho se:retary, intims ing his Intention 20 point
out at 9 general meeting false ST. ;emont in the
report, the bank sont their law agent to him 20
purchase the whole Of bis shares at par and thu,
TO prevent his atten lance. Ihrou RhOut tho hole
of this tins the bank was in debt 10 its Lon
don ageuts, and was kept alive solely by a
wholesale system of reciscounting Yet in
February, lS5S-only four mon,hs before the
final stOppabs--whsn an acknow dgment of