The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-08-17

money in circulation directly, it was firmly be-
lieved that, although houses around us were
falling in every dret tion, we should be able to
weather the storm. Moreover. by this time every
body believed the worst of the panic to be over
and that we should all see ine weather again. A
third batch of bills Tor $4,000, which we dis
counted with our regular bankers, made on the
whole fl0O,0 900 OF the G5OO, ,OOO which we had
thrown on the market, and we thought that
with very small additional help, we should be
able to pull through; or the ultimate results we
had not up 20 this time the slightest mistrust.
1t was an anxious time for us all. For seven
teen or eighteen days nearly every director Of
our board was In the office by nine O'clock and
no one LETT the City until the very last OF the
latest kilograms had been received from abroad.
We had all very large stake in the concern,
and for our own sakes, as well as for that OF the
shareholders, we were determined il possible to
save the snip from destruction.
The worst OF the panic had begun TO subside,
and there was much easier feeling everywhere
. in the City, although all bank and financial
shares were nearly unstable. In the Board
Room of ''The Malabar and Gokahama Bank,
Limited I'VE began TO breathe again, and our faces
were not quite so long and careworn as they
had been. 1t was our regular board day, and
the manager bad lust reported that he would
require about 100000 10 carry MIN over the
week, as there we're few small aCceptances
becoming 0He. He was directed to send that
2 &amo unit OF bills to the Bank of England for
discount, and proceeded to carry out his in.
Hstructions. Later IN the afternoon we were not
q little surprised TO learn thai the Bank had
declined 10 take the p Oer, and we nad accord
y lngly to seek elsewhere SOI the accommo odatIon
we required, We did not like the look OF the
F thing but as there was no particular hurry, we
delayed until next Gay seeking what we wanted
Hat any of the discount houses. But somehow
+ or other the story had got abroad, and by the
\ following morning every chattering member of
+ the Stock Exchange had his own story to tell as
4 TO how "The Malabaro had tried to discount
Htwenty, thirty, iorty, a hundred thousand
pounds any amount you like in fact-and had
4 tailed in so doing. Then came the fables in
vented partly for the mere sake of appearing to
+ know something of our affairs, and partly Tor
the sake OF ''bearing" our shares. By some it
haG been reported that we had lost f50 600 by
s tie Torres Vedras Bank; that we owed Messrs.
Sillibeer of Berlin 1000, 900 of francs, Gl60,
600, and that we held dishonored acceptances of
the "Patent Iron Ship Building Company,
Limited" Tor nearly as much more. In short
there was no story too absurd, or too improbable
\ for the monetary world to believe concerning
u.s. Our shares that moInlnP tell from par to
q discount, and what was still worse, when we
& took the 100000 which we wanted to discount
4 to our banker, he declined to touch the paper
1t was IN vain that we proved to this gentleman
that as we had already weathered the worst of
= the storm. we should now if only helped on a
little, get over all our difficulties, and face all
our liabilities. Not even the still stronger
argument that what between us and various
persons who diG business with u.s. the banker
would iuiallibly lose upwards OF fl00, 900 If we
stopped, had any effect with this gentleman or
his partners; he had made up his mind not to
&nesss, mstook obstinacy for tirmness and
&pig-headedness for determination. The rest
of that day and the next was spent
3 in t1uitess endeavors to obtain the
100000 we wanted, and which l really
believe would have enabled us to get over the
crisis. But it was ct no use. Story after story
about us, the most improbable and absurd, was
Invented, circulated, and believed. We went so
far as to offer to deposit 100000 of bills ac-
cepted by the French bank as security tor loan
OF ten or ttteen thousand pounds. The deposi-
tors III shoals gave notice that they would with
draw their deposits in seven or fourteen days,
according to the notice to which we were
5entirled; and many OF them asked TO be allowed
TO take their money at once, minus discount
Xcourse such state Of things could not last long.
For day or two we put the best face possible
#upon the state OF affairs, but matters gradually
&got worse and worse, and SO in less than week
the money articles OF the various papers an
Xnounced that THE Malabar and Yokohama
#Bank, Limited" had suspended payment, and
THAT the shareholders were going to petition the
#Court OF Chancery for compulsory winding up
#of the concern.
4 was now a beggar or little better. Having
E1been behind the scenes, l knew well enough
What the bank would never pay half a crown in
the pound, for that our tall must bring down
#many of the firms and establishments which
kpwed, or were supposed to owe, us money. Not
Wonly were my entire savings OF 100000 sWal-
Allowed up in this concern, but so certain had |
E been OF success that l had mortgaged my
pension OF $1,000 to the amount of nine-tenths,
4 so that had now b1t flOO year to live upon,
Eand even at this RAJ, IT would take nearly ten
\ years to pay off what had borrowed.
''Che Malabar and okohama Bank, Limited"
is now being wound up by a firm ofaccountants,
- who with the solicitor Tor the liquidation and a
host OF other individuals, seem to make an un-
+ commonly good thing of it; and am living
r upon my pittance in a fou1thrate French
country town, barely able to pay my way, and
u only of use in serving as an example to other
tSretred Indians not to dabble in finance COM
Hpanies, banks. or any other city business, which
is pretty certain, sooner or later, to bring them
to grief. But, poor as | am would not exchange
&even my present difficulties for the incessant
IVORY and anxiety of my lite when formed one
f of the board of 1.-The MalabaI Bank" during the
last three months of its existence. And yet how
many told Indians are there whose history,
since they returned to England, has been but a
counterpart of my own If such men would but
W remember that il is almost impossible for retired
magistrates or colonies, who have passed the
= best part of their lives away from England, tC
make good directors of public companies, and
3 that high rate of interest IS but another name
y6or bad security, there would be much less
fmisery of the kind have endeavored to depic
than exists at present. But fear that these arr
matters on which it is hopeless to try and make
men Wise.-Ienple Bar.