The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1867-11-07
The Royal Bank of Liverpool-Its Manage
ment and Failure.


From the Lonaon Times City Artcle), October 2j.l
The failure Of the Royal Bank has created much
less agitation on the Liverpool Exchange to-day
than might have boen apprehended, and there
| of reaching $4,000 000 as at first reported, may
not much exceed Fl. 100000. of which more than
Fl OOO 900 is to deposltors. and abou ESQ 600 or
s4OO 900 on acceptances meeting is to be held
to-mor. ow, and the exact amount will then proba-
bly, be stated. The history of this bank is re-
markable. 1t was established in May 1886, with
, shares of f1000 each, and paid up capit4l Of
100000, which was at that time larger an the
capital OF any analogous establishment II Liver
pool. In the following year the great panic
occurred from the suspension OF the three Ameri
can houses of WildeH, Wilson and Wiggin and
although this was period of extreme trial the
shares few years afterwards attained a premium
equal to about seventy per cent. on tho amount
paid up.
/ The railway panic OF 1S47 followed and on the
18th Of October in that year the R.yal Bank stop
ped, among a number If banks and firms that
were falling on every side. The difficulty on that
occasion was reported to have been caused by adj
vances of reckless amounts to few individuals an
uncovered total of nearly half million being, it
was stated, been granted to single firm. At that
date the number of shareholders was about two
undred and sixty, and extraordinary efforts we're
at once made for resuscitation. These were sue
cessful, and within Blk weeks meeting was held,
at which it was announced that the bank would
reopen on the following day, the LIST of December.
To inspire perfect confidence for the future, an
tire reorganization had been adopted, and it will
now be an important question whether the pecu-
liar conditions then fra led with the view of COM
pletely preventing recurrence of fmismanaeement
have from that time to tho presont been faithfully
fulfilled.
Tho new deed Of settlement stipulated that the
$1,000 shares should be converted into smaller ones
III order TO enlarge the constituency, and that new
capital should be raised by preference shares of
:s1O0 each, fully paid up bearing seven per cent.
interest, with right to half profits beyond. Mean
while only five per cent. to be paid to original
shareholders until reserve fund should have been
created to the amount Of f1O0 000 and it was fur
ther provided that the paid up ,pital only, and
not the deposits or 'ther funds. should be en-
ployed in advances on open account; also that no
advance should bo made beyond 100000 without
security and that the highest advance on any &C.
curity Whatever should be ESQ, 00O The shares Of
the bank were not to be accepted as security, the
directors were to have no voice on advances tu
parties connected with them either BY relationship
or business and the paid directors and managers
we're not to have any advances whatever. The
two paid directors were to receive f10C0 per annum
each, and were to constitute along with the man
ager permanent committee, two beng quorum,
to determine upon advances on the opening of ac
counts, and no advances were to be made against
the veto of any one Of them. The contemplated
reserve fund Of s1OO,OOY has for some tmo been
attained
The nominal quotations Of the shares shortly
befo the present stoppage we're 81 q 10 for the
ordinary, with s1O paid, and 1OOa a 1911 for the
preference. Last year they stoou at much high
or point. The existing paid up capital is f650 600,
and tho number OF shareholders IS about $50, OF
whon about one-fifth are widows or unmarried ia
dies; but as the general list contains names Of
wealthy merchants and others. and the liability is
unlimited, there can be no doubt that all the cre-
ditors will be paid In full.
1t has been reported that the assets are Of fa-
voratle character, but in any case tho fact Of the
suspension having become unavoidable in the
face Of the manifold rest 1ctions in the doed Of ar
rangement furnishes another illustration Of the
ed to any business by multitude of written
rules.