The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-11-03
THE FINANCIAL SITUATION.

from the London Times (ci,y ar,icls) Oct. 2a.I
The failure Of the Royal Bank has created much less
agitation on the Liverpool Exchange to-day than might
have been apprehended, there hope
that the liabilities instead Of reaching Oo0 at
than f 900 70 dspositors and about ca00 900
or f40o 900 on acceptances meeting be held
morrow, and the exact amount will then probably DO
established in May 1885, with OF 81 900 EACH
paid up capital Of $500 0oo which that time larger
than the capital Of any analogous establishment In Liver
pool In the following year great panic
the suspension Of the thrse American houses Wildss
Wilson and Wgyn; and although this . period
or extreme Hinl, the shares few years Afterwards
attained premium equal TO about seventy per cent
Ss sua paid The Of la fol-
Royal Bank stopped, among . number Of banks and
firms that falling every side rhs difficulty on
vances Of reckless amount 10 few individuals an un
covered total OF nearly half q million having, il was
% e single . % that Ss; the
sixty and extr aordnary efforts mado for
resuscation These were successful, and within six
weeks meeting was held, at which II was announced
that the bank would reopen the following day tho
let Of December To inspire perfect confidence the
future entire reorganization had bsen adopted. and
liar conditions then framed with the view OF COM
pietsIy preventing recurrence Of mismaasgement
filed. The deed Of settlement stipulated that the
FL 900 shares should converted smaller ones in
b raised i shares o Of u, usS 1AR
paid up bearing seven per cent interest," with right to
half profits beyond. Meanwhile only i've per cent was
to be paid to original shareholders until reserve fund
should have been created the amount OF cl00 0O0
further provided that the paid-up capital only
aud mol the deposits other funds should be employed
IN advances on opsn account; also that no advance
should be made beyond 100000 without security and
that the highest advance on any security whatever
should DO ESQ 000 The shares OF the bank we're not
10 be accept as security, the directors have
no voice on advances TO parties connected with
them either by relationship or business and the
paid directors and managers not to have
any advances The two paid directors were
TO recsve FL 900 per annum EACH and TO const-
tute along with the manager q permanent committee
two being quorum to determine upon advances or the
opening OF accounts and advances to be made
against the of any OF them The Contemplated
reserve fund Of fl00 900 has for time been at
tanned The nominal quotations Of the shares shortly
before the present soppago were 9a 10 for the
binary, with clio paid, and 1907 l0l for the prefer
ence. Last year they stood at much higher point.
The existing paid up capital e650 000 and the number
OF shareholders about $780, Of which about are
widows or unmarried ladies' but the general list
taDs names Of wealthy merchants and others and the
liability unlimited, there DO doubt that all the
creditors will be pa d in full
has BEEN reported that the assets are Of favorable
character but in any tho fact OF the suspension
having become unavoidable the face OF the manifold
restrictions In the deed Of arrangement furnishes
othcr illustration OF the folly OF expecting that security
can be impaired 70 any business By multitude Of
written rules