The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-02
MONEY IN ENGLAND.
THE FIRST TRRMoR OF COMING FAILURES IN
L1vERPooL-sHIFTs OF TRADERS AND FRAUDS

THE FIRST TREMoR OF COMING FAILURES IN
ON BANKS.
From the Liverpool Mercury, July 22.l
Considerable indignation was expressed on
'Change yesterday at the efforts being made TO
increase the depression in the cotton market by
the circulation Of unlounded reports Of impending
failures in the trade. On Saturday the first meet
ing OF creditors Of firm which suspended a
month ago was announced in the most sensa
tional style, and reported upon in sucn way as 10
leave the impression that new disaster had
happened. similar course was adopted on
Monday In respect OF another firm, and
hints were thrown out that 1urtner stop
pages were expected. On Tuesday the inability
OI small cotton broker to meet his COMPARE
lively trifng liabilities upon certain speculative
transactions was elevated into "Difiicuues In
the Cotton Trade" and remarked upon yesterday
under the heading OF .'Rumored Failures in Liv-
erpoo'-the plural form being given 10 the re-
ports on the strength OF the alleged embarrass
ments OF an importing firm. AS matter OF fdct
nothing OF Importance has occurred to create the
least uneaslness-the desplcaole efforts Of the
panic-mongers Notwithstanding.
THE LONDON AND WESTMINSTER BANK
CHARGES OF FRAUD.
From the London Times, July 22.l
The haIf-yearly general meeting OF the London
and Westminster Bank Company was held at the
head office, LotnDury, yesterday afternoon. under
the presidency OF Mr. w. II. Hamilton CraKe. The
secretary read the following
REPORT
The directors report that. after providing for all
ordinary, Uad and doubtful ueDts, paying the ln-
come tax and setting apart e. QUO toward the
buildings oil the bank, the net profits Tor the last
half year amount 10 f252, 7O3 Is 5d, The rest or
surplus fund with this sum added VIII then
amount to II, 267 sol lbs. sd. the directors, out
of this lund now declare a dividend TO the share
holders
paid up capital OF e. 600 0C0. The directors regret
to stale mat tne past hall year mas been marked
by losses OF an unusual character aud extent.
1ney believe, however, that these losses OF q
purely exceptional character, and they are taking
active measures to prevent, as lar as possible,
their recurrence. TO provide Tor these losses the
Board have deemed 1t their duty TO reuuce the
dividend for the current nall year to i've per cent,
and to subtract nom tue reserve rne sum OF
$500. 600, placing that amount In tie meantime TO
the credit OF special suspense account as pro-
vision for the above objects This sum the dlrec-
tors Deheve Will amply meet all contingencies.
The rest or surplus 1und alter these deductlons
FINANCIAL ExPEDIENT FRAUDS.
The Chairman, IN the course OF his speech,
SAID -They had to accept the results OF bad as well
as'prosperous periods In the commercial progress
OF the country, Tor their business was ultimately
identified with 1t. For these recurring perlods
reserve they had made large provision Tor them.
or such they did not complain. But, In addition
to what he might call the ordinary difficulties of
conducting banking business, they mad mad to
encounter Others or q lar graver Kind IL was
new apparent that the Improbable condition or
trade In several branches mad gwen rise to new
financial expedients OF a vicious and most repre-
henslbe KIND, resorted 10 for the purpose OF sus-
tanning credit at point lar beyond where
prudence or q higher sense OF duty would have
dictated suspension. THIS vicious course OF
trading had led to fraudS--he said IL with a
strong feeling OF numiiatiOn-to frauds OF
nature, lar as the experience OF that oank was
con cerned, hitherto unknown 10 commerce. In
dealing with tins grave state or matters the d.
rectors deemed 1t their duty firmly to expose
these fraudulent practices applause, and
Nnip IN nd ~ hr hfnfNn
to those VINO mad resorted TO them the dangers or
their fraudulent consplracles. Tnis was strong
language. and unusual language from tnat Guar;
put 1t was not one whit stronger than the clrcum-
stances warranted. Applause) 1t might not be
KNOWN, but ne might announce tt, 'tnat Alexander
Collie was arrested on the previous night ana
was PROBABLY at the Mansion House at that mo-
ment. Ia discharging these painful duues-or
such they were--Lhe Board would receive the
cordial cooperation OF all concerned In promoting
SOUND and honest dealing. SO soon as u knowledge
OF these matters came TO the directors tney took
immediate steps TO strengthen the executive
OF the bank, and they had devised such
safeguards as should. 80 far as human
foresight could do so, guard against the
recurrence OF such losses. Their previous
success mad been so complete that IL would have
been deemed Doth imprudent anu IN wise 10 make
changes winch they now thought 1t might be ex-
pedlent &c adopt note had just reached aim
Collie was arrested At tue same time, ana lnut
they were now remanded until Wednesday. lie
mlEnt ada tnat kersnaw, the broker con.
gone away put that warrant had been taken
OUT aud tnat, II possible. he too would
be brought 10 justice. No Thought OF CLOSING
over the losses entaied by these natures nad ever
been entertained, and III dealing with them the
directors mad pursued the course they mad ever
taken in dealing with bad aud doubtful debts
Tney at once made provision Tor them In the Iull
aud ample manner set lorth Ia the accounts IN
their hands. After giving very anxious consider
alton TO all the circumstances the Board. had
deemed 1t their duty TO reduce their dividend Tor
the current hall year To 1--WE per cent ana TO SUP
tract from the reserve the sum OF $500 0O0, plac.
Ing mat amount III the meantime TO tue credit OF
special suspense account TINS sum. the dIrec-
tors believed, would amply meet ali contingencies