Evening star. [volume] (Washington, D.C.) 1854-1972, 1878-10-03
FOREIGN AFFAIRS.
pinpcr Io dem. Granl in /


PARIS. Oct. 5d.-Cien. NOyes. L. = Minister
10 france, will entertain General Grant at
sinner M 10 DAY. Among the invited guests are
anu Mrs Grant, Jno. Welsh, minister 10 Eng
,aau Mr, !ho- A. haSson, minister 10 Austria: j.
1 Meie11 Il, Read, charge d affairs 10 Greece;
Geh. Bazen, I. = A. Gen. IuciuS Fairchild
consul general al Paris; EN q overnor McCor-
mick, commissioner general To the Paris eX-
shire, and Miss Waite daughter of fbe cher
Justice OF the Supreme Court of the United
States.
Heavy Failure I'm London.
loNnoN, Oct. S-MeSSIs. Smith. Fleming 4.
Co. East India merchants at No L. and Is
Ieaden Han street +. e., London have failed
Their liabilities are several million dollars
The Bank of Glasgow Failure.
The Times IN lis financial article 10 day SAYS
The City ofGiaSgow bank had be branches Il
has paid a progressively increasing dividend
lor several tarS past until II reached II per
cent. IL would he incorrect 10 SAY that the
ClsaSter was GncApt cted. On the contrary in
ranking circles il created no surprise for the
pahk had been losing credit gradually for ten
Years past. Yet the Scotch banks in London
were lot IN possession of Information which
showed that the end was actually near until
iuesday morning. Rumors of the hank being
la ulncultleS had been so often circulated be-
lore within strictly banking circles that the
repetition of them did not excite particular
interest on tits occasion. The business of the
bank had been conducted for Years upon yerv
uIsound principles, and from ;he fact Of the
other Scotch banks having decided to LEI the
bank stop. Ii is inferred that IL is a very bad
case. Operations upon an enormous scale
had been indirectly entered into on Indian
produce and Australian wool some fourteen
million dollars OF bills having been ac-
cepted Tor the account of three firms
Very large advances had been made 10 nrr,s
in the iron trade i'm the north, and utterly
reckless support appears 10 have been given
to builders. The immediate cause of the fail
ure was the impossi6lity of any longer get
ting bills drawn from India on the bank in
Glasgow discounted on the London market a
OF ltnla a1n..
the feyerish oscillations for some months past
in The rates demanded for loans These bills
had been sold in India TO Indian banks, osten-
Slbly against the shipment of produce, and
ultimately came upon the discount market.
The terms demanded for negotiating them
having steadily advanced, instructions were
at length teegraphed TO take no more bills,
ana as soon as II was no longer possible TO
Keep the open credit system going and the pa
per af0at, the bank closed lis doors. The lia-
blllIies Of the bank are estimated at -i0.aaluNl
the accepjanceS slightly below Sl5u4}nn. and
the deposits Sio,Whoy0. The unlimited liabili-
ty OF the shareholders may perhaps secure the
deposrorS The authorized note circulation
was Only t.1t'O sterling hut according to last
accounts the issue is between c6.Nmu sterling
ara t'tGun sterling, against nearly al OF
which The law compelS the bank 10 have gold.
We believe We are correct in saving that this
dep,orahle catastrophe is, with reference to
scotch banks as whole. entirely IN eNcep-
non, and mat no other banking nstiiation In
Seotland Is an any way mixed UP wish Tie City
OF Glasgow Bank, or has been eng aged in
business Of the kind which led 10 this failure
Attempts have been made in the city to com
piicate matters 10y saying that there was n
panic, buI there has been no panic. The Tank
of England Is in an exceptionally StranE pOSi-
non relatively To the extent of the business 60
ing on, and the state of affairs is very differ
ent 10 what ii would have been had tie disas-
Ter happened TO a bank whose soundueSs had
been above suspicion"
The Ffndncier anticipates no additional
bank failures, but il SAYS that some lnercan-
Tile failures can hardly be avoided, which may
extend into the iron districts of the north OF
England