Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1878-10-09

FOREIGN.
A BANK FAILURE AS IS A BANK FALL
TYPE

, BANK FAILURE AS IS A BANK FAIL
URE.
LONDON, Oct. 2.-The City of Glas.
gov Bank closed its doors TODAY.
lts liabilities are stated to be $50 OOO0.-
OOO. The liability of the shareholders
is unlimited. One hundred pound
shares of the bank were dealt in yes
, terday. at over f2OO and within a
week at f23. The bank was estab-
!ished in 1889 and had fifty TO sixty
: branches.
This is the heaviest bank failure in
scotland since 1851, when this con-
. Germ also suspended. Other Scotch
e ssnks s.ns were asked for assistance bnt
;nr ' vna venxaamining the books at meet
.h., AZ, ses,esday, refused to do more
Q the City of Glasgow hsnI I.u,asion M oI
stated ct 81 miMion dol,srs aicn rha y
! failure has caused great a~n;.ne Inc
! throughout Scotland ana in imen. IouHnn
Stock Exchange, where there was
heAvy supply Of Scotch railway 40.
curitles In consequence of the press-
ure Of Scotch holders to sell. The
failure of the bank IL generally At
tributed to it's resources being locked
Iup in bills, sharcs and debentures of
various kinds, that were not readily
convertible. u
The Echo says the failure is very
important, not less than national
disaster, but, as usual in such cases, il
has been f0reshadowed by innumer-
able occurrences, and ft 10 hardly
likely it will do more than to bring
down the commercial firms which are
involved in the bill transactions
which have overwhelmed the bank. |
LONDON, Oct. 2.-The failure Of city |
Of Glasgow bank is believed to have |
been in consequence Of large advan-
ces on American securities, grain and
real estate, the values of which are
largely deprecated.
LONDON, Oct. 3.-The Times in it's
financial article this morning says
the City of Glasgow Bank had 133
branches. It has paid progressively
increasing dividends for several
years, until it reached IL per cent. 1t
would be incorrect to say that the dis
aster was unexpected, on the contrary
In banking circles It created no SUR
prise, for the bank had been losing
credit gradually for ten years past.
Yet the Scotch bank in London was
notin possession of information which
showed that the end was actually
near till Tuesday morning rumors Of 7
the bank being in difficulty had been !;
so often circulated before, within
strictly bank circles, that q repetition
of them did not excite particular in
terest on this occasion. The business ,
of the bank had been conducted for !
years upon very unsound principles, !
and from the fact Of other Scotch
banks having decided to let the bank
stop, it is inferred that il is very bad
case. Operations upon an enormous s
scale had been indirectly entered into
in Indian produce and Australian :
been accepted for account of three
firms. Very large advances had been =
made to firms In the iron trade In the !
north and utterly reckless support ap- 3
pears to have been given to builders. {
The immediate cause of the failure
was the impossibility of any longer 1
getting bills, drawn from India on the j
bank in Glasgow, discounted in Lon
don market; circumstance which I
explains to some extent the feverish
oscillations for some months past in {
the rates demanded for loans. These
bills had been sold in India to Indian r
banks, ostensibly against the shipment I
of produce, and ultimately came up Z
on this discount market. The terms !
demanded for negotiating them hav-
ing steadily advanced instructions
were at length telegraphed to the In \
dian. branches to take no more bills, /
and as soon as it were NO longer pos :
sible to keep an open credit system
going and lite paper afoat, the bank 9
closed its doors. The liabilities Of ,
the bank are estimated at $50, ,OOO, 900 ;;
acceptances slightly below$l5, 100000;
deposits $4OOOO,OO0. The unlimited
liabilities of the shareholders may e
perhaps secure depositors. The au- {
thorized note circulation was only I
72, 600 pounds, but according to last
accounts the issue is between 100000
and 100000, against nearly all of
which the law compels the bank to /,
have gold. We believe we are correct :
in saying that this deplorable catastro-
phe is, with reference to the Scotch !.
banks as whole, AN exception, ,andthatI ::
M other ha nk;nr in net;tnt;on In Scnt.
land ia apv wav m;xed nm With The
Citv of GLASGOW bank. or has been
on %. cad IN hns;ress os hind vh;ch
,ad te th;s fs;iuro
Attemnts have been made in the
c;tv N cpmni;csto matters hv sewing
tha-a ,rss p.,;c. hmt tharo 10. haas
M manic The RAM If Encland Il in {
an a~can,;onsI,v stron q nos;t;on rs,.-
t;valv ~ tha axtan4 If hrs;nsas GOING
nn nd Tho st.to ~ sGs;rs "a va-1 Az.
sarar. - whs. - wnnIS hsve han Nod
the d;ss ster hannenad n = hant whnse
snundna.s @ h.d bean ahovo ~ snsn;c;or
Tho E;nanc;e.. - snt;c;n.tos No sdd;.
t;onaI fa;lnras hnt n avs some msr-
c.nt;io Ss;inros csn 10 sdiv he .vn;daa
which wh;ch nav ~ a~tsnd nd INTO tha ;ron d;s.
tr;cta IN tba north ~ Enrisnd