The New York herald., 1878-12-18

fortune it freely stated that when the City OF
Glasgow Bank scrip handed over as 81.
eurity for cash credit at least one OF
the directors of the Caedonian was srohRN
opposed 10 its being accepted. At that time ne was
overrued by the other members Of the Board bnt ne
atterward persisted in his objection 10 such compro-
missing securities being held and urged the proprety
OF disposing of the shares This sound ADVICE was was
nnheeded however, and grievous calamity mas mus
fallen upon the Highlands of Scotland
THE SUFFERING SHAREHOLDERS
As in the OF the City of Glasgow BANK many
their dividends, and although they are not keiy 70
be subjected to the draining process from wheh me
shareholders of the Glasgow concern VIII snn.r hueh
distress viii doubtless result On the list OF holders
pear the names of people in all manner OF cangs even
the most humble. while there are great ntnnoer OK
ladies' many of them being widows and spinstcrs.
On the other hand however the landed interests are
largely represented 474 gentlemen appearing on 1he
list, with "a asl shares and i3 executors and trus-
tees. with 10 l5i shares. The directors nave nearly
all large holdings and the manager has I'D shares anu
holds in addition, for the bank, 4'sI more
FoRrUSArE DEPosIroRs.
Some cnrious stories are told of the narrow es
capes of dePositors. There has been an nndoubsed
run the bank for some time. though the steady
north country people were too cool and shrewd
10 allow it to degenerate into panic. anu
large sums were withdrawn. In the town or forres
there was some excitement ON the evening .e
bank closed. A depositor had received telegram
from friend in Aberdeen. who had some knowlenge
of what likely to take place. telling him to take
on. tonight any money you may have III TIE Saie
DOMAIN. The receiver Of the message appears to have
taken the whole town into his confidence. for when
the bank opened as usual, between SIX anu seven
o'clock. the counter besieged and in
an hour tho Golfers were pretty well cleaned
out. In some places, even on Ihursdas'' .ns
branches of the bank wero opened for
some hours the managers not having received orders
TO close. and in where the Inverness weekly
papers containing the arrived early in the morn
ing the depostors took full advantage or the respite
in drawing out their money
FRYING AND IN THE FIRE.
On the other hand the Caledonian Bank must havc
opened great many accounts within the last TWO
months. The City of Glasgow Bank was the most en-
terprs;ng OF the Scotch banks in it's efforts TO secure
new business, and the consequence was
that it had more branches in the High
lands than any of the other Edinburgh
or Glasgow establishments. When the Glasgow Bank
burst up many of the Highland depostors opened &C
counts with the Cacdonian, wishing no doubt. that
they had done before. Now they are in the unfor-
tuna.e position of having their funds locked up in
two places.
PROBABLE REFRIGERATION.
Several schemes are already spoken OF with the
view to possible resumption Of business by the
Caledonan Bank One Of the most favorably re-
ceived is that Of limited company with capital OF
sT5,go0. which, with the banks reserve of
s75,G'o. could be handed to the Glasgow
liquiGators in security Of their claim and
thus leave the banks own capital Of S15OO0 intact
This scheme is said to be looked upon favorably by
several of the larger shareholders but nothing deh
mite is likely to be done until the meeting OF share
holders.
The agreement submitted 20 the Court of Session.
to-day provides that tho Manager Of the Caledo-
man Bank shall be appointed provisional
liquidator: that the liq,iidators of the
City Of Glasgow Bank shall obtain
to stand against claims the shares Of that bank.
and that the reserve fund shall be handed over to
other Scotch banks who will pay the notes OF the
Csledonian and all the doposifors