The New York herald., 1878-10-05


the disaster, but considerable uneasiness
prevails respecting future revelations.
FAILURES PRESENT AND TO COME
Shipbuilding interests are certainly seri-
ously affected. w. Simons Il Co., of Rem
frew, have failed, and it is feared that other
firms will speedily follow. 1t is not consid-
cred likely that the trades unions funds will
suffer nor that strikes will ensue, but
doubtless there will be several local fail
ures. Potter, Wilson d Co., shipowners
Their liabilities are estimated at 50, 600, 900.
Potter is director and shareholder. There
is no real panic here yet; the clannish action
of the other banks has averted it.
FROM CONFIDENCE TO BITTERNsss
The fact that Immediately before the
stoppage the shares Of the bank were
quoted at 236, illustrates forcibly the
public confidence in the bank. The
feeling is now correspondingly bitter
against the directors who threw the de-
positors money into the hands Of a
few persons, and then resorted to system
of acceptances on a large scale. ''From
recklessness in dealing with resources to
the manipulation Of accounts" says the
Scotsman, sis short and easy STEP"
BANK HISTORY OF CRIMINAL ADVENTURES,
MAD sPEcULArIoNs WITH OTHER PEOPLES
MONEY, STRANGE CHANGE OF srocKHoLD-
ERs, CONSEQUENCES AND OPINIONS.
icy CABLE TO THE HERALp.1
LONDON, Oct. 4, 1873
In the city yesterday for o short time
fears were entertained that we were
about to experience q panic which
would form an uuwelcome parallel
to '.Black Friday" of disastrous men,
ory. This feeling however, quickly
subsidized on learning the full facts con-
nected with the failure of the City Of Glas-
cow Bank The notifications of the bank
are chiefly concerned in Scotch local and
East Indian affairs. I have spoken with
several prominent English and American
bankers this morning. I transmit the fol-
lowing as o summary of their views:-
HISTORY OF ADVENTURES
\; sc kho 0r De ov,lr
is that of series of criminal adventures.
The managers allowed set of adventures,
several of them related to the directors of
the bank, to become their masters, domi-
nant relation which they maintained
for years. The books and balance
sheet have long, apparently. been
falsifed, as three months ago the
bank only accounted for s1,SOO,OOO
($9, 600, OOO) in acceptances, whereas they
ore now shown to be e3, 600. 900 (s15, ZOO, OOO).
A few houses had unlimited credit with the
bank, yet these houses we're known to be
unsound for years. First among them
was that of Smith, Fleming &
Co., East India merchants, of Lead
enhall street, with E160,OOO (s8OO, OOO)
and cash credit; next a Scotch
cattle breeder, who had earlier been an East
India merchant, with acceptances to the
tune of s1, 800, 900 (s6. 500, ,00O) taken by the
how 9th IN
between them s3, ,OOO, 600 (s15, OOO, ,O0O). The
liability of these four houses alone, it will
be seen, amount to over E6.000, 600
$3.50, ,OOO, ,OOO). No doubt is entertained OF the
criminality of the management
THE 'crrY" rohxwARSED
For several years, in London city financial
circles, the Glasgow Bank has been con-
sidered unsound, and Indian banks took
its paper to only very limited amount.
At lately held meeting of the managers of
the first French banks which have branches
in India the precarious condition of the
Glasgow Bank was clearly known.
WILD INVESTMENTS.
The securities upon which the collapsed
institution lent money were incredibly
risky. Among these are securities upon
land in the far West Of America and in
Australia, on cattle in South America
ranging the pampas. on pig iron and
steel at the full value of four years
ago namely 160 shillings (s4O) per ton,
40 shillings ($12 25) per ton and lower.
Without any further margin the liqui-
dation will be bad. Four million pounds