The New York herald., 1878-11-02
How the Shock Falls Upon
the Shareholders.
RUSH FOR THE BANK.
Poverty and Starvation 7hrcug ghout
Scotland.
GLASGOW, Oct 20, 1873.

ike thunderbolt from q clear sky to thousands.
Rumor had been busy for days before the crash
came II is true, but the i'll news had not flown with
It's proverbisl pace and the por,entous murmur did
nos reach the ear of those upon whose daily hie the
collapse Will have the greatest effect In the
commercial circle men shrugged their shoulders
at the evident disposition Of the bank TO
lend. countsnance 10 unsound speculations
aud to give credit where credit At
tended by considerable risK. But on the Other hand
the share lists to point where It could
be In black white that the stock OF the
held It's against rivals, and snat tor years
past and 80 lately as last July, dividend At the rate
Of twelve per cet had been paid. 1t was in the lat
ter light that the affairs OF the bank presented them
selves TO the public; all conhdng they knew not Of
tho ran reed upon which they were leaning, Of ihs
hollow rottennsss OF the ground beneath their iseL
rnE SMASH.
The blow was therefore all the more severe and
summing whom, the morning Of the I'd inst. the
public prints throughout the country contained the
following annouhcement:-
mated their resolution her doors for business
ass :" 9sse % % % the he
veniencs Of the soppxgs to the public that they w
SAID bank now In circulation
Then followed The names Of the ten different banks
In Scotland who came to the oi the notes. The
first rsnzied rush for infor nation elected the bare
facts that Tho directors Of the City Of Glasgow Bank
had carried on business until they found themselves
utterly hopeless and helpless slate. They then
communicated with the other ban ks throughout the
country, requesting meeting Of their various repre-
ssn,asvos Az the frat conference Edinburgh. the
state si AFFAIRS SO tar then allowed to be known.
was laid before the delegates, and . commissioner
appointed 70 mako an Investigation as Tar was pos
sbe Tho result oil this preliminary iDqury satisfied
the managers Of the Scotch banks that II utterly
Impossible to give any assistance or relief 10 the
wrecked concern. This decision conveyed 70
the dspu,aliob OF directors OF the City OF Glasgow
Bank, then declared that they had alternative
but to close their doors.
CLANNIsH ACTION.
Matters having assumed so critical a form It was
deemed advisable by the other banks, with Wow to
sustain lar possible the credit OF the country
and the much vaunIed .'Scottsh system OF banking"
2cceps TIE Of City OF Glasgow Bank in the
ordinary course OF business. Some idea may be
formed Of the effect OF q step whom Il IL stated
that tho bank, which had been instituted IN 1882
l33 branches, l,27O partners and total Of deposits
amounting to fS 000, ,0o0 II had more agencies than
any other similar institution IN Scotland, and
by means OF these It's ramifcations were sx-
tended throughout the length aud breadth and
into The remotest corners OF the land. In
many ot the country places the bank was
represented Dy agents of the most influential char
acter who inspired the utmost confidence, and had
therefore established extensive connections in tneir
respective districts. Like the general public, how.
ever, these officials nothing Of the suspension
until the very morning OF the fatal day. To the
whole OF them lssgraphs orders sent In time
TO prevent their opening ~ the usual hour, but IN
some the kilograms had gone astray, and the
fact OF the suspension was CLEANED from The morning
Journals Where such was the case the depositors
naturally made . rush upon the branches and re-
gained posAsssion OF shelr money.
NEWS GLASGOW.
AT the headq Of the bank there was OF
the widest sxsisnsnt, and In all the departments Of
commerce quits . panic; business came 10 stand
sill Al the chisi olhce, IN Virginia street, large
crowds assembled early the forenoon and remained
oil through tho day In the neighborbood. Men and
women VINO had mousy in lhs bang hurried 20 the
building anu, unable 70 realize ths dread calamity
that mad overaken tnsin, naas fraatic attempts aud
pleous appssis 10 get back their property. Perhaps
the depivraDls Witnessed o ths
branches Ia he end oi the ety. inhabited by the
win lnis particular oics aep srtment mad long been
In operation which partsok tos large extsnt VI Tue
nature vi savings bank, receiving very small sums
IRON the thrifty residents vi the district At the ume
oi the suspension tusrs WAS long hst of dspositos
the BOOKS OF the branch and ths amount ~ their
circuit very considerable. IL was insvtaols that
these should suffer like the others, aud, knowing Tins
lne poor people crowded In hundreds 70 inc doors,
but o course tnsir enlrssliss were vi no avail so
great was assembisgs The mead office tnat the
police had be called out. ActiDg on tue hrst iui-
puse holaers Ut tue paper hurried TO get
IL cha nged gou notes. TINS Anxiety Was,
of course altogether unnecessary, and Inc iact tnat
the were taken In any number without remark
satisfied the holders oi tnsm That tnsy nseo nave
bsen under uneasnsss.
IScIDKSTs OF THE HUSH.
There were some vi haste " realize whicn
show that even a Uank iailars ~ not without its
humorous SIDE ose elderly Lady, having sos ner
reprooi, that would be her own alter ms
aud anosher waiKsd away usder heavy load VI gold,
preserving dignhea siisncs when tod W the Danksr
that she would soon Ds back sgain; aud an oid man
whose savings had been LOGGED 10 Que estabsbm msnt,
applying Tor anu obtaining nis deposit remarked,
lsit of the oilciais that "A bird 10 the
nap's worth IVA IN the Dusn.n A prominent Gias.
gov cIsrgy man had received cnsck ON tue tCity
Bank ior his malt years stipend about wscK
pr,or 10 tho iailurs, Ou. had delayed oashing IL,
aud on the Wednesday morning oi the crash ne ieit
home wih the intsntIon Of converting u into solid
cviu. When he came 70 tns LhoroukhiAre IN winch
ibs head ofnce o. the bank ~ situated he made iu-
quiries oi the corner constable as W what was the
o tue crowd, and only Too soon learned ths sad
The nall yearly stipend OF another iuckess par.
sou will also 'aii due snorly aud The entire church
funds are lodged in tne CITY Bank.
LOssEs OF THk cHARirfKA
More than VI The city charities viii directly and
Indirectly saner w tue Suspension, anu IN one IN.
stance, where iunds mad been obtained by pubc SUB.
sorpton ivr the erection OF an institution ior main
tainiug orphan ohldren, tho entre ssptal Is Iocxsd
up. Upward oi f40 0OO oil The SustentatIon Fund ot
the Free Churcu VI scotland 10 estimated TO be locked
Wy III uinereLt Urancbss the country where
collections bau bsen MADE oniy week or Two before
Business peopie generally soon reaiized how much
Their hands iettered by their bank nection.
One dealt with the CITY bauk found him-
sell placed Ia such position tnst he could ueiher Ret
money 10 carry on his business nor possess himself
of the guarantees winch woud enaoe him to procure
mo0ey, aud all thIs aitDough he could with perfect
Ia uars the account between the bank and him.
sell Gases occurred also III which persons IA busi-
ness whose iuhds we're locked up III The bank had
u dispose oil tnor goods "a consdsrauis sscrtnce
IN oruer 10 get money TO meet actual neccssttisA
These instances OF hardship are NOT tar rsactius In
thor cramping inl uence those Ia which co-opera
tive other societies concerned. The United
Operative Masons' Association oi Scotand Is a de-
positor In the bank 10 tne amount oi flI a25, the
whole OF Its available capitsL and there other
comDin nations, ms well ss suburDan oorporations,
whose iunds are similarly locked up.
cASNY SCOT.
On the day after tue SUSPENSION an incident came
uoasr notice waich snowsa considerable cu,sness ON