Daily press and Dakotaian. [volume] (Yankton, Dakota Territory [S.D.]) 1875-1880, 1878-10-03
The Courtney. .Hanlon Boat Race Still
Hangs Fire.
Comments Upon the Great Glasgow
Bank Failure.
FOREIGN.
A FAILURE.

failed. Liabilities several million dollars
THE BROKEN GLASGOW BANK.
London, Oct. 3.-The Times, in its fnan-
cial article this morning says the city of
Glasgow bank had one hundred and thirty
three branches. 1t has paid progressively
an increasing dividend for several years
past, till it reached twelve per cent. 1t
would be incorrect to say that the disaster
was unexpected; /; on the contrary in banking
circles 1t created no surprise, for tee bank
had been losing credit gradually for ten
years past; yet Scotch banks in London
were not in possession of information which
showed that the end was actually near till
Tuesday morning. Rumors of tho bank
being in difficulty had been so often circu-
lated before within strictly banking cir.
cles that the repetition then did not excite
particular interest. On this account the bust.
ness 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 was inferred
it is a very bad case.
Operations upon an enormous scale had
been indiscreetly inferred into Indian pro-
duce and Australian wool, some IA million
of bills having been accepted for accounts
of three firms. Very large advances had
been made to firms in the iron trade in the
north, and an utterly reckless support ap-
pears to have been given to builders.
The immediate cause of the failure was
the impossibility of any longer getting bills
drawn from India on the bank in Glasgow
discounted in the London market. circum.
stance which explains to some extent the
feverish oscillation for some. mon tbs past
in the sails demanded for loans. These bills
had been sold in India to Indian banks os.
tensibly against the shipment Of produce
and ultimately came upon the discoun,
market, the terms demanded for negotiating
them having steadily advanced. Instruc.
tions were at tlength telegraphed to the In.
dian branches to take no more bills, and az
soon as it was no longer possible to keeE
the open credit system going and paper
aaoat, the bank closed its doors.
The liabilities Of the bank are estimated
at fifty million dollars; acceptances slightly
below fifteen millions; deposits, forty mil.
lions. The unlimited liabilities of share
holders may perhaps secure dep,sitors. The
authorized notes Of circulation was only
seventy-two thousand pounds but according
to last accounts the issue is between GOO, ,0O(
and 100000 pounds, against nearlylall o
which the law compels the bank to hav,
gold. We believe we are correct in saying
that this deplorable catastrophe is. will
reference to Scotch banks as a whole, entirel,
an exception, aud that no other bankin,
institution in Scotland is in any way mixet
up with the city of Glasgow bank, or haI
been engaged in business of any kint
which led to this failure. Attempts hav
been made in the city to complicate matter
bv saying that there was a panic, but ther
has been no panic. The bank of Euglan,
is in an exceptionally strong position rela
lively TO the extent Of business going or
and the state Of affairs isavery different t
what it would have, been had the disaste
happened to bank whose souudness ha
been above suspicion.
The Financier anticipates no additions
failures but 1t says some mercantile fai
ures can hardly be avoided, which may e,
tend into the iron districts of the mort
of England.
ENTERTAINING GRANT.
Paris, Oct. 2-Gen. Noyes, United Stat
minister to France will entertain Gener
and Mrs. Grant at dinner to day. Amo,
the Americans invited are John Wells
minister to England, John A. Kasson, mi
lister to Austria; J. Merdi.h Read, char
d'aifairs 10 Greece; Gen. Hazen, U.
Army; Gen. Lucius Fsirchild, Consul
Paris; cx-Gov Mccormick, Commission
General % the Paris exposition; ex-Go
Smith, Of New Hampshire, and Miss Wal
daughter Of Chief Justice Waite,
FIRES.