New-York tribune., 1878-10-03
DETAILS OF THE FAILURE.

capitalists on the subject are appended.
DETAILS OF THE FAILURE.
THE LONDON STOCK EXCHANGE AFFECTED-THE
SHAREHOLDERS BOUND TO MAKE GOOD THE
LOSSES.
LONDON Wednesday, Oct 2, 1878.
The liabilities of the City of Glasgow Bank, which
closed it's doors to-day, are stated at $5OOOO,OOO
The liability of the shareholders unlimited. One
hundred-pound shares of the bank were dealt in
yesterday at over 200, and within week at 237.
The bank was established in 1889, and had fifty to
sixty branches This is the heaviest bank failure
in Scotland since 1857, when this concern also sus-
pended The other Scotch banks were asked
for assistance, but, after examining the
books at meeting yesterday refused to do more
than redeem the note circulation of the City Of
Glasgow Bank, which is stated at three and o
quarter million dollars. The failure has caused
great excitement throughout Scotland and in the
London Stock Exchange, where there was heavy
fall in Scotch railroad securities in consequence OF
pressure of Scotch holders to sell.
The failure of the bank is generally attributed to
its resources being locked up in bills, shares and
debentures of various kinds that were not readily
convertible. 1t is also said to be due to large adj
vances American securities grain and real estate.
the values of which are largely deprecated.
A NATIONAL DISASTER.
The Echo says the failure Is very important, and is
not less than National disaster; but, usual in
such cases, it has been foreshadOwed by innumer-
able occurrences and it is hardly likely that it will
do more than bring down the commercial firms
which are involved in the bill transactions which
have overwhelmed the bank.
The London Standard, referring to the financial
depression caused by the failure Of the City Of
Glasgow Bank, says there is practically no market
far of a a
probation.
THE OTHER BANKS SAFE.
LONDON Thursday, Oct. 3, 1873.
All the financial journals, in referring to
the failure of the City of Glasgow Bank,
believe that all the other Scotch banks
are safe but they anticipate that there will be many
commercial failures in Scotland and the North Of
England.
THE GENERAL INFLUENCE OF THE CRASH.
PROBABLE EFFECT OF THE SUSPENSION ON OTHER
MONEY-CENTRES-OPINIoN OF VARIOUS BANK
ERs.
The failure of the City of Glasgow Bank,
with liabilities of 100000 the subject Of dis
cussion yesterday among financial men. 1t created
special excitement or alarm. The opinion Of prOmi
nent trust company president that the failure
would probably prove national calamity to Great
Britain. He said "There Will undoubtedly
be panic at Glasgow, which may extend
10 Liverpool and London. 1t could not have
happened at . better time for this country, one
effects Of the panic here having been to cause ur
merchants and bankers operate with great caution
aud economy. Few banking houses in this country
keep large balances in England, but those who have
such deposits subject to drafts will probably call them
IN at once, be against the approaching panic
at the English money centres The business houses
here that do large London and Liverpool business will
doubtless send much money abroad TO check the antc
tad thav pon %
tight money market here The failure of the bark
siby embarrass II II does not seriously cripple
two large English firms which have agencies in NewYOrk
otherwise not believe that there will be any serious
iniury TO the American market. English Government
bonds I'm England mostly held as permanent invest
ment large share OF them being in the hands OF the
Rothschilds The panic scarcely affect these securi
ties and IL is not likely that there will be any heavy m
portaton Of United States bonds requiring the eIporta
ton of gold to England"
Kuhn Loeb & Co. stated that the embarrassment Of
the City of Glasgow Bank had been known for several
days and that it resulted from the locking up of vast
OF IN real esae ana 6oud Snef @ SsS s
bank funds loaned out IN large amounts TO the
iron trade in England and Scotland. Other bankers
stated that the scotch banks regarded among the
hest managed financial institutions In the world, and
that Glasgow had been exempt from heavy
SI"A x nrcscnt. they claimed. it was Impossible
to say how the qualifications OF the City OF Glasgow
Rank extended; but IL fair 10 that of
the large English corporations that bad been using It's
caital could not respond on call, ana would probably
be forced suspend In this event IL was believed that
widespread panic would ensue, probably extending
ali over Great Britain panic ip London, Liverpool aud
Le principal cities of Scotland, IL was thOngh would
be especially severe. as IL would close many large man
nfactore and hundreds OF thousands OK abOrers
out of employment The bankers OF this city generally
agree that aside from Grating tight money market
abroad no serious effects likely to be felt here.
Another banker thought that a general panic should
he precpitate I'm Britain by this failure it might
seriously affect EXPORTS and that possibly large
amount OF Government bonds might be sent to this
countIy requiring unlocked for expectations OF gold
exchange. He was inclined 10 take more favorable
view OF the situation, however, aud expressed hope
thet tne stockholders the suspended bak at Glasgow
might arrange for liquidation on favorable terms and
thus avoid panic.