Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1878-10-18

when it comes to be E100 or E200 or
E300, or till he is able to commence
business as a master in the line in which
he has hitherto been servant. A
great part of the depositors of the bank
are of that description, and a great part
of the most thriving Of our farmers and
manufacturers have arisen from such
beginnings"
Under this system of doing business
| the number of depositors of the Bank
of Glasgow is probably very large, the
sum of the deposits at this time reach
ing S50,000,0 900. In 1857, this City of
Glasgow Bank, with another bank, was
compelled to stop payments; but it soon
recovered and resumed business. The
banks of Scotland are allowed to issue
notes, convertible into coin on demand,
and the issue is limited to certain
amount. After that amount of circu-
lation is reached, there must be a re-
serve of coin held in the banks equal to
the excess of circulation.
The failure of this bank is due to the
universal depression in business, and
the decline in value of all property and
securities. The money was loaned on
credits which at the time were consid-
cred all-sufiicient. These credits were
stocks and bonds of all descriptions,
and also the commercial paper of large
manufacturing establishments, which
have fallen under the decline in value
of manufactured goods, and the inabil-
ity to sell. The inability of the bank to
recover its loans, or to convert the Sc
curities into cash, has brought the
bank to a collapse. How far this fail
ure of the City of Glasgow Bank will
affect the credit of other banks, and es-
pecially the joint stock banks of En-
gland, remains to be seen. There is
evidently growing stringency in
money affairs in England, and all the
banks of the Kingdom are likely to
suffer from it. Great Britain must
have food We published few days
ago an estimate by an English
paper that Great Britain would
need this year 105,000,OO0 BUSH
els of wheat to supply the deficiency
in the domestic production. England
is also large importer, necessarily so,
of other food than breadstuffs, and that
country is brought face to face with the
fact that all this supply must be paid
for in cash. The old means of paying
for imports with British manufactures
are no longer available. The export of
British manufactures has fallen off so
seriously that there is constant dread
that the drain of gold will be so great
as to imperil the condition of the En-
glish banks. A large proportion of
this gold must come to the United
States. While there may be an econ
omy in the importation of all other
American productions, there must be a
sufficiency of breadstuffs and provis-
ions purchased by England, and, as
that has to be paid for in gold, it must
come hither. Never in the history of
the United States was its financial con-
dition so prosperous and promising as
now. An immense surplus of produc-
tions, an absolute market for all that
surplus, and the proceeds of that sale
brought back to us mainly in coin.
With our own Government credit at par
with coin, there is nothing to prevent
this country from becoming the depos-
itory of unprecedented weslth-wealth
measured by the coin of the civilized
world coming here in exchange for our
surplus products. Every steamer COM
ing to our shores is bringing coin to
our markets, to our banks, and to the
Government.-Ch Chicago Tribune.