Helena weekly herald., 1878-10-10

ioin his In diars at Pass creek, and should
this occur there is serious trouble ahead tor
the Black Hills and other frontier settlements
~<O\~~ ~
A Fifty Million Failure
LONDON, October 2-The City OF Glasgow
bank closed its doors to-day. Its llablllties
are stated to be $5O,0OO,000. The liability
ot the shareholders is unlimited. One
hundred pound shares of the bank
were dealing yesterday at over f2OO, and
within a week at f237. The bank was estab-
Gshed in 1889, and had from fifty to sixty
branches. This is the heaviest bank failure
in Scotland since 1857, when this concern also
suspended. Other Scottish 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
half million dollars.
The failue has caused great excitement
throughout Scotland and on the London Stock
Exchange, where there was heavy tall IN
Scotch railway securities in consequence OF
the 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.
The Echo says The failure is very im-
portant, and not less than 9 national disaster
but ss is usual in such cases, it has been fore
shadowed by innumerable 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.
LONDON. October 3.-The Times. in its
financial article this morning, says: Inc
City of Glasgow Bank had 1873 branches. 1t
has paid progressively increasing dividends
for several years past, until 1t reached II per
cent. 1t would be incorrect to state that the
disaster was unexpected. On the contrary, in
banking circles it created no surprise, for the
bank had been losing credit gradually for the
past ten years. Yet the Scotch banks in
London we're not in possession Of informa-
ton which showed that the end was actually
near until Tuesday morning. The business
of the bank had been conducted for years
upon unsound principles, and from the fact
that other Scotch banks had decided TO let
the bank stop, it is inferred that it is q bad
case. The immediate cause of the failure
was the impossibility of any longer getting
bills drawn from India on the bank in Glas-
COW discounted in the London market. These
bills had been sold in India to Indian banks
ostensibly against the shipment OF produce,
and ultimately instructions were telegraphed
to Indian branches to take no more bills, and
as soon as it was no longer possible to keep
the open credit system going and paper afioat
the bank closed its Doors The liabilities OF
the bank are estimated at $50. 600, 600; &C.
ceptances slightly below $15, ,000, 900; depos-
its, $40, 100000. The unlimited liability OF
shareholders may perhaps secure the deposi-
tors.
LONDON, October 3.-The Times in refer
ence to to the Failure of the City of Glasgow
bank, says that Smith, Flemming Il Co.,
East India merchants, of London. are liable
for cash advances amounting to f853, 600 and
acceptances of 600. Altogether the Glas-
cow bank lent f5, 1923, 900 to four firms, the
reputation of one or two of which has been
anything but good for years past. The opln-
ion expressed by bank managers is that
more reckless course of gambling with 9TH
er peoples money has never been pursued BY
any body of managers or directors and that
such enpagements as these could never have
been entered into had there not been the
weakest or most wilful sanction of the spec
ulations of these four firms, coupled with q
negligent system Of supervision which is
hardly short of criminal. The bank, it is es-
timated. will show deficit of some f3,OOO,'
600, which to the knowledge of the mana
gers has been accommodating for years past,
vet the dividends had been increased.
LONDON. October 8.-Smith, Flemming
& Co., East India Merchants, have failed.
Liabilities several million dollars.
LONDON, October A. The total liabilities OF
Smith, Fleming & Co., East India merchants,
whose failure was announced yesterday, are
estimated at over 90, OK, ,000 The liabilities
of their corresponding firms which fail with
them, VIM. Nicol & Co. OF Bombay, and
Fleming g. Co. of Kaurachee, are doubtless
considerable less. It is understood, however,
that in consequence of exchanges OF paper
between the City of Glasgow Bank and India
houses, the same set of liabilities will be
found repeated in the balance sheets OF all