The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-22

Bart NJ p; the latter being himself possessor of
third share in the bank During his lifetime sir
Frederick Williams father. besides being leading
partner in the Cornish Bank, was conneeted with
many important commercial Arms AMI. besides this.
be was singalarly bold and successful mining ad-
SIR rnEpErrcx WILLIAMS WILL.
The Western Morning Aeos supplies some interest
ing and important facts under this head and from
these gather that Sir Frederick. among other vau
able properties. possessed an estate in the adjoining
county of Deyonshi:e worth f200000 He died sud
denly in September last, and the OF his will
now the subject OF considerable comment, as having
little bearing the subsequent failure of the Cor
will OF the late Sir Frederick Martin Williams, of
ooonvrea. Perrsnarworthal: and Heanton Court.
North Devon. who died on the sd of September.
proved on the 18th OF November by his widow, Mary
Christian Williams Sir Frederick bequcatied all his
real anc personal estate to his widow. Lady Williams
absolutely other gift whatever being named. The
personally sworn under EGO 900, and tho large
strictly entailed on the eldest son the rsent S,s
William" Following this there came some curious
runners anent the bank. 1t was stated that Lady Will
Jams hnd determined to withdraw all her husbands
money from the various undertakings, including the
bank, in which, during his lifetime he had been en-
gagged 1t does not appear that this had any material
influence the general body of dcpositors, but the
slight rumors which it gave rise to reached the ears
OF the remaining partners. tho Messrs Twcedy and
those gentlemen regarded the matter AS sufficiently
serious TO induce them to send ont circular which
contained some very ominous sentences.
AN AMBIGUOUS CIRCULAR.
In this circular they said :-'Dear sir or madam,
we have the pleasure to inform you that arrange
been maze 10 replace tho Onctlird share
Of the capital of the Cornish Bank held by our late
partner Sir f. NJ. Williams, Bart We think 1t right,
as we understand that rumors to the contrary have
been circulated. to inform you that by Sir +. NJ.
Williams death the resources Of the Cornish Bank
are considerably strengthened by the money which
has already and will into it from his estate.
We are yours faithfully Tweedy, Williams x Co."
Looked ut in the light of subsequent events this
circular is regarded as huge mistake. and there
can be question that to its issue the Cornish Bank
owes it's downfall. Intended to allay supposed
disquiet it had the very opposite effect 1t created
short space of a week it brought about
the disaster which it sought to avoid The
mer From this It would tsa
Sir Frederick Williams, Immediately before his
death. entirely renquished his share in the bank.
III this be of his liability has ceased and
the creditors would probably, even IL there no
other cause, not be able to upon the estate of
the late Sir Frederick for peuny
AN ovERDRAwN ACCOUNT.
There seems however to be something more be-
hind 1t is stated in the circular that 1.-THE resources
OF the bank will be considerably strengthened by the
money which has already and will come into it from
his estate. This is very generally interpreted to
mean that Sir Frederick's account at the bank
considerably overdrawn. Among other things, it
is said the account overdrawn something like
ES0OoO and it is further asserted that instead Of
ceivpg anything when he reiinquished his one-thiid
share in the bank he had to make the arrangement al
luded to- whereby money had ito come into the
was. at the time OF its issue, and still SINCE
severely criticised and instead of increasing conf
dence. it had the directly opposite effect
When the resources OF the bank come to be still
further examined the prospect certainly docs not
his death held onethird share the other two-thrds
must have been held by the remaining partners
Messrs Tweedy; but the nature OF the resources of
the Messrs. Tweedy are, far is known somewhat
intangible. Generations Of inanciering may have
enabled them to accumulate capital but this appears
to have been invested almost entirely in commercial
undertakings, some Of which have never paid u
penny. Mr.. Robert Tweedy being chairman of the
Cornwall Railway it is presumed that he held largely
in ii. But return has been got IL. The
real estates of the family to he NIL that in
that direction there is very little hope for the
creditors.
THE SEQUEL OF THE CIRCULAR
On Saturday last, the 4th inst the partners, still
the following circular which brings the record of the
sad events far they have at present devel-
oped:-"Dear sir-we deeply regret to say that in
consequence of the injurious rumors which have
been In circulation severe pressure has been placed
upon the bank. and We have, unfortunately, reason
apprehend that it would further increase. We
have therefore felt it to be duty having regard
to the interests of the general body of creditors.
to suspend further payments for tho present. Our
books will immediately be placed in the hands of
Messes. Harding Whitney Co., Old Jewry. Lon
don. public accountants. who will prepare full
statement OF our affairs, to be submitted to meet
ing OF our creditors at the earliest practicable
ment Yours faithfully, Tweedy. Williams Co.
FALL ''sToNE PUMP"
Thus one of the oldest private banks in the coun-
try which has during its career of century and
gone down before these last gradual. but long con-
timed and complicated adverse winds. The bank
had great deal of political influence in the city OF
Truro All the partners were prominent members
OF the conservative party. and Mt election times its
influence III favor of the conservative candidates
always exercised to such an extent that it came to be
Familiarity known by the nickname, given to II bv the
liberal party. of the "stone pump" or granite
qusres There can be doubt that individual
right stamp had plenty of accommodation" from
the bank and allowed largely to overdraw their
accounts But their position now anything but
an enviabe one for the alternative before them is an
immediate payment--wheresoeve they may obtain
the money-or. the Bankruptcy Court. In other re-
spects the country will suffer considerably because
the confidence in the bank great that many
public bodies had large sums Of money deposited
there.
THE NEW CATHEDRAL INVOLVED
Some CSC, 900 or more has been subscribed toward
the erection OF new cathedral in the city Of Truro,
following the appointment of the new bishop. A
portion OF this money-about f3,000-was deposited
in the Cornish Bank at the time that it stopped pay
ment, and this amount stands an excellent chance Of
being materially reduced At any rate, the new edi-
flee will have to take it's chance with the of the
aepostsors ioE ~ 'ne,r way as ca,nearas
them and ordinary individuals. 1t is hard lines,
doubt. tor the cathedral. but the individual suffering
which this bank failure will bring with il calls for
tar larger amount of public sympathy.
EFFECT IN FALMOUTH
In Falmouth, neighboring town, where Messrs.
establishment, nearly every public body and local
institution was in some way interested in the bank.
the locality. Already great many workmen have
been unable to obtain their wages ready cash not
being available Tor the purpose, and unless funds
can be obtained Mt the other banks much privatiou
must necessarily follow. The local institutions at
Falmouth connected with the bank are the Borough
and Parish local boards the Board of Guardians the
Sewerage Board, the Savings Bank, the Frecmasons.
the Penny Bank the Odd Fellows. Cooperative So
cicty. Gas Company, Port Sanitary authority,
sailors Home, RHO Corps. Harbor commits.
sioners, the Docks Company. Rural Sanitary
authority, Cornwall Railway Company. Falmouth
Hotel Company, Her Majesty's Customs, the Work.
ing Mems club and most of the charities. The
Hsr5or commissioners depostors in the bank to
the amount OF CT .0OO also the Gas Company;
the Board of Guardians deposit amounts 70 fG0O
and besides this tho church ofertories locked up
In the bank, well sum OF money raised tor tho
purpose OF questioning the legality Of tho rectors
rate.
A RrN AT nEpRurH-RANK or ExaLAxD NOTES RE-
FUSED.
At Rctlruth where there another branch Of the
bank, the announcement OF its suspension Of pay
ment caused the greatest alarm. Redruth IL tho
centre of tho mining district and when people began
"a contemplate the probable CONSEQUENCES OF tho
failure on the in tho neigkborhood, which
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