The Western Bank Failure and the Scottish Banking System

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1858. Excerpt: ... SHEFFIELD NEAVE, Esq., Governor of the Bank of England. Chairman (to Mr Neave).--You were Deputy-Governor of the hank when this inquirytook place last year?--I was. You are now Governor of the hank?--I am. I think it was about the 12th of October that you were first apprehensive about the Western Bank of Scotland?---Yes; we had no direct application at that time, but there were rumours, and we had intimations which made us aware they were in difficulties. Was there not a further change to 8 per cent, on the 19th of October?--There was; in the meantime the news from America continued still more unfavourable; there were additional failures; the Bank of France, in one week, had lost upwards of a million sterling; our bullion had gone down to 8,991,000, our reserve to 4,115,000, and we raised the rate to 8 per cent. On the 20th October, had you an application with regard to the Borough Bank of Liverpool?--That was our first application from the Borough Bank. What was the nature of that application?--That was an application generally for assistance, upon conditions which were not likely to be acceded to. What was the state of things on the 23d of October?--The applications for discount in the meantime had been a little more moderate than they had been in the previous week; the Bank of France had raised the rate to 7J, and Hamburg to 9, and there were no great pressure from Ireland. At that time, I think, about 300,000 in gold had left Liverpool for America?--It had. That was the date, was it not, at which the difficulties of the Western Bank began to engage your attention?--Yes; we had a deputation from the Western Bank of Scotland on the 26th, applying for assistance, and their liabilities were of that magnitude, their deposits being 6...