FAILURE OF THE CORNISH BANK.

Grey River Argus, Volume XXII, Issue 3318, 5 April 1879, Page 2

FAILURE OF THE CORNISH BANK.

Usually the failure of a provincial bank * makes but little impression beyond the locality in which it is situated, and this ia specially true in ordinarily prosperous times. In the midst of a protracted monetary crisis, however, such an event communicates a shock to the entire commercial community. This will account for the great uneasiness produced by the collapse of the private bank of Messrs Tweedy, Williams, and Co., having its head-quarters at Truro, with its branches at Foulmouth, Redruth. and Penrhyn. It came after a series of similar disasters in different parts of the country, and just when a more cheerful view of financial affairs was beaming to be indulged iD,' Throughout Cornwall the effect was calraitous in the extreme, while in London it had for several days a depressing influence upon the Stock Exchange, and revived again those agitating rumours of banking difficulties in some of the metropolitan institutions which were fast dying away. Not that the failure of the Cornish Bank was altogether unexpected, It had been in existence for upwards of a century and some of the best county families besides the mining and trading classes generally, were connected with it. The first whisper of a suspicion that there was anything wrong with its affairs wa3 heard a few months ago, on the death of Sir I Fred. Williams, one of the bank partners, and member for Truro. It transpired that Lady Williams intended to withdraw her late husband's share, amounting to L 500,000. This created much uneasiness, and led to considerable withdrawals, which ultimately culminated in a " run." To allay public anxiety, 'and distrust, the partners issued a circular to the effect that arrangements had been made to replace the one-third of the capital withdrawn, but the negotiations fell through at the last moment, owing to certain legal obstacles ; and as the " run" went on unchecked, the partners were compelled to stop. No authentic statement of the liabilities has yet appeared, but it is believed that they will not fall far short of a million. The liquidation is expected to prove' favourable, and at first hopes were expressed of a resumption of business, but these illusions are often indulged and rarely realised. Great consternation was excited by the rnmoiut that the Truro Cathedral fund, amounting to L 300,000, was deposited with the bank, but subsequent explanation reduces the sum to about L 3,000. The first meeting of creditors is fixed for the 28th inst., but there is a loud demand for the publication of a balance-sheet at an earlier date. The distrust produced by the failure has led to extensive withdrawls of deposits and customers' balances from other banks in the West of England, and something like a panic has siezed upon many of the depositors in savings-banks, but after a 1 time their fears were tranquUlised. For 1 the convenience of the public, who have suffered severely by the locking up of their funds, arrangements have been made by some of the other banks of the district to open branches in the principal towns of West Cornwall.