CITY OF GLASGOW BANK.

Oamaru Mail, Volume IV, Issue 808, 13 November 1878, Page 2

CITY OF GLASGOW BANK.

A London telegram to the Times of India gives the following important particulars regarding the failure of the City of Glasgow Bank:—"London, 4th October.—ln connection with the suspension of the City of Glasgow Bank, the city article in to-day's Times says that Smith, Fleming, and Co. are liable, for cash advances amounting to L 553,000, and for acceptances to the value of L 900,000 sterling. Another firm owes the bank L 770,000 for advances and L 1.000,000 for acceptances. A third figures in the list for L 1,200,000 for cash and acceptances. A fourth exhibits a debt of LSOO.OOO sterling, making a, total of L 5,823,000 lent by the bank directly or indirectly to four firms, the reputation of one or two of which has been anything but good for some years back. The advances granted to these four firms, coupled with the negligent system of general mismanagement, is the direct cause of the suspension, and is hardly short of criminal. It is now estimated that the bank will show a deficit of L3,G00,000, which to the knowledge of the directors and managers have been accumulating from year to year. Yet the dividends had been steadily increased.