THE BANK OF DEPOSIT.

Otago Daily Times, Issue 127, 12 April 1862, Page 6

THE BANK OF DEPOSIT.

(From the Mercantile Tint.) There has been un fraudulent Joint-stock Bank so dexterously managed as Mr. Peter Morrison's Bank of Deposit. He hits made every depositor of" money .1 partner. One partner cannot prove against the estate ot another partner. The consequence is that the depositors of the Bank of Deposit are utterly powerless in the bankruptcy of Mr. Peter Morrison.

Mr. Linklater thought ho liad done -a dexterous thing in adjudicating Morrison a bankrupt. He culculated on having another Royal British Bank examination of all the directors; but he has been mistaken for once. He tendered a proof the other day iv Morrison's bankruptcy, by one of the depo>itors, which was rejected at ones, on the ground, that by the terms of the deposit, the depositor became a partner. The registrar naively remarked, that Mr. Linkiater could hardly be serious in tendering such a proof; and Air. Liuklnter, of course, meekly submitted.

Mr. Peter Morrison's estate will pay 2Us. in the pound, and more. He is on the very best terms with his own creditors. They vo:ed him four guineas a week for the support of hi 3 family; and .they elected his own butcher to be assignee in his bankruptcy. 'i he next step, no doubt, will be to remove the case from the Court of Bankruptcy, and carry his discharge under the new arrangement clauses, by which ii majority binds the minority; but there will be no minority in the case of Mr. Peter Morrison. His creditors will receive 20s in the pound, There can be no minority, therefore, to object to Mr. Morrison's order of discharge. Mr. Morrison's discharge so carried under the new Act, will in all respects, be as good and valid as a first class certificate under the old Act. Before Mr. rfelwyn has got hall way through with his examination of the directors in the Itolls court, Mr. Morrison will be a discharged bankrupt, as free as the air, and quite in a position to start a new Bank of Deposit. Had Mr. Liuklater just done nothing, and let the proceedings go on before the Rolls Court, Mr. Morrison, as a contributory, would have been compelled to contribute his share of the loss, or more than liis snare, in the discretion of the Master of the Rolls; but Mr. Linklater.by his adjudication of bankruptcy, has placed iv the iiauds of Mr. Morrison's own butcher his own private funds to pay all his creditors in full; and over and above to purchase a full and complete discharge of all obligations of what kiiultsoever. Never did one man do a better turn to another, than Mr. Liuklater has done to Mr. Puter Morrison.

With regard to the management of the bank, his influence over the directors seems to have been marvellous. They did just as Mr. Morrison told them. His power over them appears to have been mesmeric. They seem to have thought through him; learned through iiim; and knew just as mtic'i as he chose tiieui to know, and no more. A remarkable illustration of this occurs in a strange transaction regarding a policy of insurance. A policy of insurance was hought'by Lord George Pagret from a Mr. Macardy for ±'000, and very shortly afterwards, Lord George, who was himself a director, sold this same policy to the bank for three thousand five hundred pounds. Lord Keane, another director, and Lord Piiget's intimate, personal friend, was examined on this transaction. Mr. Sehvyn asked Lord Keane to explain this extraordinary aiEiir, which took place in 1853. Lord Keaue answered, " My memory does not carry me so far back." Mr. Selwyn reminded Lord Keane Unit the transaction took place only in 1853, to which iiis Lordship answered, " I do not know anything about it." Lord Keane was then asked what the capital stock of the bank was. To this he answered, ■' 1 never understood what the capital stock of the bank was." To questions relating to the bye-laws, he answered, " 1 do not know any of the bye-laws—l never saw any copy of them." Under this system of management, Mr. Peter Morrison has had the uncontrolled sway for 13 yi.'ara over the savings of a multitude of victims, amounting to three hundred thousand pounds and upwards, the whole of which, with the exception of a comparative* triiie, has disappeared with Mr. Morrison. With several Peers of the Kealm in the direction, tho depositors relied with perfect confidence on the honor of the board, and the safety of the bank ; but r.he rcwlatioiis in the Rolls Court day by day, show how woefully they have been mistaken. One thing, however, is certain, the attention of Government has !»eeu attracted to the subject; and the probability is, that those noblemen will very soon be called on to •mswnr in a court of criminal jurisdiction* for the r'g.itful amount of social responsibility which they iiave incurred iv the affairs of the Bank of Deposit.