Hide Articles List

5 articles on this Page

",.....« MISSING."I

EPITOME OF NEWS.

MX TSA, OR DIN A B Y AND MYSTERIOUS…

ATTEMPTED MJJRDER AND SUICIDE…

STOPPAGE OF THE BIRMINGHAM…

News
Cite
Share

STOPPAGE OF THE BIRMINGHAM BANKING COMPANY. A telegram from Birmingliram on Friday Right says:- J nst now, nearly midnight, it has been determined that the Birmingham Banking Company will not open its doors to-morrow. It had three-fourths of all the accounts of the greatest of the trading community of this district, To say that, is to give some idea of the extent and severity of the calamity. At this late hour we cannot enter into the details of the circumstances which have led to this disaster. It has arisen out of the la;vish advances made a few years since to one indi- vidual in particular, and many engaged in the iron trade. The amount of the deposits is about _^81,800,600, probably the total liabilities are over two millions. The number of shareholders exceeds 800. The company was established in 1821. Its paid-up capital at this moment is little short of £ 280,000. The contingent depreciations and reserve fund at the last report in February was £ 200,000. The original shares are £ 20, and a new issue of £ 20, with all paid up, but on the original shares no more than £ 4 3s. 4d. has been paid up. The dividend and bonus of late years has been -63 per share annually. Leas than two years since the capital was increased by the issue of 10,000 new shares (< £ 20 paid up) at .£10 per share premium. At that time the price of the shares was 14 prem. Within the last few months a gradual decline has taken place, and this day week the price was X6 prem. On Friday they suddenly ran down to £20, and on Saturday it began to be talked about that all was ipver, but very few people believed it. The shares were sold at £ 18 in the course of the day. On Friday a deputation from the company had an in- terview with some of the directors of the Bank of England, and applied for assistance. They were not successful in their application. It is said that approved security to a sufficient extent could not be given for the aid required. Tha liability of the individual share- holders is only limited by the value of their property, and so it may almost be taken for granted that the depositors will ultimately be paid in full. Whatever the loss may be, it will be sustained by the proprietary. The present staff of dIreotors in. cludes Colonel Barrows, Messrs. F. 1. Welch, Henry Van Wart, J. B. Payn, Thomas Pemberton, James Watson, John Ponoia, S. ■Lloyd l1 ostcr, W. M. Warden, J. T. Horton, aad Heaton. The London bankers are the London and Westminster Bank, and Messrs. Glyn and Co. Established in 1829, the bank was the first started in Birmingham on the joint-stock principle, and that being before the times of limited liability it was looked upon rather suspiciously for a while. It started on the basis of an old private bank- ing firm, that of Messrs. Galton and James, and had a very high reputation. Besides its head offices it had, when the stoppage oamo, branches in several of the black country towns. It was said to have ranked many of the largest traders and public companies, as well as the Birmingham Corporation, amongst 'its customers. The stoppage will cause immediate embarrassment and suffering to many persons. Not onlv in Birming- ham but in the large clasfcer of towns in its neighbor- hood, known by the general name of the Black Country, news has created the greatest excitement. Ihe bank was considered especially safe, and all sorta or people, from the wealthiest employers of labour to the poor and young beginner of business had accounts with it. It had branches at Walsall, Wednes- bury, Dudley, and Coventry, and at each of these places the greatest excitement prevails. It is to be hoped that the evils with which the stoppage is likely to threaten the industry of the district have been exaggerated; but nothing certaia can bo known for hosue days.