THE CITY OF GLASGOW BANK

Nelson Evening Mail, Volume XIIL, Issue 294, 19 December 1878, Page 4

THE CITY OF GLASGOW BANK

[Correspondent of London Times.']

It is difficult to describe, without, appearing to rxsggerate, the tremendous effect produced in Scotland by the revelations made by the investigators' report on tin? affairs of the City of Glasgow B 'uk. Enough had oozed out beforebfsn 1 ! to lead most men to expect (he sxpo3ure of a great fraud, bat there were' very few, though there were some, who thought that the fraud would bs so Ri^nntic in its dimensions, so systemntic and calculating in its procedure, or go shameless in the expedients niloDiod. The dominant feeling in the public mini* is that of indignant esssperotion. The case is so utterly black and scandalous that men can hardly trust themselves to characterise it,, end those who attempt to do so find themselves u'terly failing from lack of expletives strong enough and stinging enough to. convey their sentiments. These feelings, it connot be denied, are somewhat kept in restraint by the consciousness thafc. the national honor and credit arc seriously compromised by tho exposure; aud farther, by the reflection t'ce.t. the reputation of the Scotcli Barking system for soundness and eafoty h odco more put io perilous risk, I shall refer to this aspect of the case Bsjv.n, but I. do so now for the purpose of pointing out that, however intense the interest in the disaster and ihe BubEt-qurni events may be in London or in Lirerpooi, there are special circumstance in the case of Scotland which complicate and perplex public opinion on tho v/hcle situation.

What I have now said referß to tlje effect of (he revelations on the general public. Those who are more deeply interested in the concern, whether aa debtors or creditor^ have been still more seriously affected. To the unfortunate rb:ireholderß the blow has beeo eirnply crumbing. From the first the smaller holders regarded themselves as ruioed men, and it mast 'unhappily be added, ruined women. Bat the moseyed men in the list of the copartnory, i hough they were surprisingly few, were still hopeful. The case was a bad on«, no doubt, but they took blame to themselves for not having discerned, »s otbera had done, the signs of weakness in -their business. Nevertheless they wpre hopeful. The prompt action of the Government .in -Arresting the directors and chief officials of the City of Glasgow Bank has already produced a good effect. It !)88 thrown a liula welcome light into the prevailing darkness. It has furniehed the public with one point at leaat on vrhii;!i they may say that they are glad, and thia'ia. in itself a source of relief. When the fact became known in Glasgow on Sunday forenoon, men flocked to the Exchange, eager to talk over the latest phase of the great conBpiracy. 7. !>e aiacrity with which the Crown authorities have acted receives general praise, while many men are congratulating themselves that the law of Scotlp-nd .• enabled the Government to take up tbe car© at once, and that the prosecution was not left, as it would have been in England, to individual shareholders. Unhappily the prisoners have deprived themselves of the sympathy wbinhueuaHy. attends men of position when they are overtaken by misfortune. Yet they are surely to be pitied, cos co much because of what they are, as because of the splendid chances they have thrown away. No sadder Eptciaeleoould.be imagined than that of the cix Glasgow directors who were brought up at the police bar yesterday. They are all men over 50 years of age; one is 72, one is 74. They have all held prominent places in society, some of » hem responsible offices in the churches for many years; yet they stood before the magistrate charged with the crimes of falsehood, fraud, and wilful imposition. The precise nature of the chsrge should be. noted. Their trial will not be merely a Treasury prosecution for falsifying the weekly returns of gold held in reserve. Their offence is nee against the law of Scotland, and consists in "fraudulently falsifying tj.,, bobka of the Cily of Glaagow BaDking Company," in falsely and fraaduieady understating the liabilities" of the bank, ond in "preparing false balance-eheefa repeating the said false statements, snd submitting the same to the shareholders." Wbeu they come to be judicially oxnraiDetl, they will be

charqeJ with haring carried on these; fraudulent transactions for the period ;of' five years, and specific instances will be adduced, and proof of them will be given. ■' ■ . :