BANK STOPPAGES.

Thames Star, Volume IX, Issue 3014, 12 October 1878, Page 2

BANK STOPPAGES.

(To the Editor of the Evening Stab.) 1 ! Sir.—Your *' editorial" of yesterday ; is in error in stating that the Roy il Bank bf Scotland stopped payment at the same time as the Western Bank of Scotland, ia< 1857. " The Royal never stopped paynient. It was founded about the year 1705, .with a capital, of two millions ster\mv, and is one of the richest banks in the world. Generally the Scottish banks 'are safe, and implicitly i rushed by »he public. The City of Glasgow Bank, which has so' disastrously collapsed, was never strong, and had to stop temporarily in 1857, at the same time aa the \/estern Bank, but resumed in about 10 days 'thereafter. It appears that since that time the deposits reached the enormous amount of £8;C .'»,C"O. The other Scotch Banks have already agreed, to pay £4,000,000 of the above amount,- and in that case the pressure will- be- greatly relieved. In the case of the Western Bank, the ojther Baiks took" over their business, paying everybody, 20s in.the £1. The collapse will most probably only have a local effect, although from the extent of \ the city transactions many inter, sts will - .be affected at Home and abroad. The collapse of this great financial concern will act as a warning to all similar institutjons'.to be on their gaard aga'nst doing other than-a legitimate banking business, and not to place their oapit..l in an unavailable position.—l am, &c, ! "".' r •',■ '.\: ' ■ '■ A SjDOT.;, , Thames, 12th October, 1878. , .