Wednesday, 28 October 2009

Scottish Banking(part 17)

" In July 1793 a vast number of the private banks
throughout England stopped payment, tending al-
most to a universal bankruptcy. In Glasgow the
Arms Bank and Thomsons’ Bank stopped, although
ultimately both paid everyone. The Royal Bank even
was in sad trepidation-so much so that Gilbert In-
nes and William Simpson were accustomed to meet
with David Dale and Scott Moncrieff at the Half-way
House to Edinburgh, to discuss the position of bank
matters; and so terrified were they about the result
that they shortly afterwards increased their capital by
half a million. The misery, however,which was creat-
ed during that year among all classes was widespread
and severe, and may be easily conceived when it is
mentioned that almost all kinds of goods fell nearly
fifty per cent."

This crisis was so momentous as to deserve further
notice. Accordingly, the description by “Senex" is
here inserted :-

" In the disastrous year 1793, three of our Glasgow
banks failed, and the Royal Bank itself trembled at
the pressure of the times. William Simpson and
Gilbert Innes from Edinburgh, and David Dale and
Scott Moncrieff from Glasgow, were then accustomed
to meet weekly at half-way between the respective
cities, and there to discuss the position of bank mat-
ters; indeed, those times gave the Royal Bank such
a fright that it shortly afterwards increased its capital
by adding to it half a million sterling,thereby making
surety sure, as the saying goes.

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