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.

Scottish Banking(part 16)

One of the smaller Glasgow banks, Messrs.
Thomsons’, which was opened on 4th October 1785
, was the sufferer by a remarkable robbery of notes
which took place on Friday night, 29th October 1791.
 A mahogany box containing £1600 in guinea and
 twenty-shilling notes,of Messrs. Thomsons’ issue,
 and twelve bills, which had been put in a small sack
 and sent on a carrier’s cart by Mr. Gavin Stewart
of Cumnock,addressed to the bank,was stolen off
the cart in going along the streets. A reward of £200
 was advertised, and " no questions asked.".

 On the 17th November following the box was found
 by a country lad while clearing out a dunghill in
Saltmarket, where it had been hid and never opened.
The reward was promptly paid to the lucky finder.

The Ship Bank used to be closed from one till two
 o’clock daily; and it was part of the duty of the youngest
apprentice to protect its treasure during the night,
for which purpose he was armed with a gun, powder-
horn, and a few charges of slugs, and locked in till
morning, a "box-bed" being fitted up in the telling-
room for his convenience. A bugle lay beside him
 to sound an alarm. For this dangerous service
 he received a present at the annual balance of
£1,10s,6d.

The year 1793 was one of extraordinary commer-
cial depression in this country, and particularly in
Glasgow which suffered at the time from the loss
 of its colonial trade. Dr. Strang writes thus of this
 calamitous period :-

(£1600 - TODAY = £181,000 approx)
(£200- TODAY = £22,600 approx)
(£1.10.6d - TODAY =£93.00 approx)
http://www.bankofengland.co.uk/education/inflation/calculator/flash/index.htm

More to follow..........