Scottish Banking(part 8)

''December 20th  1761- Archibald Trotter brought an
action against Cochrane and Murdoch ,and
Proprietors of one of the Glasgow banks(Glasgow Arms),
setting forth-‘That he had applied to the bank for
payment of about £3000 of their notes, and they had
offered him payment in sixpences; but in making
payment their servants had proceeded in a way design-
edly evasive and slow; that they had miscounted the
money on purpose to have a pretence of counting it
over again ; had quitted him in order to pay other
 people, and by many other arts had protracted his
 payments; on which account he had taken a protest
 against them, and he concluded for payment of the
sum with interest from the date of the protest, cost
of suit and damages ”

The defence pleaded from the banking company
was :-" That Trotter was sent TO and settled AT
 Glasgow by the directors of the two public banks
 at Edinburgh, as their agent,in order to pick up
the defender’s notes, and then to make a sudden
 run upon them in order to ruin their credit. That in
 such a case it was their right to defend them
selves by every legal method against so inviclious
 an attack. That payment in sixpences was a legal
 tender. That they were not obliged to keep all
 their servants employed in making payment to
him only, and that therefore they could not be
liable for anything further than payment of the notes.
Secondly, supposing there had been an absolute
refusal to pay, they could not be liable for damages;
because, being only a private banking company,though
thirty in number, they were in the case of any private
debtor by bill or note, who, if he refuses payment, can
only be sued for the debt, interest, and expenses, but
not for damages.”


(£3,000- TODAY = £37,000 approx)


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

Scottish Banking(part 6)

Scots Magazine, May 1756 (p.249)-

Two gentlemen from Edinburgh, with an agent,
etc., made considerable demands on the two
banks at Glasgow (Ship and Glasgow Arms)
 May 31 st and June 1st, 2nd, and 3rd.
 A protest was taken against the old bank (Ship),
that of Messrs. Dunlop,Houston,& Company,for non-
payment of £976 and £7000. Payment was offered of
the £976, in notes of the two banks of Edinburgh,but
refused and specie insisted for.

The gentlemen who demanded the £7000 were told
by the cashier that the Company’s notes were always
 paid at ordinary hours; but that so large a demand,
 after the ordinary time of doing business for the
forenoon was over-i.e.after twelve o’clock—-he did
not think proper,without previously advertising the
 Company, to pay till four o’clock afternoon ; and
they were desired to come back at that hour, when
 all the notes would be paid. Attendance was given
 at the banking office from~three o’clock afternoon
 till near five; and as the Edinburgh gentlemen
did not call as desired, an attorney was sent to their
lodgings. The principal person was gone out of town;
but the other, who was his agent or doer,was found on
the street,and required to repair to the banking office,
to receive payment of the sum demanded, the Com-
pany being always ready to pay their notes at proper
hours, in gold and silver, and Edinburgh bank-notes.


N .B .-The Edinburgh notes offered were those of the
Royal Bank, which were ''refused."



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