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Leader (1850-1860), 10th January 1857, Edition 1 of 2, Page 37, Untitled Article

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      BRITISH POLICY IN CHINAAn impartial account of tho recent events at Canton will be more useful to our readers than auy vague criticism on tho conduct of the Chinese or British authorities . On the 8 th of October last the Arrow , a small vessel at anchor at Canton , was boarded by a Chinese officer and a party of soldiers , who , in spite of the remonstrances of the master , an Englishman , hauled down the British flag , seized and bound twelve of the crew , an , 4 carried them away in awar-boat of large siap Mid heavy armament . Upon being informed of this proceeding , tho Jjyitigh Cojiajjl , Mj » ,

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      revenue appears to be to get up a bank ; and the beauty of proceeding by the regular forms of business is , that you can , make tools of the most influential men . You . may employ in your own behalf the servile worship of wealth and appearances . " ¦ The Story of the British Bank—How we got it up , and how it went down— "b y One Behind the Scenes , " is amongst the most interesting romances of

      commercial life ; and no part of life has been so productive in romance , lately , as the commercial . From the internal evidence of the pamphlet which we quote , * we infer that the author is Mr . John" Menzies , who was for a time the secretary to the bank , and for whom , in fact , the authorship of the scheme is claimed . His idea was , to introduce into Iiondon " the Scotch system of banking , ' * with its cash credits and its mode of

      deposit , extremely convenient to the ordinary tradesman . In passing , we will observe that the plan is very suitable for Scotland , and probably for small provincial towns , where men acquire , in ordinary business and in their social meetings , a direct personal knowledge of each other ; but it is unsuitable for London , where the classification of society has very little relation to habits of business ; where the customers of the same bank , for example , may be total strangers to each other by sight and by name , and where it is nearly impossible to delay business by inquiries into personal character or connexions .

      The idea , however , was natural , and had points -to recommend it . Mr . Menzies mentioned it to a Mr . Edward Mullins ,. of Great James-street , Bedford-row , a pushing solicitor , who was to get together influential supporters . Mr . Edward Moxhay was induced to believe that he could convert his unappropriated Hall of Commerce to banking purposes , and he for a time joined the party . But painful is the story of men who were drawn into the scheme , and who backed out of it , some after the first inquirynot

      , deigning even to send an announcement of their withdrawal . Mr . Moxh at was amongst the temporary supporters ; Mr . Joseph HoBiTBY , of Liverpool , was director of the British Bank for a short time ; Mr . Geouge Cbawshat , the eminent ironmaster , listened to a conversation ; Sir ^ Robert Cabden received a deputation ; but these , and other men of substance , figured on the scene only for a very brief period . We may , in some instances , guess at the reason of this taciturn coolness .

      One of those who was thought a ' catch ' for the project was Mr . John Ma . cgb . egou , M . P . for the City of Glasgow , formerly connected with the Board of Trade , a great authority in economy , commerce , currency , and such practical wisdom . He was able to talk with rhetorical force on the merits ot " the seestum ; " for Mr . Macgre <* ob , has the advantage of a strong Scotch accent , which imparts emphasis and a certain dignified

      homeliness to the expression of practical sentiments . Mr . Maogbegob had no property qualification fop a seat as director ; but a gentleman who joined the enterprise offered to qualify him . Atone of the meetings of the Banking Company , a Liverpool paper was produced containing tho report of a great Protection Meeting , at which a leading speaker stated that the Honourable Member for G-lasgow had been connected with a firm which failed in business at

      Livermately failed , and the chairman of the embryo hank was among the last to receive that test of his fitness to be a director ! It seems to have been got up amongst the other directors , in order to prevent the injurious effect of a report that the Chairman of the scheme had retired for want of means . Iiong did the project languish , there were meetings in taverns , private-rooms , clubs ; but there was little vitality until Mr . B-ichabd Habtley Kennedy , afterwards the Alderman , entered it . The real life of the project , - however , in its ultimate form , was a friend of whom Mr . Macgbegou had often

      talked—Mr . Hugh Innes Cameron . This gentleman had been introduced by the honourable member for Glasgow . He had formerly managed a branch bank in 3 £ oss-shire ; he had an intimate knowledge of" the seestum , " and a very emphatic mode of . address , not unadorned with pious allusions . " We have seen more than one pious banker ; and Sir John Deatc Paul appears to have had a splendid

      rival in . the manager of the Hoyal British Bank . Mr . Camebon became the leading speaker of the meetings . He was employed to draw up prospectuses for publication . He procured a person to contract for the advertizing of the bank ; another gentleman was induced to take shares on the prospect of being its printer . Mr . Menzies , the secretary , was sent on a visit to Newcastle , where an unusual number of shares were taken

      up on a promise that a branch of the bank should be established in Newcastle . It is true tliat the friends down there who invited the deputation proved to be without influence ; still , active touting obtained a good promise of support ; and this was due , as well as the first idea , to Mr . Menzegs . Before the bank had been established , however , a

      change took place in its personnel . Mr . HuttH Innes CAMEKCHir wrote a statesmanlike letter to Mr . Edwabd MuiiiiNS , the solicitor of the bank , saying— " You your own good self must be our R . B . B . Secretary , at all events j > ro tew . ; " and Mr . Menzies was politely turned out , with a compensation of 4 Q 01 . for his trouble .

      At last the Royal British Bank was opened for business in November , 1849 , with a paidup capital of 50 , 000 ? ., reduced by preliminary expenses , cost of buildings , fittingsup , &c , to something like 17 , 0002 . The capital was to have been 100 , 0007 ., but as that could not be raised , Mr . Camebon and his coadjutors consented to begin with the smaller plant . It was quite enough to work upon .

      When the Bank broke down , a debt of 30 , OOOZ . was brought out as due to the Bank by the General Manager . He had himself proposed that his salary as manager should begin at 1250 Z ., and rise by 250 Z . a year ; also -with a per-centage on the profits of the bank . But he had got something else out of the establishment . As soon as he was manager , the National Bank of Scotland , for whose branch at Edinburgh lie had been agent , began to press for payment of a large debt , contracted in the shape of a greatly overdrawn cash credit . To Sir James

      Mat-Manager ' s liabilities . Mr . Mullins , the joint solicitor and secretary , -who had a cash credit to the extent of 4000 Z ., overdrawn , besides advances to the extent of 8000 ? . or 90002 . more , lodged securities consisting chiefly of scrip in various defunct joint-stock companies—the Chartered Land Mining and Refining Company ; the Patent Brick and Tile Company . A cash credit on a security

      in the Cefn G-wyne Iron "Works , to the extent of 10 , 0002 ., began that speculative series of advances for utilizing the works which ended in sinking 100 , 0002 . Throughout all these transactions , men of the greatest respectability are found intermingled with these active projectors . One man whose position compelled him to understand manoeuvres of which he could not approve , appears literally to have become insane from trouble of

      conscience . The scenes described by " One Behind the Scenes" are more like incidents in a play than a story of London trade . A cheque paid in by a depositor finds its way into the pocket of one of the most conspicuous in the management ; and when revoked by the depositor , after a long while , it is paid in in the form of cash , the cheque itself never appearing again ! " Within a day or two of the grant of the charter , Mr . Kennedy expressed a desire to have the books and accounts of the bank up to that date gone over and . examined . This announcement was communicated to Mr

      Mullins , who , immediately afterwards , made his appearance in the . secretary ' s room , in a state of great trepidation , his face pale , and his lips quivering -with emotion . He addressed Mm thus ;—* I say , Meazies , they mean to go into the books and accounts to-morrow . ' 4 What of that ? ' was the answer of the secretary ; ' the moneys received by me on account of shares have been regularly entered and paid by me into the bank . So far as I ani concerned , therefore , I care not how soon Mr . Kennedy goes over the books . ' After a short pause , Mr . Mullins resumed , ' The fact is , Menzies , -when I was

      down at Newcastle , I received payment of 501 . on account of the bank , which I was obliged to use , laving a bill unexpectedly returned upon me . This , with other payments on account of shares ( jiaming the parties and amounts ) , makes me due 130 / ., for which I shall now give you a cheque , which you can pay immediately into the bank , and no one but yourself need know anything about the matter . ' He then wrote the cheque , which was duly paid into the bank . If these were not the precise words used on this occasion , th&y at least convey the substance of the conversation . "

      The mauvais sujets in the " Arabian Nights , " Ahou Hassan and his wife , who alternately pretended to be dead , that the Caliph and his favourite Queen may grant to the survivor a present for funeral expenses , did not contrive a more barefaced conspiracy than those who ultimately remained in pos session of the Royal British Bank . The story shows us that it was from first to last a pauper undertaking , dressed up with great

      buildings and handsome furniture ; while those who really managed it were guilty of the practices which we have in part illustrated . But amongst those who assembled at its Board as directors , amongst those gentlemen who met at commercial partieB or social dinner-tables , it would have been quite impossible before the disclosures to point to one or tho other and to say—That man ia the great mercharrk of high integrity , and that man ia the swindler .

      theson he owed 5000 / . for rents collected on that gentleman ' s account , and not paid in . Bills were drawn on a person in Jioss-shire , discounted at the bank , and employed , as far as they couldgo , to meet the Manager's liabilities . It is supposed that Mr . Cameron was partner in the speculative operations of a builder

      who had a discount at the bank of lO , O 00 Z . A Baronet to whom the General Manager was deeply indebted , had a cash credit to the amount of 10 , 000 / . ; an accommodation which puzzles and perplexes people , since the Baronet was a man of immense wealth , and not at all likely to need such an accommodation , unless iij were as a kind of security for the

      pool , and that the creditors had been offered a composition of something like 7 ^ d . in the pound . Even tho gentleman who would have qnaliBed the defaulting M . P . himself , ulti-

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      • The Curioua and Remarkable History of the Royal British Banhy showing 4 t How wo got it tip , " and " How it went down . " By One Behind tho Sconoa . Emngliain Wilson .

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      jAarpAttY 10 , 1857 ] [ THE LEADIR . 37

  • Citation
    • Leader (1850-1860), Jan. 10, 1857, page 37, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/vm2-ncseproduct2175/page/13/