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jewed from the fact , that the stock and dividend were not so highas they ought to have been in a wellmanaged bank , and under the favourable circumstancea in which all banking institutions were placed . This gave me a very stong impression that the affairs of the bank yrere not well managed , although I had ; no further ground for censure- In November , 1856 , Mr . Sellar ' s affairs took him abroad , and some time previous to his departure , I intimated to him that I should not feel satisfied to remain at the board unless the directors were allowed access to information which would enable them to judge of the position of the bank . I was informed that this would be laid before the directors , and the subject be immediately discussed . After Mr . Sellar left , I
from it with advantage , but I do hope that it maybe considered by you that , under the circumstances and difficulties of the position in which I was placed , it would have been impossible for me to have adopted any better line of conduct than that which I have done . It is obvious that when it first became apparent to me that the directors were nominal personages ,, instead of taking an actual and positive part in the management of the bank , then came the critical point of my connexion with you as , director . Now what was I to do ? I might simply
have retired from the office , and very fortunate would it have been forme in . the matter of personal ease and pecuniary interest if I had done so . But what would that have done in the way of benefiting the shareholders ? I might have run a muck against routine , and consigned myself instanter to the impotence of hot being able to effect anything . I preferred ratfter to abide my time and to see whether I could dp something towards amending a system which I felt to be wrong . The result is before you .
intimated the same to our respected chairman , and in May or April of last year , in order to prevent further delay , I had placed on the minute book of the directors a minute stating the amount , the extent , and the kind Of information that I thought ought to be placed before the directors , ia order to enable them to discharge their duty , instead of filling a merely nominal position . When Mr . Doherty ' s matter came on , I again placed on the book a record of my opinion that the nature of the transaction by which the loss was incurred was unbusinesslike , and ought not to have occurred . ( Cheers . ) I also stated that in my opinion the managing directors were as blamable as the manager for the loss . ( Hear , hear . ) It was then for the first
time that I became aware that the managing directors had almost as little control over , or knowledge of the affairs of the . bank , as the outside directors . Towards the end of June last , Mr . Cross called upon me in London , and stated that Mr . Smith was goipg to resign , and that Mr . Sellar was to take his place , and he asked me if I would become a managing director . -I assented . Immediately on my return to Liverpool , my first step was to inquire , into the condition of the bank with respect to the declaration or non-declaration of a dividend . The statement of thjs affairs of the bank laid before me by Mr . Smith ,.,-led . me to the conclusion that no dividend ought tnriae declared . ( Hear * hear . ) This view of the ifcase / stfis assented to at a meeting of the directors ; but
am Tflftrrnrrtin f : nft ** r- " — " *"_ suddenly convened , the decision was reversed by the board , and to which I yielded , the motive being , that it was very dangerous in the then position of the bank , to run the risk of the excitement that might be produced by the non-declaration of a dividend ; it might have resulted in a run , and the stoppage of , the bank . I acceded to it only on the understanding recorded in the minutes , that the statement to the shareholders should contain a full and correct disclosure : of the position of the bank , even although it should disclose the fact that the dividend was declared out of capital . The report that had been presented , well examined , shows the fact , although I do feel that it does not make the statement in the broad terms that would
have been adopted if -the intention had been to . state that there was , a very handsome surplus . Immediately on my return from London I was , made ad interim director , and during the whole of the month of July I was the only managing director present . After the meeting I was formally appointed managing director , and since that period nearly the whole of my time , up to the end of December , has been occupied by the affairs of this bank . It was a very difficult post , but I am happy to Bay that the new management has been on the whole remarkably successful and fortunate in the avoidance of loss , except such as the inevitable necessity of the case brought upon us , by the connexion of the , bank with so many insolvent houses . , About October last it became
apparent to me that the position of the bank was far worse than I had ever dreamed of , and far worse than those hitherto in the management of the concern had ever allowed themselves to think . I set to work and ihade up a statement of the position of the bank—of its losses , its lock-ups , its doubtful debts , and its doubtful paper—basing my estimate upon the knowledge that 1 had myself gained since the firat of August , in which 1 " W « Ui a 88 i 9 ted free'ly and'fuirly- by- all those engaged in the past arid present management of the bnnk—and I came to the conclusion that one-half of the capital of the bank was irrecoverably fjone ; this knowledge I am bound to > ay for myself only came upon me at that time * I was W > t in the least aware of ifc when the annual statement was'made to the shareholders in July , and I may also truly say that I believe none of those previously
concerned in the management of the bank were at all aware of it , or , suspected It ; trusting to a sanguine tompdraineht instead of taking a business-like view of the then existing state of things . It was then we became aware of the actual position of the bunk . The sequel of this wao a communication by me with the proper partis , »» - «« - ^ and ^ h « ttpplicatl (> n ^ sniped as you all know . I do think that directors have A duty 'to perform , and that they , are responsible for some sho-vwat any rate , of nttompt to perform it ; und 1 therefore feel it due to my ^ olf in tine position in which 1 have boon placed from the beginning , and in the sort of prominonco which circumstance * have forced upon ma '( hiring tho last few months , to nmkoHoino Htutomoirt es-[ cujpating myself from tho nppeuriinco of uthr nogloot of . Vfh ' at I confess to bo tho duty of directors . 1 do not nuppptyi that any one conoornod in this most unfortunate and' disastrous business can hono to extriuato himself
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—" With regard to the measures introduced for the government of India , Lord Palnierston produced a very good , a well considered bill , and one which everybody thought was likely to pass , but the Conspiracy Billcaine and interrupted its course . Another bill was introduced by Lord Ellenborough , one with a very considerable deal of ' clap-trap' about it . That bill had every prospect of being rejected ; but Lord John Russell moved that the house should proceed by way of resolution . This proposition was grasped at by the Government , seeing they had thus a good chance to escape , and a number of resolutions were adopted and made the foundation of a new bill , which will , go far to effect a remedy of the evils which existed previously . The measure was passed , and
I hope to see it productive of good to both countries . It is a good thing that we have at the head of the Indian Government a man so ' liberal and talented as Lord Stanley ; he has selected directors from both sides of the house—indeed , such a council as he formed for India haa rarely had its equal . " Speaking of the House of Lords , Sir J . Trelawny said : — " There is a body in the House of whom it was said that they accepted the Jew Bill but refused the Church-rate Bill , so as to compound the matter , and I am afraid we may have great cause to divide ourselves from the bishops , for the bill was smothered by a great avalanche of long-sleeved bishops . They were all-potential , and threw out the bill . I speak
POLITICAIi POBESHADOWINGS . Mr . DisitAELi . —Great expectations were entertained on Thursday at Aylesbury of some intimation from the Chancellor of the Exchequer of the measures of Reform which are to be proposed by the Government in the next session A prior engagement , however , and a 10 / . note were pleaded for the Chancellor's absence . His revelations , if he makes aiiy in the recess , may be expected next week at Buckingham . . Mb . Newdegate , M . P ,, os Progress ;— -At a numerous and respectable assembly at Coventry , on Monday , at which Mr . Newdegate presided , he said , in returning thanks for the health of the county members ( Messrs . Newdegate and Spooner)— " I thank 3 * 011 for the honour
you have done me as one of your members , and I will take the liberty , of saying here that I do not believe there are any two members representing any constituency who are more entirety devoted to the ; fulfilment of their duties than ourselves . I believe it is only by a firm adherence to those principles which- I have advocated , in Parliament , and upon which . the constitution of England is founded , that you can preserve intact the inestimable blessings of freedom which it is your privilege to possess . Be assured that if we wish the country to continue in a course of progress , arid I say " progress " advisedly ,- such a wish will be best accomplished by remaining within the limits of those principles the
practice of which has raised this country to its present state of proud pre-eminence . . . "When , others tell you that a Conservative has no right to speak of progress , pay no attention to them . For myself , I wish for progress . I desire to see all classes of the community advance , but I desire to advance within the limits of principles which constitute safety , and if there is any difference of opinion between myself and others upon this question of progress , it amounts to this , that 1 would prefer to see the engine of the State driven carefully and safely down the rails , while I at the same time entertain a strong doubt whether the Liberals , as they are termed , would not either shunt us into a dangerous siding , or land us at the wrong platform . "
Mr . Craufurd , M . P . —The member for the Ayr district of boroughs made a speech to his constituents at the end of the last week , which was chiefly distinguished for its reference to Scotch topics . Speaking of the last invasion panic , he remarked that the French were not fools enough to come over to . England in that way . " If , " said he , " they landed fifty thousand men , how : many of them would get back , and how much treasure , would they be able to seize ? " * Mr . Meixok on the Political . Future . —Mr . Mellor r M . P ., and Mr . A . W . Young , M . P ., have ad-, dressed their constituents at Great Yarmouth on tho past session and tho prospects of the future . Mr . Mellor said he believed tho property qualification was « shnm
and pretence , for ho know some members who opposed the . Into bill on , the subject who were sitting on n sham qualification . With regard to the suffrage , ho . waa anxious for its extension ; but he thought it would be a questionable measure unless it was accompanied by the ballot . Ho was prepared to support tho extension of tho suffrage on broad and general grounds , but believed it would bo a doubtful benefit if tho protection of the ballot was withheld . He believed the settlement of the Church-ruta question was essential to tho interests of religion and of the Church . Mr . Mellor said lio did not
go to Cherbourg , and ho thought it undignified for members of the House of . Commons to accept the loan of a steamer from a private company . If war should nt uny timo unhappily occur , Englishmen would have flQinetlfhi g more to ( jo than to » ing "Kulo Britannia . " Wo must takb care of our fleets , oe neitoor boastful'hor * fearful , but go on tho even tonour of our way , trusting In God , and " keeping our powder dry . " Mr . Young , in the course of his observations , said the present Conservative Administration dulcgated all their proper functions to their opponents , and were' unable to . carry a Single measure of their own .
3 ir John S . Trm-iAwn y , M . P ., at Tavistook . —On Monday Sir J . S . Trolawny , mdmbov for this borough , luUlresflotl his constituents . After alluding to his votes on tho Conspiracy JJ 111 and other questions , ho observed :
with respect , but 1 cannot think they were wise in their course , and I would rather they had assisted me , as they might have don * , with effect . and in a manner beneticial to the Church of England . " After commenting on other matters of minor importance lie reviewed the . ' position of parties in the House , and gave it as his opinion that the present Government could , not stand , because it comprised such opposite shades of opinion , and any future Government must , be s ^ , include in its ranks Lord John Russell , on whom as a statesman he passed a high encomium . He concluded by stating- that no government would stand any length of time which would not guarantee to introduce a comprehensive Reform Bill " .
. .. A Nkw Reform Bill ,. —The Observer publishes what it calls the New Reform Bill of the . Liberal party , as forwarded by the Secretary of the "Reform Association . " This production does not seem ; to be of any importance save in the way of showing- what may be done in the redistribution of members . We do ; not . find a -word in it concerning an extension of the suffrage , or the vote by ballot , or th , e shortening of the duration of Parliaments . There arc seven schedules appended , all referring to changes in reference to the distribution of members . Twenty-four boroughs , which now return members with fewer than four hundred electors , are proposed to be
altogether disfranchised . All boroughs not having one thousand voters each , and which return two members , would only return one , and of such there are forty-live . These changes would , leave eighty-one members to be disposed of , und how ? First , ten counties , or divisions of counties , having the largest population * , would get . one additional member each ; cities and boroughs of largest population would get the same ; three boroughs now returning one member would have two ; then there would be the creation of twenty-five new boroughs in places not now represented . Other arrangements arc proposed for transferring the remaining members .
Meeting at I ' INSBuuv . —A public meeting was held on Monday in the Belvedere , Pentonville , for the purpose of advocating political reform . The meeting was called together by tho local branch of tho Political League . A resolution was unanimously carried to prepare a petition to tho House of Commons for universal suffrage . CONSKRVATJIVK VllSW OF IlKFOItM . Wo llttVO 110 right to consider consequences ; our business is to "bo jiiat nncl fear not . " If any class deserve the franchise , give it thorn ; if any clnss morits tho withdrawal of that privilege , take it away from them ; if constituencies require enlargement , extend their area or increase their number of members ; if rotten boronyhs still exist ,
deprive them of the right of representation ; and all this on the principles of abstract justice and of political , propriety , not in order to gratify one or other party in the State , for that would bo to do exactly what was in too many instances the guiding motive of tho authors of tlip Reform Bill of 1832 . What may cnauo is in tho liaiula of Providence . The Conservative party may lose a preponderance in certain counties , and a few moinbors in the House of Commons both for boroughs and for countios ; they may bo depressed for a timo and thoir opponents encouraged to lay lmndn more boldly on our moat sacred institutions ; but thoy will gain tho credit of not sacrificing justice to pnrtj ' , and they ' will rocoivo tho willing tribute of respect from equity-loving andatnujj "'" forward Englishmen . —Constitutional Press .
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092 THE LEADER . [ No ; 444 , September 25 , 1858 .
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INAUGURATION OF THE NEWTON STATUE AT GHANTHAM . Tnis event was celebrated on Tuesday with grout pomp and coromony , nnd in the niiclat of n Vuwl oonoouruo o « persons , who wore nttruotocl by I ho oooimion , Inuliuung men of solonco from nil parts of tlio country . J ' " Uroughnm , who had boon rorjuowtcd to i > rowUlc , «;* ° " paniod tho prooosMlon to ' tho ultu ol' llui oUtuo . I" 010 wore also present the Mayor of Cinuitliom , Mr . Oallor ,
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Citation
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Leader (1850-1860), Sept. 25, 1858, page 992, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/vm2-ncseproduct2261/page/8/
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