CITY OF GLASGOW BANK COLLAPSE

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CITY OF GLASGOW BANK COLLAPSE

To say that the collapse of the City of Glasgow Bank was a disaster for Scotland is an understatement. Few, if any, of the families within the upper and middle classes in Scotland did not feel the effects of the collapse, if not within their immediate family circle, certainly through a close relative or friend. The directors of the bank were prosecuted and faith in financial institutions in Scotland was severally damaged. The only positive result of this disaster was increased pressure for limited liability to be more widespread, especially for institutions such as banks.

Ebenezer Hendry's shareholding \ liability with the City of Glasgow Bank

from the list published by the Otago Daily Times , 28 November 1878, Page 2

Complete list avalable on the web  HERE

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Ebenezer 111's 100 share worthless, but that he, along with the rest of the Shareholders would be held liable for 2,750, per 100 share held, a substantial sum of money in those days. Ebenezer 111 did manage to raise the money and stay solvent, seemingly by borrowing against a trust set up by his late father. When the affairs of the Bank were settled some four years later, on 1st October 1882, he was one of only 254 out of the 1819 original shareholders to avoid bankruptcy.

Alexander Williamson, Ebenezer's father-in law, was also caught in the City of Glasgow Bank collapse. His holding of 650 in shares would seem to have calculated out at a liability of 17,875, an enormous amount in those days, but he too seems to have avoided bankruptcy.

Information on City of Glasgow Bank shareholders and their shareholding, plus other information, can be found within the pages of Volume 11 of the "Glasgow Scrapbooks" held in the Glasgow room of the Mitchell Library, with reference to Ebenezer Hendry on page 18. Further general information can be found within "A History of Scottish Banking".

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