The City was in a state of excitement on Wednesday.
In Lothbiny, the Chairman of the London and Westminster Bank informed the shareholders in their half-yearly meeting that "vicious and most reprehensible expedients" had been resorted to to 'obtain money from the Bank, and had caused the recent losses, and that the Directors had found it their duty to commence criminal proceedings against Messrs. Alexander and William Collie. The ." vicious and reprehensible expedients" were explained on the same day at the Guildhall by Mr. Poland, on behalf of the Bank, to be a conspiracy by the two brothers to raise money on bills which were really accommodation bills, but bore on the face of them certain marks purporting to refer to accounts of goods delivered. The books showed that the references were illusory. No evidence was offered, nor any defence, but Serjeant Ballantine, for Messrs. Collie, hinted that the Bank Direc- tors knew perfectly well the nature of the bills they were disc.ounting. Sir Thomas White said there must be a remand, and he must have heavy bail, £4,000 from the prisoners them- selves, and £4,000 from other parties. The bail tendered was 'objected to, and-Messrs. Collie were at last carried off in the wan. Mr. Poland stated in Court that though the prosecuting Bank 4beld only £200,000 of the bills, similar bills had been discounted to the amount of £1,500,000. There can be no doubt that to pass off one kind of bill as another and better kind of bill is legally a fraud, but the City finds difficulty in believing that power- ful banks cashed bills of such amounts without knowing accurately what they were. What are Bank managers for,, if they Cannot ascertain whether their customers-are doing large business or not?
