With regard to the failure of Gledstanos Ca., and long dated bills in the India and China trade, the Chairman spoke as follows:—During the six months there have been no losses with the exception of Gledstanes and Company. Another house has failed with whom we formerly had very large transactions; in fact we were their bankers; but I am happy tosay we escaped entirely. I may explain, some years ago their business carried on'in London rather startled us, and, having some grounds for suspicion, we sent orders to. close the account.' That was done, and the only loss, as you will see by the report, is that of Messra, Gledstanes, and Iam sorry to say itis a very considerable one and one that I need not say we exceedingly regret. It was a failure that startled us and every person in the City of London, You will naturally inquire why we gave credit tot house. The answer I give, is, not only was the credit of the firm undoubted in London, but we relied rightly or wrongly on the cumstarce that a partner in that firm was on the Bank of England board. We could not suppose, and I have been connected with the City of London nearly half a century, a firm represented in the Bank of England could be otherwise than solvent. We have been deceived, but I donot think that we or other banks are to_be censured for what can be considered no fault of ours. It is not for me to comment on the Bunk of England, but I do think that the pos tion of the Bank of England director very serious one, It is not like the direc for of a private bank, but of a government bank, and J think the duties of a Bank of England director are rather responsible, and I think he ought to be above suspicion reproach. The question of Gledstanes and Company's solvency was frequently discussed at our board. They have beet the subject of rumours from time to time, but the conclusion we always came to was, a firm represented in the Bank of Englan could not be otherwise than solvent. Per~ haps out of evil, good will come, and I am disposed to think that this failure will teach us and all other Indian banks useful lessons. There has been rather a disposition
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