Page:The Economic Journal Volume 1.djvu/564

 4'2 THE ECONOMIC JOURNAL Under these circumstances the Private Banks began seriously to consider the advisability of publishing periodical statements of account. On the one hand the success under this system of the Joint Stock Banks, and their growing importance and rivalry, pointed to the expediency of such a course; on the other, there was little or no evidence on the part of the customers of each bank, whether expressed directly or by the removal of their accounts, that they were dissatisfied with the old order of things. Business, in most cases, continued to grow, or at least did not fall off; no doubt the force of habit and tradition had weight in many cases with hanker and customer alike. Messrs Glyn, Mills & Co. were the first to move. In 1884 they re- organized their business, converting the private firm into & Joint Stock Company, but making no change in the proprietary. This entailed pub- lication of accounts, without disclosure of profits, so that publication of accounts was the only apparent evidence of any change. This occurrence created some stir at the time, and bronght still more prominently to the front the question of publication of accounts. The next important event in the banking fraternity was the failure of Messrs. Greenway & Co., of Leatfington. Although the fires disclosed were comparatively sinall, the occurrence created an impression out of all proportion to its intrinsic magnitude. This was specially felt throughout the Midland district. Not long afterwards Messrs. :Berwick, Lechmere & Co., of Worcester, published their balance-sheet, and at least one other bank prepared a statement of account for the private inspection of their own customers. It was thus clear, as had already been foreseen, that the position of affairs was now such that any unexpected incident might precipitate a movement in the direction to which the tendency was already marked; it hardly needed so startling an occurrence as the liquidation of Mess. Baring Brothers and Co. to bring matters to an issue The fall of this great house not only created a panic in which credit was temporarily almost destroyed, but also raised a wide doubt whether in the manage- ment of vast undertakings, and the disposal of enormous resources, it was expedient to trust to the uncontrolled discretion of a firm, or, it might be, of an individual. It became clear to bankers that public opinion )ow required, whether reasonably or unreasonably it mattered not, that they should publish their acconnts; it was also clear that the public were attracted by big figures, and that large totals went a long way towards securing an increase of business This consideration had weight when a decision had to be taken as to the method to be followed in the publication of accounts; and the importance attached t) it may be estimated by the result. Since the events of November, two Private Banks in London have merged themselves in larger Joint Stock Banks, while two others have combined with two of their country correspondents in a quadruple confederation; in the provinces at least a dozen Private Banks have been absorbed by Joint Stock Banks having head offices in their own neighbourhood or in London. The