Carmarthen Bank
Encyclopedia
This was a bank
that was established in, and operated in, Carmarthenshire
during the 19th century. It became bankrupt in 1832 and its name was then adopted by another Carmarthenshire based bank.
by the partnership
known as Waters, Jones & Co., and probably developed from one or more earlier banks operated under the name of Waters and variously referred to in the London Directory, for the years 1811-1816, as Waters; Waters & Co.; R. & R. Waters; and Thomas Waters & Sons.
During the Panic of 1825
, the Bank of England
suspended cash payments due to frequent provincial bank failures, leading to a general run on British
banks in December 1825. In December, 1825 public meetings were held at the Guildhall, Carmarthen and at Llandeilo
, where votes of public confidence were passed in Waters, Jones & Co. and David Morris & Sons
. Both enterprises survived the 1825 crisis but, on 19 January 1832, Waters, Jones & Co. suspended all payments. The partners in Carmarthen Bank at this time were John Waters, Arthur Jones and David Jones, all of Carmarthen.
Attempts were made to avoid bankruptcy
, and on 7 February 1832, an agreement was drawn up which recited that the accounts had been inspected on 21 January 1832, and that assets were sufficient to meet liabilities. Under this agreement, Waters, Jones & Co. would meet all the assets of Carmarthen Bank under the supervision of inspectors, who were to receive the proceeds of realisation of the assets on trust
for the bank’s creditors. This agreement contained a proviso that if the partners of Sir James Esdaile & Co., bankers of Lombard Street
, London
, and certain other creditors holding nine-tenths of the value of the bank’s debts, did not execute the agreement before 1 May 1832, the agreement would be void and a commission of bankruptcy would be issued against Waters, Jones & Co. Although the partners in the bank, and some of the creditors, signed the agreement, the partners of Sir James Esdaile & Co., who were owed a large amount, did not. A fiat of bankruptcy was issued, and the notes exhibited at the Ivy Bush Hotel, Carmarthen on 11 September 1832, when a first dividend
of 5 shillings in the pound was paid.
According to one authority, the liabilities of Waters, Jones & Co. amounted to £300,000, and the failure of the bank was the result of ‘issuing notes to the extent of nearly £100,000 upon unmarketable securities, and making advances in opposition to every principle of common sense and common safety. Money was freely lent, without security, to drovers
to enable them to purchase cattle, and the wants of a large agricultural district were soothed in a similarly paternal manner.’ It may be that such harsh criticism was due to the writer being a heavy depositor in the bank.
to Carmarthen Bank. David Morris & Sons had been formed from the amalgamation of Morris & Sons, which he had established in Carmarthen, in 1791, and Carmarthen Furnace Bank
, which had been established by John Morgan of Furnace House, Carmarthen.
and Wales
that issued a bank note for £8
, Llanelly Bank
, and David Morris & Sons.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
that was established in, and operated in, Carmarthenshire
Carmarthenshire
Carmarthenshire is a unitary authority in the south west of Wales and one of thirteen historic counties. It is the 3rd largest in Wales. Its three largest towns are Llanelli, Carmarthen and Ammanford...
during the 19th century. It became bankrupt in 1832 and its name was then adopted by another Carmarthenshire based bank.
History
This bank was established in CarmarthenCarmarthen
Carmarthen is a community in, and the county town of, Carmarthenshire, Wales. It is sited on the River Towy north of its mouth at Carmarthen Bay. In 2001, the population was 14,648....
by the partnership
Partnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
known as Waters, Jones & Co., and probably developed from one or more earlier banks operated under the name of Waters and variously referred to in the London Directory, for the years 1811-1816, as Waters; Waters & Co.; R. & R. Waters; and Thomas Waters & Sons.
During the Panic of 1825
Panic of 1825
The Panic of 1825 was a stock market crash that started in the Bank of England arising in part out of speculative investments in Latin America, including the imaginary country of Poyais...
, the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
suspended cash payments due to frequent provincial bank failures, leading to a general run on British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
banks in December 1825. In December, 1825 public meetings were held at the Guildhall, Carmarthen and at Llandeilo
Llandeilo
Llandeilo is a town in Carmarthenshire, Wales, situated at the crossing of the River Towy by the A483 on a 19th century stone bridge. Its population is 1,731.The town is served by Llandeilo railway station on the Heart of Wales Line.- Early history :...
, where votes of public confidence were passed in Waters, Jones & Co. and David Morris & Sons
David Morris & Sons
David Morris & Sons was a bank which was established in Carmarthenshire, Wales in the 18th century. It now a constituent part of The Royal Bank of Scotland Group.-History:...
. Both enterprises survived the 1825 crisis but, on 19 January 1832, Waters, Jones & Co. suspended all payments. The partners in Carmarthen Bank at this time were John Waters, Arthur Jones and David Jones, all of Carmarthen.
Attempts were made to avoid bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, and on 7 February 1832, an agreement was drawn up which recited that the accounts had been inspected on 21 January 1832, and that assets were sufficient to meet liabilities. Under this agreement, Waters, Jones & Co. would meet all the assets of Carmarthen Bank under the supervision of inspectors, who were to receive the proceeds of realisation of the assets on trust
Trust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
for the bank’s creditors. This agreement contained a proviso that if the partners of Sir James Esdaile & Co., bankers of Lombard Street
Lombard Street
There are several famous Lombard Streets:* Lombard Street , famed for its twists and turns* Lombard Street, London, leading from the Bank of England to Gracechurch Street...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, and certain other creditors holding nine-tenths of the value of the bank’s debts, did not execute the agreement before 1 May 1832, the agreement would be void and a commission of bankruptcy would be issued against Waters, Jones & Co. Although the partners in the bank, and some of the creditors, signed the agreement, the partners of Sir James Esdaile & Co., who were owed a large amount, did not. A fiat of bankruptcy was issued, and the notes exhibited at the Ivy Bush Hotel, Carmarthen on 11 September 1832, when a first dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
of 5 shillings in the pound was paid.
According to one authority, the liabilities of Waters, Jones & Co. amounted to £300,000, and the failure of the bank was the result of ‘issuing notes to the extent of nearly £100,000 upon unmarketable securities, and making advances in opposition to every principle of common sense and common safety. Money was freely lent, without security, to drovers
Droving
Droving is the practice of moving livestock over large distances by walking them "on the hoof".Droving stock to market, usually on foot and often with the aid of dogs, has a very long history in the old world...
to enable them to purchase cattle, and the wants of a large agricultural district were soothed in a similarly paternal manner.’ It may be that such harsh criticism was due to the writer being a heavy depositor in the bank.
Successor in name
It was probably after the failure of Carmarthen Bank that David Morris adopted the name, and changed the name of his bank from David Morris & SonsDavid Morris & Sons
David Morris & Sons was a bank which was established in Carmarthenshire, Wales in the 18th century. It now a constituent part of The Royal Bank of Scotland Group.-History:...
to Carmarthen Bank. David Morris & Sons had been formed from the amalgamation of Morris & Sons, which he had established in Carmarthen, in 1791, and Carmarthen Furnace Bank
Carmarthen Furnace Bank
This is a bank established in Carmarthenshire in the 18th century as a result of the efforts of a Welsh entrepreneur and businessman called John Morgan. The banking business started by issuing tokens to facilitate an iron and tin works operation and then developed into a full-fledged bank...
, which had been established by John Morgan of Furnace House, Carmarthen.
Bank notes
The earliest known bank note for this bank is for £2 and is dated 10 October 1825. Existing specimens of bank notes issued by the bank are for £1, £2, £5, £8, and £50. So far as is known, it is the only bank in EnglandEngland
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and Wales
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
that issued a bank note for £8
Other Carmarthenshire banks
Other Carmarthenshire banks include: Carmarthen Furnace Bank, Llandovery BankLlandovery Bank
The Llandovery Bank was established in Llandovery in 1799 in the premises known as the King’s Head on Stone Street , where it remained for many years...
, Llanelly Bank
Llanelly Bank
-History:Little is known about the history of Llanelly Bank. However, the House of Lords Sessional Papers, of 1801-1833, record that the bank’s licence was renewed in 1812, and that the licence was granted to Richard Pemberton, the Elder of Barnes, Durham, Ralph Stephen Pemberton of Llanelli,...
, and David Morris & Sons.
