1833. Failure of Alexander and Company, Bank, Calcutta and West Cork and East India Company Connections with Some Military Service.
1833. Failure of Alexander and Company, Bank, Calcutta and West Cork and East India Company Connections.
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CSO/RP/1833/5063. Chief Secretary’s Office. Letter from Lyttelton Lyster, magistrate Rosscarbery [Ross Carbery, County Cork], to Edward John Littleton, [Chief Secretary, Dublin Castle], asking to be made a stipendiary magistrate, stating that he suffered financially from the failure of Messieurs Alexander and Company, Calcutta [Kolkata, India].
Thanks To Brian Limrick:
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The Private Bank set up by Alexander & Co. The Bank of Hindustan was the first bank to introduce Bank Notes for the first time in India. These Bank notes were representative money only. The actual money was Gold and Silver coins. The Bank of Hindustan maintained reserves of actual money i.e., coins of Gold and Silver which were known as Rupia. The notes issued by the Bank always contained a Promise Clause to pay the bearer the actual money (Gold or Silver) on demand in exchange of notes issued by the Bank. Run on is a banking term when some sort of panic is created among the general public creating a fear that the Bank is not able to exchange its notes by the actual money(Gold or Silver) and depositors start running towards the bank to withdraw their money from the bank. In modern day banking it is called Bank Failure. The Bank Of Hindustan faced such run on three times but it survived every time only because of the fact that the bank was keeping sufficient stock of actual money and only that much notes were issued which were backed by equivalent or more reserves. In commercial crises of 1832 the Bank of Hindustan was closed and went under its parent firm M/S Alexander & Co.
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West Cork History 