Star. — London, England, 1825-12-15 00:00:00

. I NIP twe not perfectly opulent. That might tfe the • case ; but when a storm like the present was raging, though the rottettiuit might fall first, the ripe would follow'. Bat it was impossible for any one acquainted with the general character of the Bankers of London not to be convinced that nineteen-twentieths of them were sol vent, and as much deserving of public and individual confiscate as any Gentleman present—(Applause).— There was no city in Europe in which the banking system* was founded ss much on real property as in London. All, therefore, that was necessary at the present ne.ment was, to inspire a feeling of confi dence; and ter this purpose something should be done to meet the immediate necessity of the case, without eefesence to general principles. He wished that there should be no discussion about a recurrence to an un limited paper system—(" At")—or any other theory.but that they should endeavour to app'y a special remedy to a special grievance —(Near). The great and desir able object was, to create a feeling of c nfidence to wards persons who were deserving of it. Il any person voild venture to state that there were grounds for a want of confidence in the London Backers, that, to be sure, would alter the view which he wished the Meeting to take of the question. But if, as he maintained, it was impossible to doubt their solvency, let their cus tomers shew that such was their opinion, by allowing their cash to remain in their Bankers' hands. It was the timid who, by making double provision for their necessities, produced the present distresses. He, for his part, had made no provision against his Banker. He had kept his account late.y as it always stood ; and if his Banker shnuld stop payment (of which he had not the slightest apprehension), he should be less ashamed to ice the balance due to him in his books, than to have it said that he had distressed his Banker by sel fislitY hoarding his sovereigns —(Loud opplawse).— Under present circumstances, individuals should con sider that they had an important public duty to per form, and that it did not become them to act under the influence of mere noise and clamour. They should shew by their declarations and their conduct, that they considereJ the Bankers worthy of confidence.— Such an example was even more necessary with respect to country than London bankers. Country people sel dom reasoned about the probability of their banker stop ping payment ; the moment they got the idea into their heads that it was to be, they never could get rid of it until they brought about the event which they most dreaded. When it was considered that there were about eight hundred country banks, each drawing upon ionic Bank in London, which, in its turn, drew upon the Bank of England, it was almost impossible to say what calamities might result from a panic, arising in m ist instances from ignotance, but sometimes. he was compelled to say, created by malevoie, ce—(tiear,he4r). It was desirable, therefore, that some declarat on should proceed from the principal Merchants and Traders of the city of L•ndon, who had been acquainted with the characters and transactions of their Bankers for Yeats, to -put a stop to the present panic—(Cried of Move") The same thing might be done in the country, in the banking districts. This con se had been pursued on the occasion of the stopping of the house of Sir Wm. Lifistd and Co. at Piymouth, and it had the effect of calming the minds of the timid, and thereby prevent ing further disasters. He anticipated the most belie& cial results fioni a declaration proceeding hone the centre—the very heart, he might say—of the kingdom, • expressing entire confidence in the banking establish ments, and stating that the pte:ent alarm arose from. a mete chimera, and rested on no substantial foundation— (" More") —tie M as not prepared with any proposition to submit to the Meeting. but on account of the im• portance t f the subject, and the expressed wish of the Meeting, be would utieertake to franc a Rewluti .n for their a, option—(uve.t Ape:ye). After a short conversationbetween the Gentlemen near the • Lord Mayor's chair, it was arranged that Mr. Baring, Mr. Irving, and Mr. Witten, should retire and draw up some Resolutions. Those Gentlemen accordingly left the room, and after a lapse of about twenty minutes returned. Mr. BAII/NO sai.o, that though the Resolutions which lie had drawn up Mere very concise, yet he had found it necessary to take some little time in drawing them up, on account of the great importance of the subject to which they telerred. He could not say that the Re solutions were framed exactly as they would have been if he had mote time to deliberate upon them. The Meeting would consider them as having been hastily drawn up: and therefore, if there was anything either in their substance, or in the form of expression, vihich any person might consider objectionable, he had no desire to prevent it from being altered, if the Meeting should think fit. He begged leave, however, merely to suggest, that •it Gentlemen did not object to the Reso lutions in substance, it would be as well not to express any diffeteiae of opinion on minor points. He M as inssucedao make this observation only Isom a desire that whatever the Meeting did should bear the appear ance of unanimity. If the necessity of the case had not been so urgent, it might have been advisable to wait until the Resolution's could be submitted to a larger Alerting ; but at the present moth, nt, when Louses were tumbling :swami them, it would be culpable to delay for twenty-four hours. The 1-I on. Gentleman then moved the folloe leg Resolutions I. That the um recedented embarrassments and difficulties under which the circulation of the country at present labours, are mainly to be attributed to a general panic, for which there are no reason able grounds. That this Meetitighas the fullest confidence in the means and substance of the Banking Establishments of the capi tal and of the country; and they believe, that the acting generally upon that confidence would relieve all those symptoms of distress which now skew themselves in a shape so alarming to the timid, and so fatal to those who are forced to sacrifice their property to meet sudden demands upon them, which it is no imputation upon their judgment and prudence not to have expected. I. That it having been stated to this Meeting that the Directors of the Bank of England are occupied with the remedy for a state of things so extraordinary, this Meeting will refrain **stony in terferente with the measures of the Directors of the Bank, who, they !girl satisfied, will do their duty towards the public. Resolved, 5. That having the firmest confidence in the stability of the public credit of the country, we declare our determination to support it to the utmost of our power. These were the Resolutions which he had prepared. and he thought that they contained no more than an expression of opinion which was due to the general mais of Bankers. Mr. Dixon begged leave to seggest, before the resolutions were wernoledoltat it was of the utmost important* that they should go before the public as won as ressibie. Mr. lays ma agroJ with the lion. Gent. as to the neces sity of the result of their proceedings being laid before the public eye with all possible dispatch. berising to se- Grind the resolutions which had been proposed by his Hon. Friend, he would trespass on the attention of the Meeting for a very short time; for, after his Hon. Friend, with all his knowledge and ability had discussed the subject at so much length, it . would ill become hith, pressed as they were for tins% to occupy any con • eiderakke portion of it. It must strike every other per sin as it did him, that in a country which exhibited IL veery • symptom .of wealth and prosperity, a necessity •-..: 'Oft• I should exist for such a Meeting as the present. was impossible to attribute it to any other cause than that pointed out by his Honourable Friend—nam ly, a panic and unfounded alarm—(Hear, hear, hear) There could be no doubt that the prosperity of the country rem.sined unshaken —that the few fleeting clouds which at present darkened the else brilliant prospect, would •speedily pass away. That even the best and most wealthy persons were suffering under the present pre-sure, could not he denied. He trusted that the proceedings of the present Meeting would have the effect of allaying the alarm wh ch destroyed confi dence, the want of which alone was the cause of the existing suffering. 44 My Honorable Friend said, that solvent houses had fallen victims to the panic. That is, unfortunately, too true. I have been engaged in examining the affairs of the house of Sir Peter P.,le and Co. the first which fell a victim to the panic, and can state, as the result of my examination, teat after paying every claim upon them, the house possesses a surplus of 170 0001. besides the landed estates of Sir Peter Pole, and 100,0001. elsewhere"—(Hear, hear). It was impossible for him to say that the accounts laid before him were correct ; but supposing them to be 0, that which he had stated was their result. The.know ledge of this fact might have the effect of removing the anxiety which the creditors of that house must at present feel—(Hear). He would not now do more than stare, that he cordially sec tided the resolutions, and trusted that they would, in some measure, :die• viate the difficulties of the commercial iateresr. Mr. Alderman Wools, as one of the originators of the Meeting, expressed his warm approbation of the resolutions. He was convinced that it was oily neces• sary for Gentlemen to allow their balances to remain in their Bankers hands untouched, to restore immediate confidence and security—( Applause). The LORD Myron was about to propose the resolutions, when Mr. PAMIR objected to the word "duty" in the second resolu tion. He did not, for his put, know what duty the Bank Direc tors bad to perform. Mr. S. Duccur said, everybody knew that the Directors had a duty to perform ; and blr. Parker not pressing his objection, The LORD blaToll put the resolutions, which were carried una nimously. Mr. Wu...on expressed Ids gratification at the passing of the re solutions, and his pride for having been instrumental to the measure. Mr. Alderman ATKINS requested the attention of the meeting to, a few observations. The house of It 'ben Williams, which had been compelled to stop payment in consequence of the extraordinAry run upon it, was, he it tew, at the present moment capable of giving se curity to the extent of half a million —(Hear, They would have been able to meet all dentin is; bad they not been obliged to send 400,0004 to meet a run upon an establishment elsewhere. Everybody who' had the pleasure to be acquainted with Mr. Robes t Williams knew him to be a most honourable man, and there WAS none more deserving of credit—( Hear). The Loan Mayon here observed, in reference to some observations which had been made in the course of the day on the number of persons attending the Meeting, that it had been considered necessary to limit the• num ' ber, as, in a more numerous assembly, considering. the present agitated state of the public mind, it would have been impossible to come to any deliberate result. A Gentleman present then informed the Meeting, that the house of Wentworth and Co, possessed assets abundantly sufficient to satisfy all demands upon them --(Loud applouse).—Besides that, the house had been promised the greatest assistance, and it might be ex petted in the course of a few days to resume its pay-1 menu—(Hear, hear).—Onet •ct I.e would state, which ' was highly creditable to ywfig Mr. Wentwr.rti . The family estate was entailed ;. bist Mr. Wentworth, junior, had proposed to cut off t..e entail. aid throw .dill :he property into the batik. The promulgation of such facts a. the,e, wh tit had been stared in the course ni•thr day, might tend to allay a panic, unprecedeuted,fre lelieved;- in the loamy set com Hear). Mr. Bantuc then moved, and it was Resolved unanimously-4 That it is the opinion of this. Meet• ing, that declarations of a similar description with the present, in the Country Towns where the Banking itatablishments may appear to deserve them, may be productive of much benefit in restoring ge neral confidence. Mr. lowan; seconded the resolution, which was put from the chair, and carried unanimously. A long discussion ensued upon the question, whether the reso lution should be signed by the Lord Mayor on behalf of the Meet ing, or whether each person present should attach his signature to them on the spot ? Mr. Alderman GAMUT! thought it might appear to the public, if the resolutions went forth with the name of the Chief Magistrate ' only subscribed, that the individuals present had shrunk front the responsibility of attaching their names to the document. Mr. Alderman Woos, and others, on the other hand, urged that arrangements had been made for publishing the revolutions hi the Evening Papers, which object would be defeated if every individual present were to subscribe his name to them. At length the following resolution. proposed ►y Mt. Baum, and seconded by Xlr. layout, was agreed to t 5. That the Right Hon. the Lewd Mayor be authorised. 'and ►e is hereby requested to sign the above Resoludons on behalf of this Meeting. and to allow the sante to lie for signatures at the Mansion House. The Loan Mayon having vacated the Chair, and Mr. Rama having taken it, it was moved, and carried una bb 000 *Kitty, that the thanks of this Meeting be given to the !tight lion. the Lurd Mayor for his able and judicious conduct in the Chair. The Meeting then ►roke up. THE PRESENT STATE OP THE MONEY MARKET. PROM TilE TIMIS. Another day of agitation and alarm has passed ever in the City. As early as ni.te o'clock in the morning, it was asc ruined that two of them had suspended their payments, viz.—Messrs. Sikes, Briaith, and Co. and Messrs. Evers}t,Walker. Maltby, Ellis, and Co. of Alansicni4ifinse-Sireef. - Me stoppage of these houses was announced in the STA Rof )e terday3 Mr. Everett, the head of the second firm, is, we believe, the 1L..- ceiver-Generil for the 'County of Middlesex, and was thought possessed of much landed and other property. The Messrs. Walker, we understand, have este:hive iron-works in Stafford-hire ; and Mr. Maltby is con. cerked in arise large operations in the metal trade. 1 Twelve Country Banks drew on Messes. Everett, .but not any, we believe, on Messrs. Sikes and Co. The following placard was affixed at Mem:. Everett's : " No. 9, MASMIOV-1100iM eraser, 14th Damns& " Owing to the unprecedented state of general pecuniary distress. Messrs. Ev e rett, Walker, Maltby, and Co. are under the painful necessity of announcing that they uc compelled to suspend their payments. . • . " If the negociations now on feet with the Bank of England should prove successful, • they will be shaded immediately to resume' their business." The result of Messrs. Everett's application to the Bank did not transpire in any official manner, but it was understood on 'Change, that the partner through whom it was made was only offered a portion, some thing more than half, of the accommodation he soli. cited, and that be declined accepting it, in con ce of its being insufficient for the purpose the home bd - it view. r`- o,s rm;4:•:1 , ,-' !' The B-tnk Directors assembled again yesterday, and displayed touch energy in administering to the relief of the.persons who made application to them in various forms for assistance. Among the first of them was an eminent Country Banker, from a manufacturing town in one of the midlrnd counties, who had been in town the whole of Tuesday, vainly endeavouring to raise 50,0001. on securities worth Lit übli that sum. Yes er lay morning he learnt, by letters from his pat titers, that in consequence of the tailure of another Bank in the same town, the townspeople had assembled in a tumultuous manner to force, if possible, the payment of their n)tes, and that it had become nr cessary to call out t e military to preserve thepeace of the place. These circumstances had the effect which was to be expected, the Banker was supplied with the 50,0001. on the s:curiries which he had to deposi-, the greater part of which lie con vened into sovereigns, and set off immediate'y from Lombard street,in a post•cltaise,hu the place of his des. tination. The Bank Directors leave also given way on a point respecting which the i r have hitherto resisted all applicati-ns—viz. in lending money on the security of Government Stack or of Bank St tck ; and large sums were yesterday advanced on such securities, particularly to Country Bankers, who had to state that they were u table to convert thent into money in the open market, exe-rt at enormous sacrifices. It is further said, that the Directors have adopted a supgestion repe ledly nude to then by some of the leading capi talists, that they should purchase Exchequer B.lls in the open market, as the most direct and effectual way of supplying the deficiencies in the circulation. With respect to the lot eign and country bills which were presented to the Bank to be discounted, the Directors were said to be not only liberal but profuse in the ac commodation afforded, having cashed, we believe in nearly every instance, the whole of those Lffered by each individual. The energy displayed in the Bank Parlour has led to a corresponding activity in the executive department of that establishment. in the Discount office the labour of the clerks is doubled, and those in the five and ten pound note office are kept in attendance nearly the whole of the night, to get those signed which are to be issued on the following day. With all their exertions, it is said, they have not been Able to supply tire quantity required, and it has becootenecessary in some c .ses to issue notes which had been brought in from circulation —a circu ',stance which, in the ordinary practice c.f the Bank, is never resorted to. ,'foe counters of the Bullion office are beset the whole day by a multitude of persons waiting to convert bank-notes into sovereigns. • The drain of notes and specie for the Country Banks at this juncture is prodigious. One provinCial Banker 'lone carried with him nearly SOO,OOO/. on Tuesday evening. Aceording to the mode in which business is conducted by the steady London Bankers. it appears that the general practice is, and till the present moment it has always been considered a safe one, to reserve at most one-third of the deposits made by their customers, and to employ the remainder in discounting short bills, or other representatives of money, convertible at a short notice into cash. la reference to the Meeting at the Mansion house, it .may be proper to state. that the opinion of the leading Bankers was in op position to such a measure, and that they thought no practieal good could result from it. while it was possible that it might Increase rather than allay the generl ferment. PllO/1:1116 MEW TIMIS. • ,W.ll 2114W114.71/111‘4.0bterveJ - by Mr. Baring, at the Meeting 'of yesterday, that in a state cif alarm like the present, it is not the rash a '4l incautious speculator that suffers, it ' is the prudtnt and Ili right and ho• insurable Banker. Look at the facts (and - most im portant facts. they were) that were elicited in the course of yesterd ifs discussion. One eminent house has stopped with a surptus (After paying everybody twenty sh llings in the pound) of a hundred and seventy thousand pounds on the parcoers• , ip books, besi,ks large landed estates, and £1041,000 in the private pr'opei:y of the p4ltners. This is Sir Peter Pole's case. Another h use stops, with 500,000/. in sol , d. securities, and the landed property art the chief partner. This is Mr. Vil .iams's case. A utird stops, and is likely soon to resume business ; the he id of the firm has a large entailed estate of many thousands a year; and his son, with an honour- able feeling that does him the highest credit, declares he will joi•a in cutting t.ff the entail rather than suffer nis tatter's creditors to be hser s. Here, t en, we see that the want of confidence has been shewn towards persons in whom the utmost con fiJence:might and ought to have keen placed, both on account of tbeir p-operty and of their lir.nour. We see that the panic which has seinJ so many perm:: has been altogether Wild and indiscriminate. A relief is wanted which, though temporary, must he substan tial. The effect of o.e over-trading, in which the diffi cult es originated, was to wsilidraw A la•ge portion or o-at circulating medium: the effect of the-alarm was to wiihdraw• a much, lar g er portion; and the result of the i , that the actual mcney and paper in circulation is not shrlsairs much more, than half what it was a twelvemonth ago. The Declaration of the Merchants and Traders will at once stimulate and ju-tily the Bank t-f England in enlarging its i.sues, and in extending the sphere of its acconsmodationst it will justify the Government in secoading the operations of the Bank, directed to so laudable a purpose. We rh.ll not pretend to decide what are the most advisable methods for the Bank to pursue; only we say (and we believe both -the-Bnikki and the Government feel) that what is done shoild. be done quickly. The fabric of our credit is in flames around us. One establishment falls after another. Four great houses have already been sacrificed to panic— three or four others have made immense sacrifices to withstand a pressure. Aid must be given largely and liberally. In the words of Mr._ Baring, let us follow general principles in ordinary cases, but in an extra. ordinary emergency like the present,let us 'resort to an adequate though extraordinary remedy. PROM THE MORNING CHRONICLE. The folly or the panic is best proved by the circum stance, that were it to continue, it would involve the whole commercial world in a common rain. Nineteen twentieths at least, observed Mr. Barin g , of t h e Banker's were as sate men as it was possible to deal - with, but no extent of sacrifices could protect the most prudent and cautious of rn-n from a panic which would throw, doivn the soundest as well as the rotten. Can anything be more absurd than for men, who are not in immediate want ef ,money, to draw their balances from the bands of Bankers of the most. unquestioned stability ? It was stated .by Alderman Atkins, that the house of -Williams could have given the most solid se curity "for half a million, but that a run of between three and four. hundred thotisand pounds had been . made on them in a few days. Temporary pressures requite temporary expeiiints. The Bank may, with the utmost safety, issue on go Kt secnri:y, so long as the Exchange, are . s 9. Things will,soort *adjust them•elves - ; bin let the trinsi- illaPnotrelheadension ova., tion be made es easy at possible. th ere is , to danger of extravagant s p ecu l at i on br ga tei b li the contrary, the danger t o b e guarded a2s•ieo , excessive on e t im ex i i d s i t t s y . ;s n s Li d es a w n at the present moment. The accounts from the country agree • tep internal inteal industry , - in alm ost all its branch., a very thriving state. It is of the utmost con to keep this in mind. In the case of any de mi , of commerce by war, the op erat i ons of indo6 • necessarily suspended till new channels are o • This is real. distress, end net a mere question, or shorter securities. But at present a dema n d industry is supplying fresh weilth, a n d t h e circulating it will soon exist in the ne cessary m a r It Is admitted on althauds, that the Bank Directors to discount with great liberality ; and al t h ough therell;al much country paper done yesterday as disco the pr, e ,d i 4 " the amount was large—and in the town nts a t l d : anticipated that much will be done to relieve the a ct „i Y the public. We yesterday alluded to the misehi„ ms have resulted from the general disposition of , k egs . counts at private Bankers, to withdraw their balances ; this is still but too prevalent, and we ha ve h eard that end, deed new accounts have been opened with the Bank d whieb,We have sufficient reason to !show, have been releas e d establishments perhaps not less deserving of public cuaE, r i, e FROM THZ BRITISH PRESS. The Public Meeting yesterday at the Mansion-h will tend greatly to tranquillize the public mini; being no fear but that tie Bankers and Traci London, aided, as they no doubt will be, by t h e berative wisdom of Government, will adopt measures for restoring public confidence, as will fail to produce the desired effect. It will soon be that the apprehensions which have been so nefai' excited, were perfectly unfounded, and therm: l , with which the Bank of England has comf ort ,. aid of the private Bankers, will be everywh eteree as a sufficient guar ntee of theis solveitcy, an 3 .a stop to the present inordinate • run upon the, manifesting to the public not only that their land more than competent to sustain their credit, bst they were in a condition to have afforded the material relief in the exigency of private credit, b the causeless alarm which involved then ' i n t h ee rassments which it has so rapidly generated. One great can,' of pressure on the Lornbri Ban arising from this public panic, has been, thit not have their general customers drawn out their act but the various Public Companies and wealthy inr tions of the metropolis, who had always I.rge balances—an average portion of which luigtt al be reckoned upon as deposit—have been hkeoi , duced, by the different Directors and Comm:cc draw them out, from an unwillingness to incur any in a csi,is of such portentous uncertainty. The a ! , gate amount thus drained from the different Banker; has been immense. Bat for the excessive p .hat has been created, this would never hare ti place ; and as soon as it has subsided—as soon it do— the return of confidence ail! restore everythia its tor mer state, Itisquite certain that, in conseqnence of that sternation to which the good sense of so many has! way,much money will be h-arded up to provide ag contingencies ; much will likewise be sent to the e tty banks, to supply the demands occasioned by th 4 medic which the stoppage of some will throw, mo les, i!pon the notes of all: and unless the Bank ok land supplird the vacuum thus occasi ned in the culating medium, cr mmercial confidence would I no means to retrieve itself, and an utter subversio public credit would be the inevitable resn!t. FROM THE 110RNING HERALD. The Bank Directors, some time since, sere praised for tlr,ir liberality and great regard f rti in reducing the interest on the &scouting Ilk sto 4 per Cent. We said then that such ame was the completest encouragement f r gambliag kite-flying. We instanced Colombian or other l which paid an. interestAtf 10 per Cent. besides the pect of receiiiing, at some future period, Cent.per —that for which 501. was given, being probably hack at the rate of 1001. We did not speak exactly the price or the interest ; we merely mentioned things in round numbers for easier illustration said that here was a temptation for the concerti fictitious Bills of Exchange. That there was a tem. Lion for A, B; and C, to set up firms—draw, at and indorse—and get the Bank to discount at per Cent. That tl ere was an inducement to foie the Bank of England 1,000.0001. of paper : costing per cent. or 40,0001. a year ; and to go into the fore security or scheme market, and employ such 1,000, ' at the rate of 10 per cent. That there was in 1,0: 0,0001. a year, at a cost of 40,001. a gala 60,0001. a year staring men in the face—men n'h° need only to Lake counting-houses, keep a deal or t and a few cumbrous ledgers, sit still, and emplol t selves in writing names, as indorsers, drawers, in ceptors, er giving audience to a share at'd brokt r. and commanding him to purchase such such shares in schemes, er bits of paper cared fin . securities. That such modes for m,lcir.g tunnel resorted to, there can be no question. The small depositors its the several Bick'nq C. cerns, have occasioned the greatest rwns; they h been anxious to escape the possibility objaxger• large depositors in many houses have shown their c 6dence in them, by sending in, instead of drawing large sums; and by the latter mode would have,c, to ibuted to increase the panic. Several firms coma mentioned where this was the case; it has hallo ) Messrs. Esdaile's for instance. The Bank of England, instead of limiting its discom has largely increased them. • In proof of the i ncle ' of accommodation by that body, it may be ment ion that for - the 'last tnelve months, and till very late there were seldom to be seen more than three ( ! clerks In the" Discount On of the Bank of ' were nee 'very fully uccupied ;--yesterday sad the day that once there were thirty-three clerks, besides sedttano,,. q in ante-roonta, on account of the. bagasse of gab tam ~:k the clerks id such oft* did not leave their desks till Wee Wednesday anonslag o alit last eight they ex pected to be_ n _ al suchbk the extent of disterustiag business now lieitel of Zagilad, and itt s per Gat. r M r his 11011 MING ADVIRTISIW • IsTearropertrein guard d ea l er s in a nermanny 0 try like: this, against the consequence of re ial s , den demand of all creditors for payment. 04 ' e nn:ince, 9f 4 Banker, but to trade on the brayer ta, in hissliands, which he lends upon securities ciw, a4 at a short notice, while he keeps in his hatsdn i r oge ready money to meet ordinary demands __.;. s ab judicious he may have bien—i-however unetterL. be securities on-which he may have invested hin7 h4 it a ;. !udaJen denkand be.masle ..upos •him. lee t he ,... so insolent of the balance, while a similar cause, agrettog,, 9l , -- „ ca rki the same way,' [Genii Mr* into ibetnailLet to isa %Lis *possible cleat ha can purchasers, and raise _- _ S