The Express.
London, England, 1864-10-19 00:00:00

(REUTZIen lUMINa.)

THE COMMERCIAL CRISIS IN BRAZIL.
RIO DE JANEIRO, Barr.
The business of the past fortnight has been sud-
denly and unexpectedly interrupted, owing to the
stoppage of payment, on the morning of tho 10th
inst., of the important banking establishment of
Messrs. A. J. A. Souto and Co., and to the conse-
quences which immediately resulted therefrom.
By far the most serious panic ever witnessed in
this city immediately took possession of the public,
and a run commenced on four of the chief private
banking establishments by holders of receipts for
deposits One only of these firms withstood the
unexpected and continued drain on their coffers.
The other three resolved on closing their doors on
the 13th.

In the meantime many respectable firms had
been unable to meet their engagements, and the
utmost consternation pervaded the whole place
from the impossibility of knowing who would con-
tinue solvent and who succumb under the calamity.
On Sunday, the 11th inst., the Minister of
Finance met the directors of the Bank of Brazil,
who proposed under certain stipulations to take on
themselves the liquidation of the firm which had
suspended its payments on the previous day ;
nothing, however, could be arranged, and the con-
ference was agaiu continued up to midnight of the
following day. The difficulty which presented itself
was the expediency of satisfying an immense num-
ber of creditors, chiefly for small amounts, which
in the aggregate represented the formidable figure
of 14,200,000 dole.
In the meantime the run on the National Bank
for gold continued till the 14th inst., up to which
time the bank had paid away 3,000,000 dole. of its
gold, and in anticipation of the decree authorising
an increased emission of notes, the bank freely dis-
counted on the 12th and 13th inst. to the extent
of 14,000,000 dole., and thus alleviated much of
the immediate pressure on the commercial com-
munity.

The first decree relating to the events above
sketched was promulgated on the 13th, and em-
powered tho Bank of Brazil, in virtue of the law
of June 5, 1853, to issue notes to the extent of
three times the amount of its disposable capital in
gold.

This was followed on the 14th by another de-
cree, in virtue of the same law, in consequence of
the representation of the Bank of Brazil, granting
the said bank permission to suspend the payment
in gold of their notes, and making the notes of the
bank a legal tender in all public departments in the
city and province of Rio de Janeiro.

A meeting was held the same day at the Bank of
Brazil, at which were present some of the chief
creditors of Messrs. Souto and Co., as well as the
representatives of all the banks and banking esta-
blishments of the place, for the purpose of ex-
amining that firm's balance-sheet. No feasible plan
could be resolved on to meet the emergency, owing
to the very large sum due to numberless small cre-
ditors, and every one feeling that the responsibili-
ties of such a heavy advance were too great to be
thought of, notwithstanding the unanimous desire
of preventing a judicial liquidation of the suspended
bank. Besides a meeting and representation from
the members of the Prat's, another meeting was
convoked by the Minister of Agriculture, Commerce,
and Public Works on the 16th inst., which was
attended by the directors of banks and heads of
banking houses, but nothing could be definitively
settled. The government, however, having taken
the opinion of the Ministers of Justice and Finance
on the 16th, a Council of State was called at 9 p.m.
of that day, and it was resolved that a "suspen-
sion of payments " during the term of 60 days, to
date from the 9th inst., should be decreed.
We give an extract from a translation of the de-
cree which was published on the 17th :

"In consideration of the extreme gravity of the
oommercial crisis which at present weighs down
the commercial community of Rio de Janeiro,