The Press.
London, England, 1857-11-14 00:00:00

pose to Parliament, upon its meeting, a bill of indemnity
for any excess so issued.

In order to prevent this temporary relaxation of the law
being extended beyond the actual necessities of the occs-
sion, her Majesty's Government are of opinion that the
Bank terms of discount should not be reduced below their
present rate.
Her Majesty's Government reserve for future considera-
tion the appropriation of any profit which may arise upon
issues in excess of the statutory amount.
Her Majesty's Government are fully impressed with the
importance of maintaining the letter of the law, even in a
time of considerable mercantile difficulty, but they believe
that, for the removal of apprehensions which have checked
the course of monetary transactions, such a measute as is
now contemplated has become necessary, and they rely
upon the discretion and prudence of the directors for con-
fining its operation within the strict limits of the
exigencies of the case.—We have, Sce.,
(Signed) PALmEasTos.
G. C. LEWIS.

The Governor and Deputy-Governor
of the Bank of England.
The effect of this letter was to ease the Money
Market at once. Confidence in great measure was
restored ; and it only now depends upon the Bank
to make a proper and liberal application of the
privilege granted i❑ order to calm public appre-
hension and alleviate pressure. The stoppage of
the Western Bank of Scotland had been expected
for a week past; but from the assistance it re-
ceived about ten days previously from the other
Scottish banks it was hoped that it might be enabled
to tide over the difficulty, though considerable
doubt was entertained in well informed quarters.
The bank opened on Monday morning as usual, and,
although the day was a very gloomy one in commer-
cial circles, from the suspension of the Messrs.
Dennistoun and other causes, the bank continued to
transact business as usual up till two o'clock, when
the doors were suddenly closed, and an intimation
was put up that the establishment had been com-
pelled to suspend payment. It was accompanied by an
intimation that everything would be paid eventually
in full. The announcement caused a feeling of dis-
may over the whole city, and a similar result will he
experienced over the whole of Scotland, for the
Western had branches in every part of the kingdom,
amounting in all to about 100. It is now well known
that this lamentable result has been caused by the
most reckless mismanagement, which left the bank
utterly unable to struggle against the present crisis.
Mr. John Taylor was appointed to the management
in October, 1852, and it has now been ascertained
that this gentleman has advanced the funds of the
bank in the most reckless manner to concerns which
were totally unworthy of enlarged credit. Four of'
these concerns have become bankrupt within the
last month. and the Josses by these houses alone are
estimated et not less than (100 0001. At the same
time the directors have exhibited very great negli
gence in overlooking the transactions of their
manager. Mr. Taylor was dismissed from his office
about four weeks ago, but it was too late to repair the
mischief, for an undercurrent of distrust had sat in
by which the deposits were in the course of being
withdrawn to a vast amount. Looking to this aug-
menting drain and the great mass of American bills
becoming due in London, the other banks found it
was hopeless to attempt to sustain the Western, and
hence the catastrophe. The bank had a paid-up
capital of 1,500,0001., and previous to the setting in
of the withdrawal of the deposits it was understood
to hold deposits to the amount of about 5,000,000/.
sterling. Its banking powers were thus set down as
more than seven millions sterling. It is consolatory
that not a farthing will be lost by any but the share-
holders, who amount altogether to 1,200 persons.
Among them, however, there are a large number of
widows and orphans, whose whole means had been
invested in the bank shares, which of late years have
paid a dividend at the rate of nine per cent. There are
also in the proprietary many of the most wealthy men
in the kingdom, of whom may be mentioned four of
the brothers Baird, of Gartsherrie, who are well
known to be able to pay the whole of the losses of
the bank out of their own means, if this were neces-
sary. By a little patience, therefore, every person is
certain to be paid in full. The present directors
are,—Mr. Thomas Dunlop Douglas, of Dunlop,
deputy-governor ; Mr. James Dunlop, Clyde Iron-
works ; Mr. Thomas M'Call, merchant, Glasgow ;
Mr. Thomas Douglas Graham, merchant, Glasgow;
Mr. Thomas Gray Buchanan, of Salston ; Mr. Alex-
ander Baird, of Urie ; and Mr. William Logie, Hale-
side.
With regard to the effect of all these bank stop-
pages and mercantile suspensions upon trade
generally, it is too early yet to speak with any con-
fidence of the result. The state of trade in the
midland manufacturing districts is depressed and
unsatsifactory. Most of the mills are running short
time, working only four days a week ; several at
Blackburn, Bolton, Heywood, and Bradford have
stooped, and distress among the operatives is becom-
ing general. In Glasgow some of the most extensive
mills have closed, and in the north of Ireland large
bodies of operatives are thrown out of work.