The Express.
London, England, 1866-05-12 00:00:00

THE :EXPRESS, SATURDAY EVENING,. • MAY 12, -1866.;':'

Great Indian Peninsula, New, 31,
Great Western d Canada, 149, 15.
Eleinds, guaranteed 5 per cent., 989.
Ditto, Delhi, 98.

MONEY MARKET.-(THIS DAY.)

PREFERENCE SHARE&
Great Western orig. 5 per cent. redeemable pref., 99.
Do. West Mid.—Oxford, let gun. stock, 118.
Lancashire and Yorkshire 6 per cent. stock, 129 i.
North Eastern—York, H. and S. Porch., 101.

THE EFFECT OF THE SUSPENSION OF
THE BANK ACT IN THE CITY.
Ows &Cum.
The announcement that the victory has been
pined, and that a suspension for the third
time of the miahievoua Act of 1844 has
been extorted from Ministers, though fully
anticipated yesterday, has been received
in the City this morning with the deepest feeling of
relief and satisfaction. Some time must necessarily
elapse before men's minds can be restored to calm-
-1163/15 after so fierce and sudden a crisis, but the
effect of the measure is already little less than magi-
cal. The outward manifestations of agitation have
disappeared ; Lombard-street and the adjacent
streets have almost resumed their ordinary appear-
ance ; the " run" upon certain of the banks has
subsided, and the demand at the Bank of England
has materially slackened, especially as compared
with the enormous pressure of yesterday.
Below we give the government letter relaxing the
Bank Act. It will be noticed that government will
wily allow the new notes to be issued at a rate of
discount of 10 per cent., and accordingly the Lank
of England have this day fixed the minimum at 10
per cent., thus equalising the charge for discount
sad for advances on government stock, as settled
yesterday :
To Tres GOVIIKNOE AND DKPIITY GIOVIRNOE OF Titi
LANK OF ENGLAND.
Gentlemen,—We have the honour to acknowledge the
receipt of your letter of this day to the Chancellor of the
Exchequer, in which you state the cone of action at the
Bank of England under the circumstances of sudden
anxiety which have arisen since the stoppage of Messrs.
Overend, Gurney and Co. (Limited) yesterday.
We learn with regret that the Bank reserve, which
sboil so recently as last night as a sum of about five mil-
lions and three-quarters, has been reduced in a single day,
by the liberal answer of the Bank to the demands of corn-
=nee during the hours of business, and by its just anxiety
to avert disaster, to little more than one-half that amount,
or a sum (actual for London and estimated for the
branches) not greatly exceeding three millions.
The accounts and representations which had reached her
Majesty's government during the day exhibit the state of
things in the City as one of extraordinary distress and
apprehension. Indeed, deputations composed of persons
of the greatest weight and influence, and represent:n.3
alike the private and joint-stock banks of London, have pre
seated themselves in Downing-street, and have urged
with unanimity and with earnestness the necessity of
some intervention on the part of the state to allay the
anxiety which prevails, and which appears to have
amounted through great part of the day to absolute panic.
There are some important points in which the present
crisis differs from those of 1847 and 18.57. Those periods
were periods of mercantile distress, but the vital con-
sideration of banking credit does not appear to have been
involved in them, as it is in the present crisis.
Again the course of affairs was comparatively slow and
measured, whereas the shock has in this instance anived
with an intense rapidity, and the opportunity for
deliberation is narrowed in proportion. Lastly, the
reserve of the Bank of England has suffered
a diminution without precedent, relatively to the time in
which it has been brought about, and, in view especially of
this circumstance, her Majesty's government cannot doubt
that it is their duty adopt without delay the measures which
seem to them best calculated to compose the public mind,
and to avert the calamities which may threaten trade
and industry. If, then, the directors of the hank
of England, proceeding upon the prudent rules of action
by which their administration is usually governed, shall
find that in order to meet the wants of legitimate com-
msree it is requisite to extend their discounts and
advances upon approved securities so as to m-
ower issues of notes beyond the limits fixed
by law, her Majesty's government recommend that
this necessity should be met immediately upon its occur-
rence, and in that event they will not fail to make appli-
cations to parliament for its sanction.
No such discount or advance, however, should be granted
at a rate of interest less than ten per ant. ; and her
Majesty's government reserve it to themselves to recom-
mend, if they should see fit, the imposition of a higher
rate.

After deduction by the Bank of whatever it may con
airier to be a fair charge for its risk, expense, and trouble,
the profits of these advances will accrue to the public.—
We have the honour to be, gentlemen, your obed;ent ser
vants,
Downing-street, May 11. W. E. GLADSTONE.

(Signed) RESSELL.

Subjoined is a copy of the letter addressed to
government by the Bank authorities prior to the
decision to relax the Act :

Bank d England, 11th May, 1R66.

. Sir,—We consider it to he our duty to lay before the
government the facts relating to the extraordinary de-
mands for assistance which have been made upon the
Bank of England to-day, in consequence of the failure of
Messrs. Overend, Gurney and Co.

We have advanced to the bankers, bill-brokers, and
merchants in London during the day upwards of four
millions sterling upon the security of government stock
and bills of exchange, an unprecedented sum to lend in one
day, and which, therefore, we suppose, would be sufficient
to meet all their requirements, although the proportion of
this sum which may have been sent to the country must
materially affect the question.

We commenced this morning with a reserve of
5,727,0001., which has been drawn upon so krgely that we
cannot calculate upon having so much as 3,000,0001. this
evening, making a fair allowance for what may be remain-
ing at the branches.
We have not refused any legitimate application for as-
Fist Alice, and unless the money taken from the Bank is
entirely withdrawn from circulation there is no reason to
suppose that this reserve is insufficient —We have the
honour to be, sir, your obedient servants,

(Signed) H.L. HOLLAND, Governor.
THos. NEWNAN HUNT, Deputy-Governor.
The Right Hon. the Chancellor of the Exchequer.
Notwithstanding the more hopeful aspect of
affairs, however, we regret to report that the Con-
solidated Discount Company (Limited) have been
compelled to stop payment, and that the Imperial
Mercantile Credit Association (Limited) will issue
a circular to a similar effect this afternoon.
The liabilities of the former company on deposits
do not exceed 350,0001. ; but there are also some
liabilities on bills, the amount of which has not yet
been ascertained. The liabilities of the Imperial
Mercantile Company, it is scarcely necessary to re-
m irk, represent several millions sterling.
The stock markets are sensibly firmer in cha-
racter, with a decided disposition on the part
of the public to invest, but there is
still a very unsettled feeling, owing partly
to an expectation that the settlement, which
will be completed on Tuesday, will be at-
t,:nded with a number of failures in the Stock
Exchange. One broker has already failed this
morning. Prices are consequently uncertain and
irregular, and as regards many stocks it
has not been possible either to procure
quotations from the dealers, or to effect transac-
tions. Consols, however, have risen f per cent.
for the account, and as much as 1 per cent. for
money, the present quotations being 864 to # ex
div. for the Gth of June, and 860 to
with div. for cash. In several of the home
railways there is an advance of to per cent.
As regards foreign stocks, there is no general
movement ; but the tendency, on the whole, is
better. There is a decided revival of demand for
bank shares, especially Agra and Masternian's, and
prices are recovering. National Discount shares
are in request, and have risen to 7 to 8 prem.
Financial shares remain dull. American 5-20 bonds
are steady.
In the foreign stock market the principal feature
is a fall of It per cent. in Italian Bonds. Brazilian

scrip has also declined 1 per cent., and Spanish
Passive 4. There is a demand, however,
for Greek, Spanish Certificates, and Mexicau,
which have risen to 4 per cent. Turkish bonds
of 1862 are 1 per cent. better. Some of the
present quotations are as follows : Turkish,
1862, 59 to 60 ; ditto 1865, 29 to 294 ;
Greek, to 114 ; Spanish Passive, 214 to 224 ;
ditto Certificates, 144 to 154 ; Italian, 1861, 39
to ; Brazilian scrip, 10 to 8 dis. ; and Mexican,
154 to 16. _

United States 5-20 Bonds are steady, at 64} to
65i, while Illinois Central Railway shares have
risen per cent., viz., to 75 to 76. Erie are
quoted 44 to 45, being i per cent. lower.
International Financial shares are now quoted
2 to 11 die. ; London Financial, 11i to Ica/ dd. ;
General Credit, 2} to 2 die. ; Imperial
Mercantile, 12 to 10 dia. ; Credit Fonder 4 to
3i did ; Overend, Gurney, and Company, 16
to 14 dis. ; and National Discount, 12 to 13 per
share.

Two o'CLocK.

Consols are now quoted 86} to , with div., for
money, and 85j to ex div., for the account,
showing arise of it per cent. in the former instance,
compared with the price current at 1 o'clock.
The failure is announced of Mr. Charles Bedell,
wine merchant, of Mark-lane, with liabilities
amounting to about 100,0001. His books are in
the hands of Messrs. Quilter, Ball, and Co., the
socountants.

At Paris this morning tho Three per Cent.
Rentes opened at 63fr. 95c., showing a rise of i per
cent..

The failure of two members of the Stock Ex.
change was announced yesterday, but their en•
gagements are understood to be very limited.
The branches of the English Joint Stock Bank are
at Aldershot, Bideford, Blackheath, Bournemouth,
Brighton, Bristol, Chatham, Chertsey, Christ-
church, Clapham, Croydon, Deal and Walmer,
Derby, Dorking, Eastbourne, Egham, Epsom, Farn-
ham, Godalming, Gravesend, Guildford, Hastings,
Margate, Northampton, Norwood, Nottingham,
Notting-hill, Poole, Ramsgate, Reigate, and
Rochester and Strood. The bank has also agencies
at Broadatairs, Chohham, St. Leonards, and Hales-
mere. The difficulties of the undertaking have I
been currently referred to in City circles during the
last two or three days, and on Wednesday the
shares, with 101. paid, were dealt in at 11. per share.
Yesterday they were quoted 13 to 10 discount.
A circular issued by the company this evening an-
nounces that, in compliance with the desire of se-
veral large shareholders, a meeting will be held on
Monday next to consider what steps shall be taken
to enable the bank to resume business.
The liabilities of the eminent railway con-
tractors, Messrs. Pete and Betts, are
about 4,000,0001., of which 3,800,0001. are
amply secured, with large margins, and the remain-
ing 200,0001. represent acceptances and accounts
for current supplies. All the works which the firm
contracted for abroad are in a very forward state,
and arrangements will be made at once for their
due completion. In England nearly all the con-
tracts have been undertaken jointly with other
powerful contractors, and these works will therefore
not be impeded. It is understood that the house
could have had plenty of assistance yesterday morn-
ing for their immediate necessities, but it was fore-
' seen that this would prove merely a half measure,
and it is fairly considered that no dishonour what-
ever can attach to the partners in stopping pay-
ment in a time of terrible pressure like the pre-
sent. The circular issued to the creditors is as
!ollows :

9, Great George•atreet, Westminater, May

We much regret to find ourselves under the painful neon-
sity of allowing our acceptances to be returned, owingwholly
to the disappointment of the arrangements we bad made
for their provision, which have been defeated by the un-
expected turn which has taker: place in the money market
within the last few days. We have considered it to be the
most expedient course in the interest of all parties that
for the present we should make no further payments, and
await the subsidence of the financial panic now prevailing ;
but we are enabled to state, that having submitted a state-
ment of our affairs to Mr. J. E. Coleman so lately as
the 23rd of last month, we then possessed a clear balance
of upward of 1,000,000/. estimating our various properties
at their then depreciated value. Our position now is but
slightly changed, and we have therefore only to solicit for-
bearauce on the part of those who hold our engagements,
and we trust in a very short tune to submit, through
Messrs. Coleman, Furquand, and Co., a satisfactory pro-
posal for the adjustment and discharge of all our liabilities.
We remain, your very obedient servants,
Pero AND Burrs.

The failure is also announced of Mr. W. Shrimp-
ton, railway contractor, of Westminster, with liabi-
lities amounting to upwards of 200,0001. The
liquidation is expected to be very unfavourable.
It is stated that a petition has been presented to
the Court of Chancery for the winding-up of
Overend, Gurney, and Co. (Limited), with a view
to the interests of all parties being protected.
Meanwhile the accountants employed are pre-
paring a balance-sheet as quickly as possible.
Telegrams from Norwich announce a meeting
called by the Mayor, at which the position of
Messrs. Gurneys, Birkbecks, Barclay, and Buxton
was discussed, and votes of confidence were passed
in the bank. It was stated that the Norwich Bank
has not for some time past had any direct connec-
tion with Overend, Gurney, and Co.
The directors of the International Financial
Society (Limited) have most judiciously given
notice " that all acceptances of this society will
be paid under discount, at the Bank of England
rate, if presented within one week from this date."
The sum of 137,0001. in gold was sent into the
Bank yesterday.
The foreign exchanges yesterday afternoon were
all higher ; but, owing to the distrust which con-
tinues to prevail, the rates wre merely nominal.
The Bombay mail steamer, which will leave
Southampton to-day, is not expected to take any
specie.

FRIDAY ETSUNG.

Consols were not saleable in any large amount
during the greater part of the day, but in the after-
noon much more steadiness prevailed. The nearest
quotations at the close were 851 to 1, with div.
for money, and 851 to # ex. div. for the account.
The official business report is as follows :—Three
per Cent. Consols, for money, 851, 5,4, 41, 40,
s}, 5, 4 ; ditto, for account, 841, 4,1, 51, 41, 5;
Three per Cents. Reduced, 831, 3,4, ; New Three
per Cents., 83, 4,2/, 34 ; India Five per Cent.
Stock, 1051, 5, 4 ; ditto Five per Cent. " en-
faced " rupee paper, 101 ; ditto Four per Cent.
Bonds, 15s. prem.
Indian government securities were steady. The
March Exchequer Bills were quoted 15s. to
ss. dis., and the June 10s. to ss. dis., being lower.
There was an entire absence of business in
foreign stocks this morning, but a demand subse-
quently sprang up, upon rumours that the Bank
Charter Act had been relaxed, and the receipt of
better prices from Paris. Italian Bonds of 1861
were in strong request, and rose 3,1 per cent.
Mexican of 1864 also improved* Turkishof 1865,
11 ; Spanish Three per Cents. and Passive, 1 ;
Egyptian of 1864 (1001.) and Turkish of 1858 4,
Mexican, # ; and Spanish CertificatA, 4. Russian
of 1822 and Venezuelan of 1864, however, were
heavy, and declined 24 and 14 respectively.
Bank shares were unsaleable in the morning, but
transactions were subsequently effected in some
cases. The reduction in prices compared with
yesterday was very important. Agra shares de-
clined 71. ; English Joint Stock, 41. 10s. ; London
and County, St 10s. ; European, 21. 10s. ; Imperial