The Express.
London, England, 1866-05-11 00:00:00

MONEY M

THE PANIC AND RUN UPON THE
BANKS.

RISE IN THE BANK RATE OF DLSOOUNT.

0111 O'CLOOt.

The City to-day present+ a scene of extraordi-
nary excitement, and great crowds are congre-
gated round the doors of some of the large
banking and financial establishments. Many
persons are withdrawing their deposit., but, thus
fa, there is no severe run, and it is
hoped that this will be averted by timely
action on the part of the government in relaxing
the Bank Charter Aet. It is generally rumoured that
a deputation of bankers have gone to the West-end,
with a view to see Mr. Gladstone on the subject,
but this statement has not met with any official
confirmation. The failure was announced the first
thing this morning of the English Joint Stock
Bank (Limited), an undertaking established in
1864, under the title of the South Eastern Banking
Company, with a capital of 1,000,0001., to purchase
the business of the West Surrey Bank, conducted
by Megan. Mangles. The company have since
bought the business of Messrs. Olding, Osborne,
and Co., of London ; also that of the Ramsgate
Bank (Burgess and Canham), the Bideford Bank
(Harding and Co.), and the Nottinghamshire Bank
(Hart, Fellows, and Co.). At the meeting held
in February last the amount due to custo-
mers on current and deposit accounts was
stated at 901,469/. ; the gross profits for the half
year at 46,4371. ; and a dividend was declared at
the rate of 6 per cent. per annum.
It is an extraordinary feature that dealings in all
Stock Exchange securities are completely sus-
pended, except in Consols, and the transactions in
these are of the most limited character, the
dealers not being prepared to purchase to any
extent until they learn from the directors of the
Bank of England that they will continue to make
advances upon government stocks. The arrange-
ment of the half-monthly account in shares and
foreign stocks has commenced amid extreme confu-
sion ; and in most cases the " jobbers" refuse to carry
over stock, compelling the operators for a rise to
close their accounts. Consols are nominally quoted
85 to }, with div.,for money, and 84 to ex div. ,for
the account. Practically, however, convertibility
even of government stocks is at an end for the
time.

HALF-PAST ONE O'CLOCK.

The directors of the Bank of England have raised
the rate of discount from 8 to 9 per cent., and it is
currently reported that they have decided to make
advances upon stock at the rate of 10 per cent. per
annum.

Two o'CLocii.
A rumour has gained circulation that the '
Bank of England have just been authorised
by Government to issue 5,000,0001. of notes
beyond the legal amount, but the rumour remains
unconfirmed, and is not generally credited,
the opinion being that a !solution of the crisis can
only be attained by a complete abrogation, for the
time, of the Act of 1844, without any stipulation
whatever as regards limitation of the notes to be
sd issued in excess of the law.
As we write, the excitement throughout the City
is becoming constantly more intense. The streets in
which the great banking houses are situated are
full of excited crowds, and the run upon many of the
banks is increasing. Apart from the expected
relaxation of the Act, credit and confidence are com-
pletely gone, and public securities of all kinds are
totally unsaleable. At the latest moment there is
a rumour that the Chancellor of the Exchequer
has come down in haste to the Bank of England.

FOUR O'CLOCK.
The excitement in the City continues unabated,
but no fresh failures have been an-
nounced, and there is more disposition to
deal in the Stock Bxchange. Consuls are
id now quoted 85 to 1, with div., for money, and
83i to 84in, ex div., for the account. The decline
in sonic of the bank shares has been very
severe :—lmperial are officially marked 231 ;
London and County, 641 ; London and Westmin-
ster, 891 ; Oriental, 38 ; Agra, 231 ; Alliance, 13 ;
Bank of London, 12 ; and City, 141.
Amongst the financial shares, Credit Foncier and
Mobilier and General Credit have been dealt in at
2 ; Imperial at 9 dis. ; International at 21 ; and
Id London Financial at 9.
its National Discount shares were marked this
ti;
morning as low as 71, or 21 prem., but have since
risen to 12. Overend, Gurney, and Co. (Limited),
15 to 11 dia.
Italian stock has been dealt in at 37/ f
Mexican, 15 ; I'aasive, 20} ; Certificates, 14 ;
Turkish, 1865, 28/ ; Great Eastern Railway, 37/ ;
Great Western, Lancashire and Yorkshire, 1181 ;
London and North Western; 116/ ; Metropolitan,
121 ; Midland, 1191.
About 137,0001. in gold has been sent into the
Bank. The pressure for money at that establish-
ment has been enormous.
Subjoined is a copy of the circular intimating
the suspension of payment by Overend, Gurney,
and Co. (Limited), and which has been sent out
by to-day's post. Crowds of mercantile men as-
sembled later yesterday afternoon in Lombard-
street and Birchin-lane, and the scene altogether
was perhaps the most exciting and painful ever
is
witnessed in the City :
Sir,—We regret to announce that a severe run on our
8
deposits and reaources has compelled us to suspend pay-
ment, this course being considered, under advice, the best
calculated to protect the interests of all parties. Mr. Tur-
<pawl, of the firm of Messrs. Coleman, Turquand, Young,
and Co., and Mr. Harding, of the firm of Messrs. Harding,
Pullein, Whinney, and Gibbons, who are now occupied in
auditing the accounts, will prepare a statement of the
affairs of the company to be laid before the shareholders at
a meeting which will b? fixed for as early a day as poseible.
1 remain, your obedient servant,
London, May 10. WILLIAM Bois, Seeretery.
About 57,000/. in gold was sent into the Bank
yesterday.
The Chariot of Fame has arrived from Mel-
bourne with 34,5001. in gold, and the Star of
i.„_"l4 Tasmania from New Zealand, with 29,0001.
l'" Owing to the probability of war, transactions
have occurred at Lloyd's in war risks, as regards
Italian, Austrian, and Prussian vessels. The
transactions so far, however, have not been nume-
rous.
A circular from Mr. Oswald Howell, of the firm
of Walker, Reddall, Nix, and Howell, accountants,
d 1 intimates that the directors of the Unity Joint
Stock Mutual Banking Association (in liquidation)
are enabled to make a further return to the share-
holders at the rate of 11. per share, receivable
after the 11th inst. This makes 41. returned out
of 601., not reckoning, however, the 101. per share
which was transferred to the London and Middle-
sex Bank in respect of calls in that company.
The West London Wharves and Warehouses
Company have made a call of 21. 10s. per share,
payable by the sth June.
The second series of colonial wool sales com-
menced yesterday. The catalogues comprised 4,378
bales, viz.:—Port Phillip, 2,639 bales ; Cape, 723 ;
Sydney, 680 ; Adelaide, 194; Tasmania, 106; and
Nfaeirw,
and Messrs.
ra36..R. ThDuettaatateaandand
sceanofrabpaurayersthail
the prices paid show the following reduction, as
compared with the March sales, viz. :--fiydney
and Port Phillip, Id. to lid. ; ditto, greasy, Id. ;
Cape, ld. to le. The quantity arrived for the

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