Northern Times.
Liverpool, Merseyside, England, 1857-10-30 00:00:00

MONETARY AND COMMERCIAL

LIVERPOOL, Thursday Evening.
There was a much better feeling on 'Change to-
diy. Much of the anxiety felt yesterday was
allayed by the statement which appear?d in our
paper of this morning, respecting the sAyenry and
high position of the Liverpool Banks, and the run
for specie very much abated although 'it is
slightly above the average; but we hope to be able,
in a day or two, to announce the complete restora-
tion of corfidence.

The affairs of the B orough Bank are yet in an
unsettled position. To- lay its doors wre opened
ror a short time, and all the deposits male for a
few days previous to the suspension were refunded.
This, of itself, is a favourable feature, add the an-
nouncement that the Bank of England have come
to the conclusion to discount all Bills of a sound
character, endorsed by the Borough Bank, has
given satisfaction, and a more cheerful tone is
apparent in comm rcial circles. Respecting the
negotiations with the Bank of England, we pub-
lished the following in our second edition of to day.
It is from the 7'intes City Article :
The failure of the negotiations with the Bank of England
for the support of the Liverpool Borough Bank has been
caused, not by any withdrawal on the part of the Bank et
England, but from the refusal of the other Liverpool
establishments to give the guarantees originally agreed,
the plea of these parties being that the temporary
stoppage of the bank has removed the chief inducement
for them to come forward. They are willing to give their
notes as a collateeal security to meet any deficit after the
realization of the bank assets, but not to come under any
more immediate and direct liabilities. The Bank of Eng-
land, however, could nct depart from the condition first
stipulated, which alone were legitimate. The negotiations,
therefore, terminated, and from the notice issued rn Wed-
nesdey, it is to be inferred they are not likely to be
renewed The disaster will prove most serious, but it will
fall at the moment, chiefly on the depositors, and ulti-
mately on the stockholders, since there can be little hope
that, under a forced l'quidation, any groat portion of the
capital of one million pounds can be save& The loss to
the commercial coiemueity will, it is believed, be much
mitigated by a course which the Bank of England will take
for that purpose. Ordinarily, the bank refuse to discount
any paper bearicg the endorsement of a suspended estab-
lishment, but it is understood that, in the prevent case,
this rule will be waived, and that no bills of a sound
character endorsed by the Liverpool Borough Bank will
be rejected on that occount. A great mass of paper will
thus be prevented from becoming practically inconvertible.
The total committmeets c•f the Liverpool Borough Bank in
the shape of endorsements, &c , are rumoured to amount to
more then three million pouede, but a large portion is of
an indirect character, and will be duly provided for by
responsible parties. The depasits,which recently amounted
to £1,500,000 have latterly been reduced, it is said, to
about £1,000,000. many of these having been lodged by
persons for the sake of permanently securing a high rate
of interest The inconvenience of their being temporarily
unavailable will be less felt than if they had belonged to
traders in active business. It is affirmed that the investi-
gation eshieh must now take place into the affairs of the
Liverpool Borough Bank will develops a most unsatisfac-
tory system of management, and show that advances have
been made to individuals of amounts which could not fail
in any period of pressure to lead to fatal consequences.
Tie lest report of the bent, a copy of which is annexed,
announced a reduction of the late of dividend flow 7 per
cf nt. to 5, in consequerce of the winding up of the affairs
of 1854 (renchred mitt .rable by :he failure of Mr. Oliver
and others), but added that the business of the bank was
unimnuiree, and that certain changes about to be made in
its policy and regulations would prevent sixi'ar losses for
the future :

REPORT OF THE DIRECTORS TO THE PROPRIETORS.
Aceord'nz, to the last report, the paid-lp elpitst of the
hulk was £900,000, and the reee.ve fund was £101,775
10s. Ild.

Sinca that date two calls of £1 ror share have been
paid upon the new shares, making the capital £1,000,000.
s. d.

The n t profits of the past year. after pay-
mFnt of all expe-sei -of m tnagement,
and after deducting .£45 825 2.. id. fur
losses by bid debts incurred during the
same period, amo•tnt to
Appropriated a 4 follows:-
3-3 nor cent. divided upon
£950,000 £33.250 0 0
23 per cent. dividend upon
£lOO,OOO . 25,000 0 0
Plop rty Tax paid by the
13..nk

• • .. .. G 3,318 12 8