Northern Times.
Liverpool, Merseyside, England, 1857-11-02 00:00:00

PASSENGERS FROM

The Peninsular and Oriental Company's steam-ship
Colomb), Captain F eld, with the bom3ward India and
China ma Is, left Alexandria on the 21st inst , am , and
Malta on the 25th, And may be looked for at Southampton
on the 3rd or 41 last. Her passenger list is as
follows :

From Hong Kong. -Lieut. his Royal Highness the
Prince Victor; Hohenle?e, Lieut. CuHinson, R.N., Mr.
-Self, • Ensign Telford, 59th Regiment, Mr. Wocdgates,
Commander Ch2mbels, R.IVI Lieut. W ams, it.N.,
Lieut. Autey, R N., and Mr. Gerrard,
From Singapore —Captain Noriia._ _

From Pat—azig —.Mrs. 'l3-addell and three children.
From Calcutta.—Mrs. Elliott, two children, and Euro-
pean servant, Lieutenant Pixley, Mrs. Sampson, Mrs.
Swiney and three children. Mrs. Norris, Mr. Hearlyrote.
Mrs. O'Donnell, Captain Dunbar's chit 4, Miss Pit-ar, Capt.
Burchcliffe, Mrs. Bumbery, Ur. Ne wall, Mr. Thorns, Mr.
Maxton, Captain Murray, Mr M‘Manus, Miss Webb, Mr.
G. C Spakes (chief officer, Peninsular and Oriental Com-
pany's steamer Nubia), Messrs G. Caandler, J. Leer and
J. Lee (stewards of ihe Nubia).
From Madras—Mrs. Tunis, two children and European
servant, Mr G L Morris, Lieutenant Taylor, Miss Wood-
Major-General Stratton, Miss Parke, Mrs Parker
and two children. Mr Parker and servant, Mr. Mackenzie,
and Mr. Seiveir.
From Ceylon —Mr. Affick, Mr Brown and servant,
Lieu+enant Hasted, Rev. Mr. and Mrs. Tarleton, H. J.
Yeom at (apprentice. Nubia)
From B :mhay—Mr. and Mrs. Clough and servant and
Did Willltle6ll, ILIAD Jilillinusuu, M.. V ---
husbani, Mr. Baker, Miss Graham, Lieutenant Taylor,
Mrs. Galway, child and servant, Mrs. Traver' Mrs Muter
and child, Mrs. Stenh Alas, and two children, Mrs. Cloete
and servant, Mrs. Wallis. three children, and servant,
Mrs. Adamson and child, Mrs. Seaward, Mr. and Mrs.
Owens and three children, Captain Roskell, and the
follow"ng persons engaged in, the Peninsular and Oriental
Company's service : —Messrs. V. Dod, J. Lewis, H.
Tumnesa' J. Tudor, H. Mansell, M Carthey, and Chapman.
Total, 115.

THE STOPPAGE OF. THE BOROUGH BANK,

LIVERPOOL.

Amongst the financial difficulties of the week, we have
to record the stoppage of the Liverpool Borough Bank.
It was rumoured several days since that this establish-
ment was in a diffi cult position, and that application had
been made to the Bank ot England for assistance ; and as
the court of directors at the hank were specially con-
vened to consider the case on Monday afternoon, and a
favourable decision was come to, a notification was
issued that business would be resumed on Friday. There
appears, however, to-have been difficulties in the way of
an arrangement, which prevented this obj ct from being
accomplished that were not in the first instance antici-
pated. The negociatt_ n, it is said, has failed, in conse-
quence of the other banks that have been called upon to
give their assistance, not agreeing with the terms pro-•
posed by the bank. The total amount of liabilities is not
yet made public, but they are said to be very heavy in
the shape of endorsements.
• Although we are not yet in full possession of all the
facts connected with this failure, there is enough to chew
the foundation upon which our banking system le reared.
This Bank was established in July, 1936, the year before
the great American panic of 1837. Its paid-up capital by
the last report was £1,000,000, and the reserve fund
X 109,214 16i 11.1. The losses in this account are stated
at 1:45,825 2, Id, which are said to have been almost all
occasioned by " the frauds of a customer?' The net
profits on this occasion were given at, £ii9/118 12s. Bd.
and the dividend was reduced from 7 to 3•per cent. per
annum. These are the facts of the case as tegarde.the
Bank's position at that time.
We now come to the system which has reduced' the
Borough Bank to its present condition. We are told that
the Bank of England received its. application for
assistance favourably ; we have, therefore, a right to
assume thditt the Bank was in a solvent state;, yet in the
face of thie, one of the conditions was, that it must
wind-up its business, without which the required
assistance could not be given. Is..not this, a practical
il:ustration of what we said on a former occasion of their
being no supply to be raised from. the country " pumps"'
in, a time of scarcity, and that on• such occasions no
remedy can be obtained without drawing the required
supply from the " pump" opposite the Royal Exchange.
And how do the managers of this Metropolitan " pump"
make their terms with the Liverpool Company ? Why,
something in the following language :
" Gentlemen, we have considered your case, and we
have come to the Conclusion that it. is a legitimate one for
our sympathy. We see you have been exhausting your
supplies by too much liberality to yotie customers : but a
little rest may do you good. Tale is, however, only one.
condition upon which we can consent to supply your
wants : we cannot permit you to repair your disordered
pump' with the supplies received from our owe for we
have s many applicant a that we are fearful our stock will
be exhausted. It you will, then, only consent to remove
your pump' altogether, we are ready to supply your
customers whenever you may require our assistance."
Convert this langnage into a qiestion of currency, and
the simile is complete.
The public have been recently. told. on the authority of
the Times, that "there are no terrors in 8 per cent, or any
other rate of discount."' According to this theory the
Bank of England needs only go on with their advancing
rates until the whole of the profits of trade are absorbed
in usury, -for it cannot be correctly known by any other
name. But do the merchants and the bankers of Liver-
pool commit themselves to such a creed as this ? We
can only say if they do, they deserve to fall under the
system that has crushed•one of their banks, after having
transacted business for 21 years in their borough.
'ln no town in England has this S per cent discount
fallen with heavier weight. Liverpool has no monetary
aid in times of pressure but through the Bank of
England. as it has no issuing banks, nor any power
of extending credit to merchante under a depreciation
in the value of their produce. Will the Liverpool
merchants and bankers come for
and avow that
8 per cm'. discount lies not depreciated their merchan-
dise ? If a steterneut of this kind could be verified, then
we should be read' to consider the failure of any of their
Banks a discreditable result. But we know to the con-
trary. The wealth of Liverpool consists principally in
the mercbar,dise of its vast storehouses and shipping;
the advanae in the rate of discount to 8 per cent. is the
acknowl',dged machinery by which every kind of mer-
obaneLse and manufaotures becomes depreciated : and it

' is upon this basis that our whole system of banking IS
fon-rded. The merchants of such towns as Liverpool,
have principally themselves to blame that they thus
submit to be crushed, or brought to the verge of bank-
ruptcy, every few years, as if it were a law of naturet
that those who have nothing to do with the production
of wealth should have absolute power conferred upon
them to throw the whole commercial and trading world
into confusion, whenever it may be turned to profitable
account.
Live.poil, with a number of other towns, has formally
adrnitte 1 in its C lamber of Commerce the unsoundness
and the insecurity of our currency laws ; but what have
they dote in their efforts to introduce an improvement r
Practically nothing. They have continued in apathy,
:and will probably do so until some commercial tornado
'ilia suddenly awaken them to their real position. Never
was the moment so opportune for the mercantile com-
munity to unite, and demand to be heat d on this point by
the Government. We have the example of America
before our eyes ofthe danger of placing the wea:tri of an
empire at the mercy of a speculating body of men ; and
though we hare not yet felt the crash so he kvily as it
has been experienced on tha other side of the Atlantic, it
is high' time we should begin to think about setting our
own house in order before it be too late.--Biznker's
Circular.