The British Press; or, Morning Literary Advertiser.
London, England, 1826-01-03 00:00:00

THE BRITISH MESS.

reason to believe that this statement is not exaggerated.'
They were personally acquainted, and haying passed firmly
together through scene, of great daager and anxiety, had
contracted more regard rot' each other than it usually hap-
pens with individuals of their elevated rank.
"Illaxouson. Dec. !3.

Letters from beipaie of the 16. h say, that the Conversations-
Won baring stated that according to the Prussian Almanack for
1826, not the Grand Duke Constantire, but the Grand Duke Mi-
chael, was to be the successor of the Emperor Alexander, the Prus-
sian Government has complained on this account to that of Saxony,
and that the latter has ordered a judicial inquiry to be made rela-
tive to this statement.
A Commission, of which Prince Rankin is President. has been
appointed at Sc. Petersburgh to draw up regulations for a general
mourning.
The Russian Ambassador at Stockholm received the news of the
death of the Emperor of Russia on the 16th. The King and the
Crown Prince of Sweden were deeply affected by it. " The friend-
ship (say the accounts) which united the King with the late Empe-
ror, and the important consequences which have flowed from their
union, particularly contributed to enhance his Alsjesty's grief."
Tie LEAGUE, DEC. 28.

The day before yesterday, at two in the afternoon, his Majesty
gave a private audience to th: Chevalier d'Abrue e !Arne, Envoy
Extraordinary and Minister Plenipotentiary to his Most Faithful
Majesty, who, on this ocusinn expressing the friendly sentiments
of his August Sovereign towards his Majesty, presented the gland
Cross, uniting the orders of Christ of St. Bento d'Avex, and or
St. Jsgo da Espatts, together with al.:Cc-on vhf subject, from Ills
Most Faithful Majesty.

A MST IRDA M, DEC.3e.

The Amsterdam Courant conta'ns an official note :n French and
Dutch from 31. de Brunet. Consul-General of Russia, in which
he acquaints all Russian subjects. without distinction,‘ melding
permanently or for a time only in this city, that conformably to
superior orders which he bas received, he shall proceed to receive
at his office the oath of allegiance, which every faithful Russian
subject is bound to take to his Majesty the Emperor Constantine
Pawlowitsch.—Eachange on Lnndon 30th Dec. 40f. 2c. 29f. 10c.

The Amsterdam Courant of Saturday announces that macs
was received at Nuremberg on the 2itli from Vienna, that
Palermo, the capital of Sicily, with a population of 180,000
souls, had been dastroved by an earthquake. No particu-
lars of this frightful calamity are stated. As ne confirma-
tion of this melancholy intelligence had reached Amster-
dam by the shorter road through Switzerland, we may be
permitted to hope that the report is without foundation.

By the Asia, from Bengal, we have received Calcutta
Papers to the 9th of August. We have given extracts in
another column. They announce the death of Captain
BANNER), AN, of the Commissariat Department at Arracan,
and mention, as a rumour, that Sir AtixaNnen WALKER
was to succeed Sir CH/ALES COLVILLE as Commander-in-
Chief of Bombay.
We have no further intelligence as to the Burmese war.
The armies were in winter quarters. Some private letters
represent the sickness among the troops as very destruc-
tive. The papers state that several transports had arrived
at Calcutta with invalids. The accounts from Arracan
reach down to the 11th of July. The number of soldiers
retorted in the hospitals was increasing to an alarming

extent.
At Calcutta money was still scarce. The Bengal Bank
discounted at eight per cent. The exchange was 21. to
2s. 01d. The accounts respectiwt the indigo were good,
except in the upper provinces. The estimate in the latter
is one half cf the supp'.y of last season.

" The statements," says a Morning Paper of yesterday,
" put forth by some of the banking establishments which
have stopped payment durin; the late panic, both in Lon-
don and the country, arc, as well as the silence of others,
anything but satisfactory, and calculated, we think, to
shake the public confidence in the present system af banking
al!ogelhe7." And with respect to country bankers, Ole
same Journal lays down the law of its opinion thus:—
" The country banker who inundates a whole district with
his notes, and who, when pressed, declares his inability to
pay them, or to return the deposits of his customers, is
placed in a situation, we conceive, not different, in point of
moral honesty, from his own clerk, who may have on-
hezzl,d—and suffered perhaps severely for having gr-
belcz:vd—part or I:,ose very assets." A writer must have
very e:.traordinary conceptions of morality as well as of
banking establishments, who can send forth such opinions
as these. They are too palpably foolish to deserve a seri-
ous refutation. But cs the subject of country banks is of
such perpetual recurrence in the Daily Press, we will just

. .
soy a word pr two upon them.
Let us suppose a banking firm consisting of five part-
ners, tacit partner bringing in thirty thousand pounds ;
here is a capital of one hundred and fifty thousand pounds.
Snppose them, upon the strength of this capital, to issue
their notes to the extent of one hundred thousand pounds;
this every one will acknowledge they are perfectly justified
in doing. After a titre, they find that upon an average
50.000/. of bank notes and cash is amply sufficient for
all the current demands upon the bank ; that is, it is amply
sufficient to pay on demand all their notes as they come in
for payment. Suppose the credit cash in their hands be-
longing to their customers to amount to one hundred and
fifty thousands, and that, of that sum, they have employed
on loans, on adequate security, anti in discounting bills, a
sum to the amount, in the whole, of one hundred thousand

pounds. Such a banking-house, thus carrying on its
business, is manifestly competent to fulfil all its en-
gagements. It has the means of discharging the amount of
all the notes in full ; it is therefore completely solvent ; it
keeps, moreover, always a supply stlequate to the current
cash demands upon it, namely, f fty thorsand pounds, or
one-third of their capital. Out of the remaining tiro-third.,
it is that, after defraying the incidental charges of their
(stabil:hit:cot, they derive their yearly profit. But a sud-
den panic, such as has been lately witnessed in the com-
mercial world, if it nceasiona a run on this bank—if all
who keep cash in it rush, each anxious to be first to dray.:
out his account, and all the holders of its notes, alarmed
lest it should stop, hasten to get them exchanged for cash
or Bank paper, it is obvious that, notwithstanding the stabi-
lity of the Banker; funds, which arc equal to all the demands
that can be made upon them, they mist suspend their pay-
ments. For although they are able to discharge to the last
shilling every claim upon them, they are not able to
meet those claims all at once, when taken thus unprepared !
Neither is it any imputation upon their integrity that they
were .not prepared to take up the whole of their issues,
thus unexpectedly coming in upon them. It is enough—
and it is all that in equity could be required from them—
that they were prepares• to satisfy all the claims that they
could seasonably expect to be wade upon them.
We have heard it laid down as a proposition which every
one must assent to, that no banker ought to. issue any
amount of notes payable mg demand, which he is not pre-
pared on demand to pay. This, acuntlp very well ;. but
there is no one at all acquainted with banking concerns, or
indeed with commercial concerns of any kind, but must
well know that instead of being a truism—as at first view i
appears—it is a sheer absurdity. A banker:snote must be
made payable on demand; it wculd not be transferable fat