The Sun.
London, England, 1837-06-16 00:00:00

MONEY MARKET.

(From the Morning Chronicle.)
At the usual weekly meeting of the Directors of the
Bank of England, which was held to-day (Thursday), a
final decision was made as regards a large firm at Liver-
pool connected with the American trade, which has re-
cently been compelled to seek succour from the Bank to
carry it through its difficulties. We have the utmost plea-
sure in saying that the resolution come to, almost una-
nimously, was in favour of the applicants, and the house its
question is guaranteed whatever sums it may require be-
tween this and the 31st of December. Security for the
greater part, if not for the whole, has, however, been given,
and therefore the Bank runs but little risk in adopting this
plan, which, we feel convinced, will give general satisfae,-
tion throughout the country ; for had this firm been com-
pelled to yield to the severity of the times, the consequences
must have been fatal to many minor establishments in the
same place, as well as several manufacturers in the neigh-
bourhood ; thereby throwing throusands out of employ, and
having, perhaps, the tranquillity of the country disturbed
by the restlessness of so many idle persons. The amount
required immediately by this establishment is, we b&ieve,

400,000/., and about 200,000/. in the beginning of July.
The sum already advanced, as we have before stated, is
650,0001.

In the opinions we expressed regarding the consequences

. -
which would most probably result to England from the re-
cent suspension of specie payments on the part of the
.banks of the United States, we believe we stand a:most
alone, as far as the City correspondents of the London
press are concerned, and some remarks have been made
upon us in consequence. We have, however, only looked
upon the American merchants as honourable, upright
men, anxious to uphold their credit, and ready to strain
every nerve to relieve their correspondents in this coun-
try as much as possible. Time alone can decide whether
we or our Contemporaries are right. But we feel con-
vinced that our statement represents the feeling of eight-
tenths of the mercantile community, not only in the me-
tropolis, but in all the large commercial towns where we
have yet been aLle to know the effect produced by the in-
telligenc.! from New York. The Americans, when com-
paratively poor, experienced panics, and suffered severe re-
verses, yet,, nationally speaking, they have always complied
with their engagements. Now, however, they are in a dif-
ferent position. They have realized wealth, and obtained
great power, and we think it will be found that they
are equally ready to make every sacrifice to liqui-
date their debts. What, in fact, could be stronger'
proof of their integrity than the ready manner in which
they paid from two to three per cent. per month for
money, that they might transmit bills to their correspondents
here when the first symptoms of the pressure were felt ?
We therefore repeat our conviction that the present state
of things in the United States will ultimately be of much
greater benefit to the creditors here than the uncertain po-
sition in which the States previously were. The circula-
tion of small paper must relieve all their anxiety for urgent
purposes, and, if adopted generally throughout the union,
which there is every reason to suppose will be the case,
there will be no necessity for hoarding the precious metals ;
and gold and silver, as we stated before, if necessary, will
find their way to this country. The banks probably will per-
severe in their determination to suspend cash payments, and
yet uselessly strive to keep the specie within their grasp ; but
the Government must pay the expenses of its different de-
partments in the legal coin of the country, so that whatever
obstacles may be thrown in the way by other parties, this
circumstance alone would, in time, occasion a large dis-
tribution of gold and silver. Besides this, the central
Government, next month we believe, will have to make
over a considerable sum to the different States, as their
portion of the surplus revenue, which will of course be
paid in bullion, and thereby offer another and speedy op-
portunity to those indebted to this country to become
possessed of it.

- The majority of the Directors of the Bank of Eng-
land, we believe, regard the intelligence from the United
States in the same light as ourselves, and in consequence
are considering, it is stated, the propriety of bringing the
case of the three large American firms which have re-
cently suspended operations once more before the Board,
with a view of procuring that assistance which has
hitherto been withheld from them. Such a step
would be popular, and certainly it would be a
great stimulus to the Americans to find their corres-
pondents had resumed business. No doubt the arrival of
Mr. Melville Wilson and Mr. Searle has put both the
firms. with which they are connected in the possession of
more detailed information, and therefore the Bank could at
least, do itself no harm by once more investigating their
position, and seeing if there were sufficient grounds to
rescind their resolution. The effect of these houses re-
suming payment, added to the certainty that all appre-
hension of the failure of the large firm in Liverpool was
removed, would give new life to every branch of com-
merce, restore confidence, and relieve many establishments
from great embarrassment.

In the midst of this more cheerful picture of affairs, we
regret to have it in our power to announce the failure of
Messrs. Bolton, Ogden, and Co., of Liverpool, a firm con-
nected with the American trade, and whose suspension of
payment, we believe, has been chiefly occasioned by the fall
of those in London. We have not heard what its liabilities
are. but we believe they carried on an extensive business.
Many persons are under the impression that the exporta-
tion of gold from St. Petersburg, which we sta' ed yester-
day, was for the purpose of sending it through this country
to Don Carlos. This is wholly without foundation, and we
believe it will be found that the gold in question has come
to London, on account of the dividends due on Russian
Stock in September next. The demand from Holland for
gold in bars, which we alluded to a few days since, was,
however, for traasmision to the Pretender to the Spanish
Throne.