The Sun.
London, England, 1839-06-26 00:00:00

POST.—The public securities assumed an appearance
of buoyancy in the early part of the. day, a change for
which various causes were assigned, but seine purchases of
Dutch Bonds have been lately made for transmission to
Holland, and a!though the amount is unimportant, it wr:,
nevertheless, conceived :hat the bills to be drawn against
them might prove sufficient to produce at least a partial
rise in the exchanges. Consols were done in the course of
the morning at 931 for the opening, but there was no
great faith in the stability of the Market, and the hope
entertained in the first instance of a reduction in the value
of Foreign paper having rather diminished, they eventually
receded to 93 to in exchequer Bills were done at 18.. to
20s. prem. The advance in the rate of these Securities
seems to have arisen from an expectation which la begin-
ning to be entertained at the Stock Exchange that the
Chancellor of the Exchequer will raise the interest from
to 21. per diem, so as to prevent them from going to
a discount, which, at the preterit rate, would certainly be
the cats in the event of any further action on the circula-
tion, on the pArt of the Bank of England. Bank Stock
was done at 1881 to 189.
The financial convulsions with which the country has
been visited since the estabr sliment of Joint Stock Banks
of issue in different parts of the kingdom, have been so
frcqnent. and at the same time so much more difficult to
deal with than was previously the cast*, that there are few
intelig,ent men of business, we should conctive, who are
not by this time satisfied beyond all doubt of the mischievous
eperation of the system, and who would not he glad,
however hissed they may have been in its favour in the first
instance, to see it put an end to, or at all evens so
fir modified as to render its influence less natianal than
it is at present. When the system first engaged the
attention of the Legislature, the example of the Scotch
BaeleS was referred to as a proof of its excellence
as well as a gusrantce for its success, and it was,
doubtless, expected by many that in England it would
here been pursued with equally prudent management.
It was, doubtless, expected too, that the conductors of
an English Joint Stock Bank would have felt the great
responsibility attaching to their functiona, an:l that thn'y
would, in imitation pf the Directors of the Joint Stock
Banks of Glasgow and Edinburgh, have confined their
transactions to a liml.somewhat proportioned to the paid up
capital of the concern placed under their charge; and, in
all cases, have taken care to exact a like security far the re-
imbursement of their advances, whether received in tile
shape of loans or of discounts, but the result shows too
Plainly how completely these expectations have been dis.
ppointed. The promoters of the system in this country
have the deep mortification to perceive, from what has
transpired in connection with those of the number
which have already gene to pieces, that the Joint.
Stock Banks established in England have been carried
on with a degree of recklessness and improvidence that
are quite incompreheifible. With but a comparativi ly
mill amount of capital paid up, the managers have
launched forth into transactions of immense magnitude.
B,curity for the sums advanced has never been so much as
thought of, and in this it is that the leasing principle ohs
served in the management of the Scotch Banks has been so
fatally departed from. The only anxiety has been to :secure
the accounts of great inatinfacturers and monopolists, the
failure of one or two of whom has proved auflinient, when
it has occurred, to swamp the Bank in an instant, public
confidence bring thereby divurbel, and the shareholder
himself compromised to the extent of his snbscription. We
say nothing of the risks run end losses possibly sustained "
by depositors. On a subsequent investigation into the
affairs of these fallen banks it has, we believe, been inva-
riably., discovered that the Directors have dipped largely
into thek coffers. They have wanted accommodation to
enable them to hold corn or cotton to the manifest injury
of the poor, and, in many instances, of themselves, which
accommodation has been affirded in the most unsparing
manner; and it must be evident to the least observant of
persons, that a .system which sanctions this cannot be a
sound and enlightened system of banking.
Organized as the joint stork hanks of issue are, it is,
as we have shown, too =eh to hope that in a community
so abounding in all the elements of speculation as our
own, anything like discreet management will be persevered
in during a season of .prosperity ; and as a contrary course
of procedure is found to have the r flex t of bringing on a
crisis, and of compelling the Bank of .Enalend to take
csucch
measures of precaution as are detrimental to our e
we should say that the time cannot be very farl-cdndnait:tN,
when they will, if, indeed they are still t
be placed on quite a different footing from
With these _
DIED.
they have assumed under the existingni:libare.
institutions, the warnings of the
aistate of trade a
the supply of the At behead, Mirfield, John Langton, son of Mr. John Han-
de which has, accord.
and to lay a statement
bury, aged 22.
bank, which has to find treasure
three kingdoms and the colornesa,,
are, have been exempt: o,n the 21st inst., at Ardwick, near Manehester, Mary,
ingly, to regulate the circulractgioule,
the foreign exchanges may 12esLanlast2uiviving late Thomas
son, Esq.,.of Tildesley, Lancashire, aged 82.
every month --a dutY from I On the 2.lth inst., at Clapham, Joseph Petty Toulmin, Esq•
fresh issuers, a !
John-
its
Lontion Printed a_nd Pnblished by MUnDo yotit-:, of
seemto%'fh ry,:cii)r's;f:orsr,pe.
coatnis7! lie::°aarsisdtl;leys7‘znai
for
total dm-annement of the whole of cur commercial faric
being . a Matter, of very minor I No. 1-P m , Strt,.%t The San. ()rice, No. 112, Strapd; it
. consideration where an the county of illiddiesex.—Wednesde.e, June 26, 16.19.