The Sun.
London, England, 1838-12-21 00:00:00

MONEY AND CITY NEWS.

(FROM Tall MOININ• TAPERS OF THIS DAY.)
TIMES.—Some excitement was caused in the Share-
market, and a rather considerable decline in the prices of
London and Birmingham railways, by the forced sale of
130 shares on account of holders in the cotton manufac-
turing districts reported to have fallen into embarrassed cir-
cumstances. From 76 to 8, which were the closing quotations
of yesterday, the prices receded to 72, but finally left off at
73 to 4 premium. In other railways little or no alteration
occurred, except in Brighton, which declined to 4 to 3i-
discount ; Great Western were 10 to 11 ; Manchester and
Birmingham to 1 ; the Extension line, to 1 ; Croy-
don, new, to 4 premium ; Croydon, old, sto 4.V ;
Greenwich, 3i. to 3; Blackwall, 2a to s discount ; North
Midland improved to par to 1 premium. .

POST.—An event of much interest to the commercial
world was communicated to us by the Antwerp papers re-
ceived in town this morning. We allude to the failure of the
Bank of Belgium at Brussels. It appears that this esta-
blishment has been compelled to close its doors for the pre-
sent in consequence of the heavy calls which have been
made upon it of late for the reimbursemcnt of moneys in
deposit, and the excited state of the country. Tbe ma-
naging Director, M. de Brouckcre, and two of his col-
leagues, have caused to be published a statement of the af-
fairs of the bank in question, from which it would seem that
time alone is wanting to enable it to overcome its difficul-
ties. The following is a copy of the document :

BANK OF 'BELGIUM.
LEDGER BALANCE, DEC. 13, 1838.
Cash, specie and notes 387,463,404
Bills
Public securities, A 1,106,026,567
Public securities, B 104,356,240
Accounts current
Advances on mortgage 81,133,334
Various credits 3,903.786
Loans on public securities
Cash of the secretariat 658,298
Advances on shares .. 33,500,000
Real property
Furniture
General expenses to be shared 5,442,360
Ditto of the year

Total francs

Capital
Reserved fund
Notes in circulation

Savings' Bank
Four-and-a. Half per Cent. Bonds
Accounts current
Interest of the Bank of 1837
Dividend ditto ditto
Interest on the Societies' ditto 196,490
Dividend ditto ditto 405,348
Cologne Railway Shares 491,111
Profit and Loss.. 64,791,366

Total francs 4,698,705,830
The Bank had, it appears, made known its situation to
the Government on Friday last. The Minister of Finances
on the preceding Wednesday afforded the institution some
assistance, without, however, being-aware of the extent of
its embarrassments ; and, unfortunately, when the actual
state of affairs became apparent to the Government, it was
impossible for them, considering the pressing nature of their
own pecuniary wants, to attempt more. This was signified
to the Directors on Monday. It was at the same time in-
timated that, in order to afford relief to the working classes,
it had been arranged with the Societe Generale that the
latter should charge itself with the liquidation of deposits
owing by the Bank of Belgium on account of savings. A
notification to this effect was accordingly issued, but it is
remarked in the Brussels correspondence, that since the
suspension of the Bank of Belgium a very general distrust
had been observed to prevail among the merchants and
capitalists in that city, and that a smart run on the other
banks had commenced. It is added that a meeting of the
principal creditors of the Bank of Belgium was held on
Tuesday afternoon, at which it was determined, as it was
believed, that measures should be taken to enable it to re-
sume. Its notes were in the meanwhile offering at 10 per
cent. discount. The demand f,r specie, even on the Societe
Generale (the Old Bank of the Low Countries), on the
part of the holders of its notes, is stated to have been very
great. The fill of the Bank of Belgium is attributed by
some to a want of foresight in the Directors, and to their
warlike predilections. The establishment was one of very
recent origin.
The public securities in this market were per cent.
lower at the commencement of business this morning, but
they afterwards recovered, and at the close they were again
quoted 9311 to Exchequer Bills left off at 635. to 655.
prem., and Bank Stock at 204 to 3.
The Belgian Bonds were not much affected by the news
from Brussels. They left off at 98 to 983-, after having
been done at 98, or about per cent. lower than yester-
day. The failure of the Bank of Belgium will, it is feared,
be severely felt at Paris as the shares forming its capital
are understood to be extensively held there Five per
Cent. Dutch Stock left off at 100 to 100 i ; Five per Cet.
O N'
H
Portuguese at 28i to 28i • and Active Spanish, with the
overduecß Coupons,cl6* to 16i.
A ru mirhasen currento .for some
days past that the Direetorlisbt.
theth the Bank of haveh
it in contemplation to contract
merchants and manufacturerswhon de onnl business
n at to the
branches in Lancashire, in order to check the " specula-
tion" in cotton ; and from the quarters here it was spoken
of confidently, there was every reason to expect that it was
well founded. This mistake—for we have taken some pains
to ascertain the correct state of things appears to have
arisen from the fact that a communication had been made
from 'Threadneedle-street to the branch at Liverpool, desir-
ing that particular attention should be paid to cotton opera-
tions,and to be cautious in receiving the bills of firms connected
with this business. It was to this letter we alluded yesterday,
and hoping to get a transcript of such an interesting docu-
ment alone prevented us going more fully into the

matter. It was at first thought that t was similar
to the famous letter forwarded to Liverpool in 1836,
desiring the bills of the " Under-mentioned" Ameri-
can houses to be thown out when offered for dis-
count, and which brought to a crisis that memorable
and deplorable panic, whereby some of the oldest and most
respectable firms were compelled to suspend payment, and
trade and commerce in every branch were convulsed to the
very root, and the strong impression that the present let-
ter was of this nature rendered it most desirable to procure
a copy. Such a melancholy state of things, cannot, how-
ever, be now brought about even by the Bank of England,
for the elements of a panic do not exist, and the Bank of
England, moreover, is comparatively powerless, and al-
most at the mercy of the joint-stock Banks. There
is, in fact, nothing of importance in the present
movement on the part of the Bank, except as show-
ing the limited knowledge of the Directors of the
true circumstances of such an important branch of com-
merce as the cotton trade. It has been recently shown,
almost innumerable times, in the Morning Chronicle and
in the best-informed Journals of Lancashire, that the late
advance in the value of cotton has been owing to no " spe-
culation" whatever, but to the large ascertained deficiency
of the crop of the present year. The prices of cotton at
this moment are not so high by id. per lb. as they were at this
period of last year ; and did any sane person then, we will
ask, ever dream of speculation ? Cotton is, indeed, still too
low, as far as calculations can be formed as to the existing
state of supply and demand, and will rise much further, to
the extent, it is thought by many, of 2d. per lb. within a
few months, and the Bank of England has not in its power
to lower prices by any operation, but the Directors may cer-
tainly injure themselves and their shareholders by driving
away their few remainiegcustomers t o the wealthy joint-stock
banks which exist so plentifully in Lancashire. To such an
extent, indeed, has the inconsistent policy of the Bank of
England operated to the prejudice of the shareholders,
that we know many estabishments make it a condition
that their bills shall never be sent to the Bank or its
branches for discount, and parties in the country, rather than
have recours to the Bank, send their bills up to Lombard-
street to be cashed. Again, the system adopted in cotton
speculations is such, that speculation cannot be carried to
any very great extent, for either instant payment in
mill is made, or bankers' acceptances at 60 days ten-
dered in lieu thereof ; so that although a purchaser may
pawn his purchases and again go into the market, yet the
margin between the advance and the value of the deposit
is so great, that the operations of this nature are soon
frustrated. The Bank of England, moreover, has so re-
cently extended its accommodation to the public, by in-
cluding " Exchequer Bills, India Bonds," &c. in their
list of deposits upon which loans will be made, so that
any counter-movement so immediately after issuing such
an order would have been inconsistent in the extreme,
and cannot, we should think, be seriously contem-
plated, even if the accounts from their branch at Liver-
pool are unsatisfactory ; and to be brought on besides at
this critical moment, when corn is at almost a starvation
price, and every necessary of life is advancing in cost—
when torch-light meetings are going on in various parts of
the country, and every clement is in force to bring about a
most eventful winter, would be short-sighted policy indeed.
Nothing would so soon bring matters to a crisis as to check
employment in the manufacturing districts ; but, as we
have before said, the Bank of England has not the power
of doing it, and, therefore, there need not be any apprehen-
sion or alarm on this head. The business transacted in
England in this most important article, cotton, is of much
greater magnitude than the public generally have any con-
ception of, and but few persons unconnected with trade
itself are aware that the exports of cotton manufactures
form more than one-half of the total exports of all other
British manufactures collectively.

H E RA L D.—We find that the chief losses by the Bank
of Belgium will be confined to parties resident in Paris,
Antwerp, and Brussels. It has never been in favour in
Holland, and this event will, doubtless, open the eyes of
the Belgians to the danger of such ricketty institutions,
anti the pleasing influence that the prospect of a war has
upon them.

MEETING OF MIDDLESEX MAGIS