The Sun.
London, England, 1825-12-13 00:00:00

THE LONDON JOURNALS.

DAILY

Extracts- from the Morning Papers, Dec.l3, 1825.

[TICE TIMES.]
With respect to the crisis which now agitates
the city, our manner of treating it shews that it
creates in our minds no great terror as a national
evil. We feel for men of real capital and sub-
stance who are brought into pecuniary trouble or
perplexity by the arts of others, or even their
own inconsideration ; but we have seen enough of
banking concerns to know, that if the present
crisis were to pass away hastily, the market of
extravagant speculation would resume its recent
vivacity ; many who are now trembling would
forget their fears, and be as brisk and swaggering
as ever. In fine, the lesson, however terrible,
would be lost. There has been an immense
over-trading and over-speculating on fictitious
capitals. The schemes but lately afloat,
though they may not any of them singly have
equalled in extent and magnitude the celebrated
South Sea Bubble of last century, were yet so
numerous and weighty as to carry with them a
much greater mass of fraud and deception in the
aggregate ; can we, therefore, wonder that the
result has been similar? It is likewise a very
singular state of affairs that the Bank of England
should be without the issue of a single one or two
pound note, and that country bankers, many of
them mere retail shopkeepers, should be de-
luging the provinces with millions ; not that we
complain that the former have them not, but that
the latter have them. If notes of that descrip-
tion are to be in circulation, it is like
abdicating the reins of financial govern-
ment for the National Bank to decline the
issue to them, and allow it to take place
from comparative hovels in the country. In
large provincial towns, certainly, the word Bank
makes a showy figure, and is placed over a re-
spectable structure but we have known cases
in which the word Dairy, or Cheese-room, would
be a much more suitable description of the tene-
ments from which so great a proportion of the
circulating medium of England issues than that
of Bank. Unfortunately, as the Small-note Bill
now stands, this privilege of issuing one and
two pound notes is allowed to country bankers
till the year 1833. This, however, cannot
last ; and we have no doubt that it will be
proposed to repeal the clause as soon as Par-
liament meets. It might be prudent, therefore,
in country bankers of any credit 60 look to a re-
trenchment in their circulation of small notes.—
With respect to the affairs of the city, it is im-
possible that what we have said ca❑ affect any
" good house." We would not have men whose
concerns rest upon the basis of real substantial
property shaken ; but it is most desirable for the
credit and future comfort of such in the con-
ducting of their business, and for the general
peace of the commercial community, that the
hangers-on upon an honourable profession should
now he shaken off ;—that is, that ►nen who have

no other funds than the misplaced confidence of
the public, should be driven to get their bread
by a more honourable and more healthy industry
than that of fabricating reports, and watching
the money-market.

[MORNING POST.]
The apprehensions which had been entertained
for some days were realized, we regret to say,
yesterday merning, when the eminent banking
house of Sir Peter Pole, Thorntoni and Co.
stopped payment. The event occasioned Jeep
and general consternation. ft had been under.
stood that the Bank having been satisfied that
the firm were provided with securities to an im•
mense amount beyond all engagements had libe-
rally interfered to assist them. But notwith-
standing this interposition, the run upon them
continued unabated, and the unreasoning panic
which prevailed created that which it most
dreaded. During the whole of the last week,
the house withstood the heaviest uninterrupted
pressure, but being unable to realize at once
its securities, a temporary stoppage became
necessary. This, we understand, would have
taken place on Saturday: but the London bankers,
in order to prevent the effects which must
have ensued in the country, had the intelligence
been suffered to go by that day's post ere any
preparation could be made to meet the blow,
with a degree of judgment and public spirit which
does them honour, propped the House among
them, and dispatched by the coaches on that
evening, to their various country connections,
sufficient gold and Bank of England notes to meet
any run, so that the news going by last night's
post will find its antidote in the bullion and cash
previously dispatched, and the apprehended mis-
chief, if not totally prevented, will, at all events,
be much lessened. This is the more fortunate,
as the Firm that has stopped is said to have
been connected with upwards of forty Coun-
try Banks. The alarm produced by this fail-
ure yesterday morning was encreased by an
unfounded and nefarious report, that another
great London House had stopped payment, and
for a short time the confusion was so great, that
there was scarcely a Banker in this metropolis
who-was deemed capable to withstand the shock.
Under the influence of these rumours, Consols
for the. Account opened at 821 -1, and fell with-
considerable rapidity to 811 Q, which was the
quotation at about half-past twelve. At this
period the rush to sell all sorts of Securities ex-
ceeded any thing known of late, and Exchequer
,Bills were at 60 discount, rndia Bonds 45, and
even the advertised Exchequer Bills were at
30' discount. The three per Cents. Reduced
were at 79, and the three and a half per Cents.
were quoted at 83 to 85. In fact, it was
difficult to obtain any real price for any thing
but Consols for Account, for money was out of
the question. As the day advanced a new series
of report obtained currency. One was, that
Lord Liverpool was at the Bank, conferring with
the Directors respecting the state of the Funds ;
another, that the Chancellor of the Exchequer
was with them for the same purpose ; a third
(and this was more credited), that the partner of
one of the most eminent banking houses had been