The Sun.
London, England, 1841-01-21 00:00:00

STATE OF TRADE.

(From the Manchester Guardian.)
The advises just received from the United States,
by the Caledonia steamer, pretty generally concur iv
representing the amount of the coming crop of cottor
as somewhat less than had been previously supposed;
and the most trustworthy estimates arc generally from
1,700,000 to 1,750,000 bags, and the prices have a
It
in all the markets of the United States. t
must he recollected, however, that these estimates arc
founded upon the representations of the plantnetrsc:fr,are interested in reducing the apparent
Mpanchester,
he
effect upon prices either in Live,ropoodos,
crop. Hitherto they do not seem toi
oiarveararaoaduced any
M generally
nd initthis m.arket, and
their arrival. Yester-
cotton, as well as yarn n
continued perfectly steadya d''
previous rates,
yarn, decidedly ad there
fair
amounttva so;
businessn i o er
ss,(l,l:estmea done
which arc still, especially, in reeled
be-
low the relative prices of cotton ; the advance in the
latter being generally about 14d. per pound, whilst
yarns generally have advanced little more than three
farthings. The spinners arc, consequently, in a worse
condition than before, and the foreign buyers show very
little inclination to give increased prices.
itoci-IDALE FLANNEL MARKET, MONDAY, JANN. 18.
we have had a dull market, and thinly at
tended by i'_auyers. There is no change in prices. The
wool market i, much the saute as that of last Monday..

fiCUL TION' QF PRIVATE BANKERS,—
Mr. Loyd states, that one f,yil of the principle of compe—
tition i, that when one banker- contracts his circulation.,
the neighbouring honkers increase their issue, in order to.
fill up the vacuum which is thus crcatzd. If this were the:
fact, it is difficult to conceive how the vutal circulation of
the country could ever be reduced. Be, nevertheless,
the fact is, that the total circulation does vary, not only
front year to year, but from month to month. The charge
of excessive competition 1153 been more directly brought
against the Joint Stock Banks. If, therefore, the private
bankers reduced their circulation, the Joint Stock Banks
would, of course, seize the opportunity of extending theirs.
Now, how stands the fact? The average circulation of
the private bankers in March, 1839, was 7,340,793/., and„
by M:ircl!, t+4o, it svit reduced to 6,191),3061, Now, upon
Mr. .
principle, a large increase should have taken
place in'the issues of the Joint Stock Banks; and had we
not the returns of.the actual ;mount, etc could not disprove
°p
we ool); but, on referring to these returns,
the Joint Stock circulation in March, 1839,
iNI r .
tied
o)
that.
was -1,617.806/. and in March, I 111, it was Z1,8!6,748/.
So far from an increase, here is a reduction, and that, too,
in nearly the same proportion as that of the private
bankers.— IV estrnin,ter Review.
BUYING THE CINDERS.—On Saturday last,
certain contractors sent in, to the vestry of Marylebone,
tenders (which were accepted)to the amount of four thou-
,sand one ltundred and fifly pounds for permission, t 9 cut
Vawsy,th cinders (breeze) Qf the iahttbitants,

!EVENING EDITION

"MONEY MARKET and CITY NEW::'.

WEDNESINAT EVENING.)
CHRONICLE.—The. English Funds were heavy to-
day. Bank Stock was tagain 1 per cent. higher, being
quoted 170 to 171. Exenequer Bills gave way to 65. to
85. premium, being a. decline of 2s. since yesterdete
Money continues quite: easy.
We regret to hear. of the failure of the respectable firm
of Messrs. Garry and Curtis, Russian merchants. This
failure will no d ,übt lead to a vacancy in the direction e
the Bank of E egland, Mr. T. A. Curtis, the streihitet
partner of the, above firm, having a scat at the NBA, and
having fere' .orgy filled the office of Governor and Deputy-
Ge:vernor 'Jf 'le Bank. The amount of the liabilities is
stated to tee under 40,0001.
Thy.e cost of maintaining the paper circulation of
the „lank of England is stated at about 2,1 per tete.,
and. the profits derived from the mettritty banltt :Von
1.404 issues is reckoned at more than pet cent. In
the event of such a change beia adopted es we
Jieve advocated that of s.upertoding the Bank of
ifs gland, and all other banks, in their functions of
tesuing paper money, by the appointment of a Board
'chosen by the Crown—remuneration fee the loss of pro-
fitj, which would thus be entailed on the banks of issue be-
comes a question of importance. Some parties, we believe,
hove been blind enough to the force of tritional rights
as to argue with seriousness that the banking interest
find really a " vested right" in creating paper money.
Th's notion is quite crroneeus. Any claim of com-
pensation on the part of the hanks as a matter of right
is altogether untenable. We only allude to the subject to
state this ; but we observe that some of the witnessee
'examined by the Committee were of opinion* thet an
eitl;w
aece of 15s. per cent. should be made to the
'country banks as an equivalent for the toes. Such a sug-
gereiou was thrown out by Mr. Norman in the event of
the suppression of country issues, by the substitution
of Bank of England paper as the sole bank of issue,
nod e.s a means ti reconciling the basks to the
proposed change. In that view of the subject,
the proposal seems reasonable enough, although open
to the objection that private individuals might get
possession of Bank of England notes, and, putting them
iJe circulation,
claim the commission ; but the loss of the
!profit on paper money
would not break up any of the ex-
isting banks. Their profits on deposits and discounts, and
tee operations of economising money belonging to the
trade of money dealers, are sufficiently attractive, and
ample enough to make banking, in its free and legi.imate
oense, exclusive of creating paper money, a valuable and
permanent channel of investment for capital, and even if
some of the present banks were to discontinue, others
would quickly take their place. But supposing that the
functions. of issue were to be taken away altogether from
the Bank of England, and placed in the hands of Crown
c:ommiattioners, we are not convinced that it would be requi-
site to 'allow any commission to the banks for circulating
the eetucen's notes. They would find their way fast enough
ev.o circulation by the necessity of obtaining them to
atpiace the present currency. Much noise has been made, and
is ore no doubt will still be made, as to the great demand
e'er money which would be produced by the process of call-
ing in the present paper money preparatory to the change.
The measure would require to be set about with judgment,
and proper time allowed to carry it into effect ; but this
would be duly provided for by Parliament, and we are
satisfied that it could be adopted without disturbing the
transactions of commerce, or injuring in any degree the
rights of parties under subsisting contracts. The public,
indeed, would be evident gainers instead of losers by the
substitution of Government paper, fenced with the secu-
rity of unquestionable convertibility, and the only losers
uld be the banks of issue, who would be merely de-
prived of the profit which they enjoy on their notes
-payable on demand—a profit to which they have no
right—and which tempts them to inflate prices and en-
courage speculation to the injury of trade and the
best interests of the nation. Such powers ought not to be
'entrusted to the hands of any class of individuals ; and the
;notoriety of the fact that the more it is abused the greater
tic profit drawn by its possessors, is a cogent reason for
its entire suppression. The notoriety of the fact, also,
that the country issuers unequivocally repudiate the doc-
trine that they should regulate their issues by the Foreign j
Exchanges is so replete with dangerous error, that it be-
comes the duty of the Legislature to stop its agency before
it does more mischief. The leading advocates of compet-
ieg issues scout the idea of being regulated in their cir-
culation by a reference to the influx or efflux of gold.
They have been rash enough even to ridicule that principle
as old and antiquated, totally unfit to occupy the atten-
tion of the philosophers who conduct joint.stock banks.
They made a bad point in committing themselves
by such a statement, because it is showing the
cloven foci, rendering it manifest that they are ac-
tuated by attention, to self.profit instead of public
good, and that the security of the country, in respect
ef a steady 'convertible paper money, is in opposition to the
aggrandizement of their class. They are actuated entirely
VII he selling price of the staple commodities in their res-
pective districts, and they argue that a high price of corn
is a sufficient justification for increased issues. This ar-
gument entirely uproots the possibility of preserving the
convertibility of paper money. It is a doctrine radically
unsound, and one that, if allowed to go on unchecked,
would necessarily be productive of mischievous consequen-
ces. To use the words of Mr. Jones Loyd, " I conceive
it to be unsound for this reason, that when prices rise in
any country, of course that very fact creates an additional
inducement to foreign countries to send their commodities
here, and a diminished inducement to take our commodities
from us ; consequently that must have a strong tendency
to produce an export of gold, and ought to lead to a con-
trectien of the circulation. Now, the principle here laid
down is to meet that state of things by an opposite course,
namely, by an expansion of the circulation."
The constant rise which our dail, quotations show in
the value of Bank Stock is remarkable, and various causes
are assigned for it. Among others, the very natural one
that the Directors have come to an understanding with the
Government that the Charter is to be renewed on the
principle of subjecting the management to the control of
Crown officers. We know no good reason for this report
Ite';ides its probability ; but, as we have already said in the
'course of our observations on this subject, we are quite con-
fident that the right of Crown interference must he sup-
ported by the leading men of all parties. The only
difference will be as to the extent to which the prin-
ciple should be carried. We have entered fully
into an explanation of the constitution of the Bank
of France, and stated our views as to the expediency
of adopting it as a model in this country. That this
would be an improvement on the present system there can
be doubt ; but we would wish to see it carried to a further
extent so as to separate the issuing department effectually
from the discount and deposit business, and thus give the
public the full benefit of Parliamentary control and fre-
quent and full publicity of accounts. Unless the Crown
officers have an active influence in the issuing department,
and means are taken to secure the adoption of the true
principle, that of keeping the circulation regulated in ac-
cordance with the store of bullion, the mere acknowledg-
ment of the right of Crown interference, and of conse-
quence, Ministerial responsibility, would not be attended
with any efficient reform in our monetary system, nor would
the reiteration have any chance of satisfying the country.

TIME S.—lt transpired in the City early in the day
that the house of Garry and Curtis, a leading firm in the
Riga trade, had stopped payment, an event which excited
Innen surprise, as the !louse is one of long standing and
great respectability, while its credit has not been shaken by
the knowledge of any previous disasters. Of the more im-
mediate cause of the failure, the rumour is, some necessity
which has atiscn, through proceedings in Chancery, for
withdrawing the capital of the senior partner, Mr.
()aro.. The engagements are variously stated, but none
of them at any large amount, the highest being about
Cf)000/ , which is probably much beyond the truth, as
the transactions have been very limited of !ate years,
and the bons.... presumed to be the more safe on that ac-
count. Mr. Curtis was Governor of the Bank of Eng-
land in 1838 and 1839. and has taken the lead in several
puhhe Companies, more particularly with one established
for the improvement of the communication with India by
St ea m-a project, however, which has not yet been brought
into active operation. No man could be more generally
emed than Mr. Curtin has been for his gentlemanly
demeanour, easiness of access, and manly, upright con-
duct, on all occasions. The regret, therefore, at his mis-
fortune. for the whole weight of it may be said to fall upon
him, is universal.

Some small sales of stock produced an unfavourable in-
fluence on the Consol.market, but they do not rppear to
beer pr9rnptcd by any political cause.

IiER ALD.— Reports in circulation about an early
disiiolution of Parliament, which must lead to extensive
vales of Consols to meet election contests, had the effect of
depressing the Funds.
The stoppage of the respectable firm of Garry and Cur-
tis was announced to day, and although in certain circles
it may not have been unexpected for some time past, yet
to ;he City generally it created a considerable sensation.
Mr. Curtis, the managing partner in concern, was the
Governor of the Bank of England some three or four
years ago. It is stated that the leading partner hai been
for %Erne time labouring unfortunately under
a mental
nfiltcion. The house has been long established in the
hussar. trade.
Cheap government in the United States appears to be
very much the same sort of gullible affair as cheap bar-
gains in Europe. The following statement of the progress
ut cheap govern:no-it from the ascendancy of moderate or
consenative principles to those of democracy in its wildest,
that is /two loco, abstraction, is taken substantially from the
Fero York Gazette, where the particulars by the presiden-
tial term, by the year, month, day, hour, minute, and
second arc given tabularly.
John Quincy Adams was President during four years.
The total expenditure of Government for the whole term
of + flies amounted to
ueral J ickson eight year;
Van Buren four years
J. Q. Adams per year 12,625,400
G. sacral Jackson
Van Burro
Demoer;itie expenditure travels, as will be ECM, by rail-
way, for Martin Van Buren carries the palm over the
mire modest John Quincy Adams at the increased speed
of somel,7o to 175 per cent. per annum.

POST.—Some little sensation was created in the City
this morning by the announcement of the failure of the
well-known Russian house of Garry and Curtis. The
fact of Mr. Curtis hatin but two or three years since,
g,
passed the chair of the Bank of England, caused more to
be made of the event than the actual circumstances con-
meted with it would seem to wartarut. It will probably
turn cut that the liabilities of the parties arc very limited,
and that the firm is one of those old.fasb:oned establish-
ments which have b?en superseded in their business by the
new and more economical system that has obtained among
eoirmrsrcial men during the last fifteen or twenty years.
The senior partner, an estimable man, has, wo believe,
been for sores time labouring under a state of mental pro•
stration thta ha% prevented hia taking any share whatever
in the management of the concern. The friends of this
gentleman (Mr. Garry) arc, indeed, reported to have hrs
wiled the suiTension from prudential motives, the affairs

of the house having been for the last 'eighteen months or
two years suspected to be in Aft trnbarrassed condition.
The English Funds d'il!clined to per cent. to day.
To account fear the change the only thing we heard stated
was; that there was an intention to dissolve Parliament.

SUN.—The Funds were heavy to-Ilay-, proahly
on account of a disposition, m tht dart ZA the public,
to realize their prrits..oti t/4 -recent improvement in
prites.
Ifft'Vallie of Consols for immediate transfer was re-
duced from 904 and 89 to 90 and 8911.1. atstl, rot the
Account from 904 and poi to f)O4. and 'B9i. The clos-
ing quotations were, tiC!.l•.t for the t'Ormer, and 90 for the
latter, t Nefleiluer Bills brought 6s. to 10s. premium,
and East India Bonds Bs. discount, being each rather
`O'lyer. Bank Stock. went up 1 per Gent. lapin, viz. to
170 and 171 ; but we are unable to assert with confi-
dence whether there is any truth ih tho statement that
the Charter of the Bank of v, ng,lani is likely to be re-
tmed, and that Government Commissioners will be
appointed to t heck the administration of its affairs, as
in France, la lieu of sweeping reforms in the currency.
The New Three-and-a-Half per Cents. were at 981
to 97i.
Not much animation prevailed in the Foreign Stocks
or in the Railway Shares. Spanish Active Bonds, in
consequence of the still rather unsettled state of affairs
at Madrid, went down to 24 ; Portuguese Ne.w Five
per Cents. were at 32 to 34 ; and the Three per
Ceuta, at 205 ; Mexican Botius were 28!2- to ; Bra-
. titian 724 to 73 ; French Five per Cents. ; and
Dutch Two-and-a-half per Cents. 50.1 to 1.
The Railway Shares were barely supported at pre-
vious rates. South Western declined to ISt, and
Great Western to 2,54 premium ; London and Bir-
mingham were 83 preminm ; London Joint Stock
Bank Shares were 3 premium without the dividend,
and Australasia Bank 14 premium.
The failure of a member of a wealthy family engaged
in banking pursuits in the City, did not cause any great
sensation to-day. The liabilities are understood to be
rather considerable. The party was connected with
the trade to the north of Europe.