The Sun.
London, England, 1847-10-21 00:00:00

STATE OF TRADE.

MANCHESTER, TVESDAT.—In our last report we
expressed a hope that, if the large amount of engage-
ments falling due in London and Liverpool at the
close of the week, should be met without producing
any serious disasters, we might reasonably look for
some relaxation of the existing pressure. Our
worst apprehension, however, has most unfortunately
been realised. The Royal Bank of Liverpool, which
was well known to be deeply encumbered by advances
on produce, has been compelled to suspend its pay-
ments and close its doors. For the particulars of
this most untoward event, we must refer our readers
to the letters of our Liverpool correspondents, and to
extracts from the Liverpool papers, given elsewhere.
It will be seen that some expectations were, at first,
entertained, that the Bank of England might be
induced to extend such aid to the suspended bank as
would enable its directors to resume their business.
Upon what grounds any such expectations could have
been entertained, we are at a loss to conceive. The
general management of the Bank of England has not
always been the most judicious of late; but there must
have been an utter absence of all true perception of
their own duties on the part of the directors, if they
had listened to the application. It is perfectly clear
from the present condition of the Royal Bank
(if we may believe the statements now current
on that subject), that its directors were as
utterly unfit to conduct the operations of a
large banking estalllishment, as were those of some
similar concerns in this town ; and if the directors
of the Bank of England, by advances of money,
had enabled them to resume their business, and to re •

peat at some future time their recent folly, with its
concomitant mischief to the public, the act would
have been not merely foolish, but criminal. We are
by no means clear that the Bank of England is in
any condition to undertake very large operations for
the relief of suspended banks ; but if its means had
been unliinited, the only answer which could be pro-
perly returned to an application for relief from such
a quarter, would be the same as that made to a Man-
chester joint-stock bank under similar circumstances,
namely, that no assistance whatever would be given
with the view of carrying on a bank which had been
rashly and imprudently conducted, but that if any
amount of aid, which could be prudently given in
winding up its affairs, which would diminish the
shock to the trade of the town, it would not be with-
held. Whether the directors of the Bank of Engla;:d
will now be able or willing to assist the Royal Bank
in going into liquidation, we are wholly unable to
say ; but such assistance would be not only unob-
jectionable, but highly desirable.
It will be seen that this suspension has caused some
pressure upon one or two of the other Liverpool banks,
though not to the extent which might have been
anticipated. One small establishment—the Liverpool
Banking Company,----is said to have requested indul-
gence from its depositors, but to have paid in all cases
where payment was insisted upon. The remaining
banks are, we believe, in a very safe position ; and we
trust that the public confidence in them will not be
seriously shaken. Indeed, the failure of the Royal
Bank furnishes no reason for uneasiness respecting
the rest. The erroneous principles on which its
business was conducted, and the extravagant amount
of its advances to particular firms, were sufficiently
notoriously ; and its fall at the present time cannot
cause any reasonable surprise. We are not altogether
without hope, that the occurrence of this failure,
though it must produce a considerable amount of
disaster at Liverpool and elsewhere, may bring us
nearer to a termination of the existing difficulties.
The known conditon of the bank weighed like an
incubus on the commerce of the port, and effectually
prevented any approach to an improvement in business.
Although the suspension of the Royal Bank has
caused, as might be expected, a great sensation upon
our exchange, it has not been attended by any
serious disasters here. There have been no failures
worth mentioning since our last report; and we are
glad to learn that the realisation of the assets of the
suspended firm of De Jersey and Co. is proceeding
very satisfactorily. It is stated that the advices from
Russia, in respect to its affairs there, are favourable ;
that the inspectors appointed at the meeting of credi-
tors have already received between forty thousand and
fifty thousand pounds, and there is every reason to
believe that a first instalment on the debts will be
paid very shortly.
In this market the amount of business transacted
has necessarily been small; but still the feeling of
depression is not so severe as might have been ex-
pected under existing circumstances. A few low
sales continue to be made for present cash ; but, as
it is pretty well known that there is a fair amount of
orders for American and German account in the
hands of the buying agents, those spinners and mann.
facturers who are able to hold their produce, or to sell
on the usual credits, will not submit to any material
reduction of prices,
The weekly return of the state of the mills, and the
workpeople employed in them, in the borough of
Manchester, which for some time has been gradually
becoming extremely bad, exhibits, for the present
week, a more unfavourable aspect than ever. It ap-
pears from the returns, that very few more than
one-half of the whole number of mills in this city are
now working full time, the diminution from last
week having been fifteen. The numbers of those
stopped altogether remain unaltered. This forced
reduction in the hours of working has necessarily had
a corresponding effect upon the workpeople, for the
numbers of those fully employed has been reduced by
nearly five thousand ; the increase to the numbers of
those working short hours has been 3,497, and to those
wholly destitute of employment, pltoyment, 1,233. There has
been a slight increase
total number of factory
hands now in the city, principallyogfertiiiiaßles.
Roc: LIDALE, MON DA Ir.--ThoUh market has
not been quite so brisk as for a few weeks
there has been a fair amount of business doneT:tt