The Sun.
London, England, 1847-11-08 00:00:00

lii :1Z SUN, LONDON, MONDAY EVENING. NOVEMBER 8, 1847.

Thompson in that suggestion, it had never been his
intention in that way to oppose any obstacle to the
eventual resuscitation of the bank.—(Hear.) Their
duty had been to take the best mode of raising funds,
with a view of returning to depositors their money ;
their duty at the same time was to do all they could
to restore the bank ; but there could be no doubt
which object, if they were not identical, ought to
have been the primary one. On the whole, he did not
disapprove of what had been done, and he felt the
greatest pleasure in supporting the recommendation
of the committee. There had certainly been hitherto
too much secrecy about the bank, and the share-
holders for the future would have a right to expect
the strictest investigation into the manner in which
their affairs were managed and their money disposed
of. It was now, indeed, quite palpable, and so far
their past management had been impeached, that their
assets, being in few hands, and shut up in a small
space, were in much greater danger than if they had
been scattered over a large surface.—(Cheers.)
The motion was then put, and the report was
unanimously adopted.
Mr. COOPER again presented himself, and moved a
second resolution, intimating the confidence which
the meeting reposed in those seven gentlemen who
had so ably attended to their interests, and requesting
them, in conjunction with the directors, to continue
their labours, with a view to the re-opening of the
bank at an early day.
Mr. EDWARD BURY seconded the motion.
Mr. Toxa moved as an amendment that Messrs.
J. Highfield, J. Booker, F. Shand, J. Bibby, and S.
ilolme, form the committee.
Mr. GREY seconded the amendment. _

After some further discussion, Mr. TORE, who
declared that his object had only been to facilitate
business, withdrew his amendment, and Mr. Cooper's
motion was carried, the name of Mr. Samuel Holme,
by general consent, being added. Eight gentlemen,
therefore, now form the committee.
A vote of thanks was then accorded to the chair,
and after a numerous list of those who, since the
commencement of the meeting, had put down their
names for preference shares had been read, the meet-
ing (at twelve o'clock) broke up.

so cause further failures, further discredit, and still

greater panic, the Irish banks, including some of the
most powerful establishments in the kingdom, being
as they are exposed to peculiar danger, in times of
distrust, from the ignorance and proneness to suspi-
cion of the small note holders, must have increased
their stocks of bullion with redoubled energy and
dispatch, and thus must have aggravated the force of
the internal drain to which the Bank of England has
been subjected. Nor would it have been possible for
the Bank, with its liabilities to private depositors
to the extent of eight millions, to resist the ope-
ration. Happily, however, the necessity for re-
stricting credit, and aggravating panic, was
removed. The Bank, instead of discontinuing
its advances, was enabled by the act of the
Government to increase them, and the influx of
bullion into its coffers has more than filled up the
void left by the remittances made to Ireland and to
the provinces. There is every prospect that the current
of the metals will continue to flow into this country
steadily for some time, from the attraction which the
low value of English securities presents to the invest-
ment of foreign capital. A million of gold is already
on its way from Russia, and the speedy arrival of
considerable sums from the United States may be
considered a matter of certainty. Thus the Bank of
England will be in a position to meet the utmost
possible home demand for gold, if it should be.further
prolonged, and yet to retain an ample supply in its
own coffers. Such being the condition of the Bank
with respect to its bullion, it is worthy of notice that
the very considerable advances made upon commercial
bills in the last week of October produced but a slight
alteration in the proportion between the reserve and
the gross liabilities. They were, for the

WEEK ENDING OCTOBER 23.
Liabilities £34,300,000
Bullion
WEEK ENDING OCTOBER 30.
Liabilities £35,370,000
Bullion ... 8,430,000
The proportion in the former case was as 1 to 4.13,
and in the latter as 1 to 4.19 ; and we do not see that
there need be the slightest hesitation on the part of
the Bank, in the present circumstances of the coun-
try, to extend its liabilities a good deal further, if
necessary, upon the basis of its present reserve. We
see no reason for doubting that additional loans might
be granted with perfect safety to the extent of three
or four millions, if parties should be found desirous
of obtaining them on good security, and at the pre-
sent high rate of interest. We do not anticipate any
such demand, but if it were made there would not be
a shadow of reason to refuse compliance with it. The
directors, however, are still either very timid, or they
are influenced by a fidgetty and foolish anxiety
to avoid a literal violation of the Act of 1844. We
cannot otherwise account for a very small and rather
ridiculous operation of which they were guilty during
the week already referred to. They appear to have
parted with 286,000/. of Government securities, that
they might obtain money, at the very time that they
were practically breaking the law, in order to make
money more accessible to others. This was mar-
vellously like undoing with one hand what they were
doing with the other. Why, we are obliged to ask,
did the Bank go into the market as a borrower pre-
cisely when it had been invested with extraordinary
powers to lend, and when the restoration of confidence
being the main point, the fact of the Bank appearing
either as a borrower or seller was calculated to coun-
teract the object of the Government intervention ?
Was it done to obtain gold ? No. The only as-
signable motive was, to reduce by a small amount its
own outstanding circulation, and thereby to avoid
the risk of overstepping the limits of the Act of 1844.
Thus the restoration of confidence was endangered
for the sake of an object in itself utterly unimportant.
Putting out of view the technical provisions of an
Act which is to all intents and purposes broken, it

cannot be a matter of the smallest possible conse-
quence whether the bank-note circulation is a quarter
of a million more or less. In point of fact, we do
not believe that the limits of the Act, however nearly
they may be approached, will be exceeded. The
payments into the Exchequer have already com-
menced, and will go on as usual, at the rate of nearly
a million a week, during the two months of Novem-
ber and December. Hence those two months always
exhibit a large and steady decline in the circulation.
It is probable, therefore, that it has now touched its
highest point, and nothing but a discredit of country
bank-notes, or an increased prevalence of distrust,
can sustain it at that point ; but if, by any possibility,
an additional circulation of Bank of England notes is
found to be required, we think the directors would be
guilty of an unpardonable error in attempting to
check the movement by new restrictions. The in-
crease in the circulation during the last month ex-
ceeds by nearly a million and a half the increase which
usually takes place in October. Between the 25th of
September and the 30th of October the increase was
2,800,0001., whereas in the corresponding
period of last year it was only 1,500,0001.
The extra increase we presume to be the
result of distrust. Private hoarding has
absorbed a part of it, and the remainder has gone to
increase the cash reserves of country bankers. It is
perfectly obvious that all such bankers must hold at
present a larger stock of gold and Bank of England
notes than usual. It is possible, but we trust not at
all probable, that they may have still further to in-
crease their reserves. If this should happon, a further
increase in the Bank of England circulation will be
inevitable, and the only danger will be in attempting
to stop it. Such an increase would be purely tempo
rary, and the surplus notes, after being retained for a
while in private hoards, and the strong-boxes of
bankers, would flow back with the restoration of con-
fidence, and would not in any case cause inconveni-
ence to the Bank. The sudden increase in the Bank
circulation at the end of 1825 is well known. In the

month of December, when distrust was at its height,
the issues were increased from 17,400,000/. to
25,700,0001., a difference of more than 8,000,0001.
Part of the increase was wanted for actual circula-
tion, to replace the notes of country banks, but
the greater part was used only for hoarding and to
strengthen bank reserves. In about six months the
excess, which proved to be about four millions, had
flowed back to the Bank. This vast increase of
issue, at a time when the bullion in hand was little
more than a million, was undoubtedly an empirical
and hazardous proceeding, though the success which
attended it was complete ; but we refer to it only for
the purpose of showing how easily and naturally the
temporary excess of circulation disappeared. Com.
paring the half-yearly accounts of circulation and
bullion immediately after the expansion with those
which next followed, we find—

Circulation. Bullion.
1826 Feb. 28 £25,400,000 £2,400,000
Aug. 31 21,500,000 6,700,000
1827—Feb. 28 21,800,000, 10,100,000

Thus the sudden increase of discounts and circulation
at the end of 1825 did not in the slightest degree
check the influx of bullion from abroad. It did not
prevent a continued fall of prices consequent on the
previous over. speculation, nor did it restore to life
any of the numerous projects of loans and companies
which had been crushed by the previous contraction
of credit. It produced a wholesome revival of con-
fidence. The legitimate business of the country
began to move in its natural channels, and the bank•
note circulation settled down in a few months to the
amount determined by the real wants of the country.
A similar expansion arose out of the commercial
crisis of July, 1810. Commercial failures to a large
extent, and a consequent destruction of private
credit, took place in that month, and the demand
upon the Bank for discounts became enormous.
This led to a very large increase in the Bank circu-
lation, which, like that of 1825, served a temporary
purpose, and then flowed back into the Bank of its own
accord. Mr. Manning, a Bank director, informed

the committee of 1812 that this temporary expansion
was mainly owing to the precautions of the country
bankers to insure themselves against a run upon
their firms, " but within six months the greater part
of three millions was returned to the Bank of Eng-
land without having been employed." The quota-
tion, as well as the ,leading facts connected with the
increase of Bank of England issues in 1810 and
1825, may be found in Mr. Tooke's " History of
Prices." They involve, of course, many questions
of controversy, but the two instances show clearly
that an increase in the amount of Bank of England
notes is natural in a time of distrust, and that as
confidence revives the excess disappears without
any injurious result. It may be important at the
present time that the Bank directors should not be
terrified at this harmless phenomenon. We do not
expect, as we have already said, to see the circulation
go much, if at all, beyond its present point. We do
not anticipate, therefore, that the letter of the law will
be violated. But if the disposition of country bankers
to strengthen their reserves should continue to such
an extent as to raise the circulation above the legal
boundary, we think the directors of the Bank of Eng-
land would incur a grave responsibility if they hesi-
tated to use freely, as they have already used par-
tially, the discretion invested in them, or if they
should be tempted, by a superstitious regard to the
lifeless and worthless form of a condemned artificial
regulation, to employ measures which they would not
think necessary or wise from a consideration of their
own real resources and liabilities, and of the actual
wants of the country.

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(ADvEIITIBEMENT.] —A BAD LEG OF THIRTY-FIVE
Yamts' STANDING CUBED BY HOLLOWAY'S OINTMENT AND PILLS.—
The particulars of this extraordinary case are as follows :—Mr. James
M.Donald, a native,, of Ireland, now residing at 7, George-yard, Whitecliapel, was discharged from the navy, in 1813, in conse-
quence of his legs having then been bad for two years, and e-yard,
pro-
nounced in Plymouth Hospital as incurable. Duriag the former long
ulhee.gral,Xledanikh,ilhilytt,adh
athiktader the adviceeli outfyrthuelismtaousdt
isutilthfule sdurregaedofunls
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by all dealers in ine:Ylne
years of suffering, the limb is now soundly
y e 424 " 116110WarViltnthtmeenrtruanpricletP9111,18s,
xwititaicuhulure
esoultd,
244, Strand, London.

UNITED STATES AND MEXICO.

The following is a translation of the last commu-
nication made by the Mexican Commissioners to Mr.
Trist previous to the renewal of hostilities. It has not
before been published in this country :
" To ins EXCELLENCY MR. NICOLAS P. TRIST, COM-
MISSIONER:WITH FULL POWERS FROM THE GOVERN•
M ENT OF THE UNITED STATES TO THE GOVERNMENT
OF THE REPUBLIC OF MEXICO.
" Chapultepec, Sept. 6, 1847.
" The undersigned, commissioned by the Govern-
ment of the Republic of Mexico to concert with your
Excellency a treaty of peace, think it convenient at
the same time as they present you the counter project
which they have formed in accordance with the last
instructions of their Government, to accompany the
said project with the observations which are con-
tained in this communication, which will serve
to explain more clearly the pacific dispositions of
Mexico in the war which unfortunately divides both
countries.

" The fourth article of the project which your Ex-
cellency was pleased to deliver over to us on the even-
ing of the 27th of August last, and which has been
the subject of our last interviews, imports the cession,
on the part of Mexico, first, of the state of Texas ;
second, of the territory situated out of the limits of
that state, which extends from the left bank of the
Bravo River to the southern frontier of New Mexico ;
third, of the whole of New Mexico ; fourth, of both
Californias.
" The war which now exists has been caused solely
on account of the territory of the state of Texas, over
which the republic of North America presents as a
title the act of said state by which it annexed itself to
the North American confederation, after having pro-
claimed its independence of Mexico.
"The republic of Mexico agreeing (as we previ-
ously.informed your Excellency), with due indem-
nity, in the pretensions of the Cabinet of Washington
over the territory of Texas, the cause of the
war has thereby disappeared, and therefore the war
ought to cease, as there is no cause whatever to
continue it. Over the other territories contained in
the 4th article of your proposal no right has been
alleged as yet by the republic of North America, nor
do we think that it can allege any. It can only
therefore acquire them by the right of conquest, or
by that which may result from the cession and sale
which Mexico may make to it; bat, as we are certain
that the republic of Washington will not only abso-
lutely repel, but will also abhor the first of these
rights, and as also it would be a new thing, contrary
to all ideas of justice, that war should be waged
against a country by reason only of its refusal to sell
the territory which one of its neighbours desires to
purchase from it, we hope, of the justice of the
Government and people of North America, that the
considerable modifications which we have to propose
to the cession of territory (out of the state of Texas)
which are demanded in the before-mentioned fourth
article, will not be a motive to continue a war which
the worthy General of the North American troops
has already qualified to be denaturalized.
'"'" In our conferences we have informed your Ex-
cellency that Mexico cannot cede the zone which
exists between the left bank of the Bravo and the right
of the Nueces. The reason for it is not only the
complete certainty that such territory has never be-
longed to the state of Texas, nor because it is held in
much estimation, considered by itself alone ; it is be-
cause that :one with the Bravo at its back, forms the
natural frontier of Mexico, both in a military and
commercial point of view ; and it cannot be required
from any nation whatever, nor can any nation con-
sent, to abandon its frontier. But, in order to avoid
every motive of conflict for the future, the Govern-
ment of Mexico promises not to found any new towns
nor to establish any colonies, in the space of land
between the:two rivers ; so that, by preserving it in a
state of depopulation, as it is actually, it will afford
equal security to both republics. The conservation
of that territory is, according to our instructions, a
condition sine qua non of peace. Sentiments of ho-
nour and delicacy (which the noble character of your
Excellency will worthily esteem), more than any con-
sideration of interest, forbid our Government to con-
sent to the dismemberment of New Mexico. On this
subject we think it superfluous to add anything to that
which we have already had the honour to explain to
you in our conferences.
" The cession of Lower California (of little ad-
vantage to the republic of North America) presents
great embarrassment to Mexico, considering the
position of that peninsula, opposite the shore of So-
nora, from which it is only divided by the narrow
Gulf of Cortes. Your Excellency has given all its
value to our remarks on this point, and we have seen
you with satisfaction yield to them.
" The fact of Mexico preserving Lower California
would be sufficient to render it indispensable to keep
also a part of Upper California ; as otherwise that
peninsula would remain without any communication
by land with the rest of the republic—a thing which
is always of great embarrassment, especially to a
power which is not maritime, like Mexico. The ces-
sion which our Government offers (with the due
compensation) of that part of Upper California north
of the 37th degree of latitude does not only afford to
the United States the acquisition of an excellent lit-
toral, of fertile lands, and perhaps of unworked
mines, but presents all the advantage of continuing by
it, without interruption, its possessions in Oregon.
The wisdom of the Government of Washington, and
the laudable application of the North American
people, will derive most abundant fruits from the im-
portant acquisition which we now offer.
" In the Bth article of the proposal of your Excel-
lency,
isthmusof Tehuantepec
the
o to
f a free passage through the
the
Pacific Ocean is re-
quired in favour of the North American citizens.
We have verbally informed your Excellency that a
privilege on this matter was granted some years ago
by the Government of the republic to a private per-
son, which privilege was afterwards transferred, with
we Excellency
accede in this point to the
the authorization of the same Government, to some
will not, therefore, be
British subjects, of whose rights Mexico cannot dis-
wishes of your Government.
" We have entered into this simple explanation of
the motives which the republic has for not transferring
astonished ish ed Yourth a t do not
to the United States all the territory which is de.
manded by them out of the limits of the state of
Texas, because it is our desire that the North Ame-
rican Government and people be persuaded that our
partial refusal does not proceed from feelings of
aversion created by the antecedents of this war, or on
account of the loss suffered by Mexico in it, butl be-
cause it rests one considerations dictated by reason
and justice which would militate at all times as re-
gards the most friendly power in the midst of the
relations of the most intimate friendship.
" The other alterations which your Excellency will
find in our counter project are of less importance,
and we think that there will not be against them any
important objection. On the subject of the alteration
contained in the 12th article, it has already been
spoken of in your Excellency's country ; and we
flatter ourselves that the loyalty of your Government
will not refuse to contract an engagement so in ac-
cordance with the probity and good understanding
which ought to exist between two neighbouring
nations.

" The peace between the two countries will be more
firmly established, if a friendly Power (England)
who has so nobly offered her good offices to both
Mexico and the United States in the present war,
would lend herself to give her guarantee for the faith-
ful observance of the treaty which may be concluded.
The Government of Mexico thinks that it would be
very convenient to solicit that guarantee.
" Our Government has ordered us to recommend
to your Excellency to communicate to us your reso-
lution on the counter project, which we have the
honour to present to you, in the space of three days.
" The good and salutary work of peace cannot, in
ourjudgment, be brought to a happy conclusions
unless each of
the contending parties resolved to
abandon some of its original pretensions. This has
always happened, and every nation has not hesitated,
in similar cases, to make great sacrifices to appease the
desolating flame of war. Mexico and the United States
have particular reasons to act thus. It is not without
shame that we are obliged to confess that we are
giving to the world the scandal of two Christian
nations, of two republics, in the sight of all the
monarchies, who are mutually doing to each other all
the evil in their power for disputes on limits, when
we have more land than is necessary to. populate and
cultivate in the beautiful hemisphere in which Pro-
vidence first made us see the light. We venture to
recommend these consideration: to your Excellency
before you take a definitive resolution on our pro-
posals. .
" We have the honour to offer on this occasion to
your Excellency the considerations of our attention
and respect.
o BERNARDO COUTO.
" IGNACIO DE MORA Y VILLAMIL.
" JOSE I. DE HERRERA.
" MIGUEL ATRISTAIN."

STAG HUNTING,--The 11011. Newton Fellowes has
signified his intention to discontinue the management of
the Devon and Somerset staghounds after the present
season. It is intended to hold a meeting at Dulverton
on Thursday next, for the purpose of concerting
measures to keep up the hunt, and to place the manage•
ment on a permanent basis. The advanced age of Mr.
Fellowes is the reason for his retirement.—West Briton.
SOUTII WALES RAILWAY.—A rumour having been
circulated that several thousand men are about to be
withdrawn from the works in this line, we beg to con-
tradict the report, and can state upon good authority
that it is only on a portion of the line, where the con-
tractors have been unable to obtain sufficient land to
commence operations upon, that men have been shifted
to other contracts. With the exception of contract 16
no orders have been received to slacken the works, but 1
of necessity the contracts will not proceed with SO much
rapidity during the winter months.—Welshman.

LAW INTELLIGENCE,
BAIL COURT, Nov 6.

STANGE PROCEEDINGS AGAINST AN INSOLVENT,

PARKER V. BAILEY

Mr. CnARNOcK applied to the Court for a rule to
show cause why the defendant, who had been arrested
on a writ of capias ad satisfaciendem, should not be
discharged out of custody on the ground of irregula-
rity. In June, 1844, the defendant was taken into
custody on this writ, and he immediately filed aipetiti on
in accordance with the sth and 6th and 7th and Bth
Vict., chapters 116 and 78 and 96, in order that he
might obtain his discharge from custody and protec-
tion. The Commissioner discharged him, granted
him his interim order, and appointed the 16th of
October for him to come up to receive his final order;
he was consequently discharged on the 9th of Sep-
tember in the same year, after having been in con-
finement from June until that day. Prior to the
16th an agreement was entered into by the defendant
with his creditors, by which they were to receive 20s.
in the pound, he agreeing to pay Si. per month for
the first six months of the ensuing year, and
101. subsequently into the hands of the official
assignee, until all their claims were dis-
charged. This was explained to the Commissioner
when he came up, and as all the creditors, save one,
assented to his proposition, the Court seeing that he
was at large, and that his creditors were satisfied, dis-
missed his petition. However, from some cause, he
was not able to complete this arrangement ; and on
the 28th of September last the plaintiff issued a fresh
writ on the same judgment, and the defendant was
taken into custody. His first objection to the pro-
ceeding was that the proceedings with respect to the
first writ ought to have been fulfilled. Then there
was no return made to the first writ that he had been
arrested upon it, and this was a fresh writ without
any statement that the process was a fresh one. He
eontended, therefore, that the scire facias was wrong,
inasmuch as it ought to have contained a recital of
the former proceeding. Then the Court held that a
man could not be taken twice on the same judgment ;
even it had been held that a man who had been
arrested, and liberated, on his making an arrange •
ment with his creditors, or in default to consent to be
again arrested, could not thereby be bound; and
surely a similar rule would apply to this case.—Rule
granted.

horse in the sergeant's care, and showed it to the
veterinary surgeon, who is appointed inspector of the
horse market.

Mr. Nice, the surgeon, deposed that the disease was
contagious, and communicable to man. It was a de-
cided case of glanders of long standing.
Hodges, a policeman, proved that the horse had
been standing tied up to the rail twenty minutes before
it was removed.

The defendant pid he only intended to sell it for
killing. Ile sent for Atchelor, but he did not come
for it, and he then sent for Cross, another. knacker.
He kept it quite away from the other horses.
Mr. Alderman MooN said he had no right to bring
horses affected with a virulent contagious disease into
any part of a public cattle-market. It was impossible
to say what mischief might ensue from the act he had
committed. If he meant to sell the horse to. Atchelor
or Cross, he might have led it to their premises in-
stead of into Smithfield. lle would endeavour to
stop this dangerous practice, by requiring the de-
fendant to find bail to answer for the misdemeanour
at the sessions, and direct the City Solicitor to prose-
cute him.

In default of sureties the defendant was committed.

CITY POLICE COMMITTEE.

Mr. H3nry Greenall, the landlord of the Britannia
public-house, Britannia-place, Bishopsgate, was
summoned before Aldermen Wilson and Johnson,
under the Ath of George IV., cap. 61, for unlawfully
permitting and suffering disorderly conduct in his
house, contrary to the tenour of his license.
Mr. Duncombe attended for the defendant.

Jarvis, City police-constable, deposed that at ten in
the forenoon, on Sunday, the 24th ult., he was placed
to watch the defendant's house. Saw some men enter.
At his sergeant's direction he left for a short time.
Returned at half-past twelve o'clock, and at the usual
opening hour, one o'clock, the landlord opened the
door, and two or three minutes afterwards nine men
came out. They were quarrelsome.
Mr. Duncombe—Why didn't you go in at twelve
o'clock ? Witness—Because I understood an officer
in private clothes had been in previously.
Mr. Duncombe Now can you swear that the
men you saw leave the house after one were the same
as were in at twelve ? Witness—No, I cannot.
John Fleury, a City officer, deposed that, in pri-
vate clothes, he went into defendant's house at five
minutes past one on the day in question. Four men
were in front of the bar.
By Mr. Duncombe—The men I saw in the house
might have gone in between one and five minutes
past one. _ _

- Mr. Alderman WILSON, after consulting Mr.
Alderman Johnson, said they were of opinion that
the information must be dismissed. With his brother
Alderman, he thought the police had not acted with
that judment in the matter which they might have
done. Why had they not brought the officer who was
in the house before twelve, as they had stated ?