The Sun.
London, England, 1847-10-20 00:00:00

THE MONEY PRESSURE.

__-
THE BANKS AND THEIR DEPOSITORS.
:From the Second Edition of the Liverpool Standard
of yesterday.)

Standard Office, Half-past Two, P.M.
We have no new disasters to record as having
taken place this day, if we except the fact that the
Liverpool Banking Company have solicited from their
depositors their forbearance for a few days, until the
severity of the present pressure is overcome. We
are not, however, aware of any parties being refused
payment when insisted upon. The feeling amongst
merchants and other classes continues in a very
feverish state, and rumour is busy with her hundred
tongues. Nothing definite has yet been arranged
with respect to the relief of the Royal Bank, whose
stoppage we announced this morning, from its pre-
sent state of inactivity. Expectations, however, are
still entertained that some assistance will be rendered
to it, btit on what terms, or in what shape, has not
transpired.

We learn that very great exaggerations are abroad
with respect to the position of this concern. A
local Contemporary, after referring to a rumour that
one house has been accommodated to the extent of
400,0001., and that two other houses have had between
them an amount which makes up in all nearly a
million of the capital of the bank, states, that whilst
giving such great facilities to these three houses, "no
extreme liberality has characterised its proceedings
among men in ordinary business." We are assured,
on good authority, in the first
place, that the ac-
counts of the parties referred to are greatly overstated,
and it must be borne in mind, that although the true
amount appears excessive, it is based upon the best
security. With respect to the charge of neglecting
men of ordinary business, we are authorised to state
that the Royal Bank has
been ever ready to assist,
as far as applied to, the whole mercantile community ;
and in many instances it has even extended itsassistance to the constituents of some other banking-
houses.

t o farmerr theirwas
not
We regret to observe symptoms of a movement
taking place which, if persevered in, must still fur-
ther increase the difficulties which surround commer
cial men. We refer to the demands which are being
made upon certain banks by depositors, who have
taken alarm for the safety of their deposits. It
most important that this feeling should be allayed ;
and we would earnestly impress upon our readers and
the well-informed portion of the public, to do every-
thing in their power to allay the apprehensions of the
few timid people who are making such mischief.
These parties should be reminded that the banking
interest of the country is now in a very different
position to that which it occupied in the disastrous
crises of 1816 and 1825, in the latter of which years
t
are
banks
5
failed,s.
and the average dividend paid
did
in the pound. The majority of our
banks conducted on the joint-stock principle,
seventy
nonow
exceed
liable in case of the bank not meeting its engage-
ments. It t ist a fact every proprietor is
go fa
in st the recollection
o
Ic ht the whole
to prop
be er
set ty 8
of private banks, issu-
ing not been as yet
J, iii
paid in full, with interest. Moreover, in
instanceo fow losses
aiz
i7loo it)sy, s
thatitohcei failure
fth oe ir lei n
Which every depo
s
the few cases of suspension, the depositors have been
paid first.

With respect to the present position of the bank,
of Liverpool, we are certain that the depositors need
be under no apprehension. It is well known that our
three private banks are full of money, having prepared
themselves beforehand for the possibility of a contin-
gencyreaalso fors
months
l i k e t h
p present.
past
s tbeen restricting
their operations,
and providing themselves with cash to meet any sud-
den demand upon them. We have authenticated in
formation of one, which, if necessary is prepared to,
pay back the whole of.its depositors' money to-day;
and we have little doubt that others are, if not alto-
gether, at least nearly as well situated.
There can be no doubt of Ow fact, that the restric-
tive efforts which the banks have had to make to
place themselves in this position have seriously in-
creased the pressure on the public and the embarrass-
ment of our commerce. Each establishment has been
placed under the necessity of keeping a large mass of
capital locked up and idle, instead of its being circu-
lated in the ordinary channels of business. Only let
those for the payment cif whose claims this hoarding
system has had to be practised—the depositors, throw
away their absurd fears, and manifest more confi-
dence, and the motry, at present withdrawn from
trade, will be brought out, and the commercial ener-
gies of the country receive new life, and assume their
usual healthy action.

Alboni has left Paris for Pesth, in Hungary ;
she will return to Paris in February next, as she is en-
gaged for a month at the Opera.