The Sun.
London, England, 1841-08-13 00:00:00

MONEY MARKET and CITY NEWS.

FROM THE MORNING PAPERS OF THIS DAY.

TIMES.—The prices of the English StoCks have not
materially fluctuated to-day, but the very changeable
state of the weather continues to hare an unfavourable
influence over the markets in general. The demand foe
money at the Stock Exchange is not at all extensive,
but in the discount world it is said to be increasing, and
to such an extent that for lodgments the brokers allow
the rate of 4 per cent. It does not, however, follow that
there is any great embarrassment in the commercial
circles, and, from all that can be learned, it is more a
temporary demand than otherwise. •
ADERTISER.—Besides the Germans, the Dutch also
begin to have well-founded apprehensions respecting the
probable effect of a Union, or Commercial League, be-
tween Belgium and France. Experience doubtless justi.;
fies these fears, for we all know that the patromge and
alliance of a great power with a small one must be
granted by the former for the ulterior object of its
own benefit or aggrandizement. In the present in-
stance we may take it for granted that the object
contemplated is purely commercial, that it has ..no
political tendency, and yet allowing even this, which
is fur more than examination will justify, we still per,
ceive, in the contemplated league, much that is likely to
affect the trade of, this country, as well as that of 'the Con-
tinent. • The-French require an extension of the market
foi: the produce of their Colonial possessions. The Bel-
gians want an opening in these colonies for their manu-
factures. By a union it is supposed these objects can be
obtained, and such stipulations be made at the same
time as to satisfy all parties. We do not ourselves augur
from such an alliance all the splendid advantages repre-
sented as being likely to accrue from it, but we see clearly.
that it will be another link in the chain of exclusion and
monopoly, of which this country has hitherto held up so
long a proportion. With Prussia and its German allies
on the one hand, France and its " little adopted" on the
other, the United States and its threatened tariff ap-
proaching, and the Brazils perhaps not far behind, it
must be owned that we have a highly favourable prospect
for the extension of our foreign trade, by retaining our
venerated and admirable code of fiscal faws.
CHRONICLE.—The recent meeting of the share-
holders of the Marylebone Bank shows that there is much
room for improvement in the system of Joint-Stock
Banks in England, not only in regard to the management
itself; for the safety of the shareholders, but in regard to
the available capital for the safety of the public. Had the
Marylebone Bank been a bank of issue, it is plain enough
that the noteholders must have been exposed to risk, for
the liabilities amounted to 30,0001., while the immediate
assets were only 11,000/. ; and it seems doubtful whether
the other means outstanding will ultimately cover the de-
ficiency of 19,0001. Men of standing and reputation
should never have allowed their names to appear as direc-
tors in such a paltry concern. The conduct of the di-
rectors exposes them to the charge of great ladies and
neglect. The account of Hannay, the managing
director, could not have been overdrawn to the
extent of one farthing if they had exercised due
vigilance ; much less could the over drafts have
been of long standing, and to the amount of
16,0001. The interests of the shareholders have
been very grossly abused in this case, and may be,
and have been equally neglected in the same way in
other Joint-Stock Banks. Much of the same species of
mallersation appears in the affairs of the Marylebone
Bank, as were lately brought to light in those of the
Bank of the United States, although of far less amount
and of lesser moral impropriety in the former than in
the latter case. In the case of the Bank of the United
States, the Directors and executive officers loaned the
money of the Bank for their own use, and repaid the
amount by State Stocks at par, which they picked up
in the Stock Market at heavy discounts to suit their
purposes. In the case of the Marylebone Bank, Mr.
Hannay had entire and uncontrolled authority to do
just as he pleased with the funds, and it is stated by a
Contemporary that each director had an allowance of a
large number of shares, with liberty to sell them if at a
premium, and on the express understanding that the
Bank was to redeem them at par in the event of a con-
trary movement. The directors had thus a snug thing
of it, if the shares rose to a premium, and were free
from all loss, whatever might be their value in the
market. This is most objectionable practice, and ought
to attract the attention of Parliament to the de-
fective state of the laws relating to joint stock
banking. The unlimited confidence placed in the
managing director, in the case of the Marylebone Bank,
points out the inefficiency a general board of directors,
and the expediency of appointing a special committee of
directors, in all Joint-stock Banks, who should be al-
lowed a fair remuneration, and give their sole time and
attention to the affairs of their employers. It is impos-
sible that gentlemen who come to the Board-room only
for an hour or two once or twice a week, can have that
knowledge of the business of the Bank to which they be-
long which is necessary to enable them to keep the
machinery in safe and wholesome action, and to main-
tain a proper superintendence and check upon the con-
duct of the executive officers. While they only attend
these weekly meetings in the Board-room, they merely
give their voice on the business that may be brought
before them, which is prepared by, and must depend
upon, the will and disposition of the paid officers of the
Bank. These are often most able, trustworthy, and in-
telligent men, but they are not always so, as the cases
of the Marylebone Bank, and that of the Bank of the
United States awl others, prove most clearly. To pre-
vent a recurrence of such exposures as have taken place
in these institutions, a standing committee of directors
should attend daily and apply their sole time and at-
tention to the management.
HERALD.—On referring to the annual report of the
treasury department at Washington, as laid before Con-
gress, on the banking concerns of the Union, it must
excite no little astonishment to find how the insolvent
banks contrive to "rub on" in the midst of difficulties,
disasters and disgraces of all sorts, with rag dollar paper
everywhere depreciated, and at large discounts, with
deposits and specie decreasing, with capitals cut clown
in most cases, or entirely squandered, that is, where
any were ever started with in hard cash, yet with rag
dollar circulation again on the increase. The New
York and Boston specie paying banks are not of
course included within this category of fraudulentjoint-
stock bank traders. The returns embrace a view of
the business affairs of the banks of the Union sepa-
rately and in the aggregate, although it is stated they
are not to be depended upon as entirely satisfactory,
from the loose manner in which prepared, and ac-
counts kept by the banks themselves. They comprise
830 banks and branches, of which the monstrous num-
ber of 400 are in a state of suspension, never, it was
believed, to resume.

It appears from returns made up to January, 1841,
that the aggregate deposits in these banks fell from
127,300.000 dollars in 1837 to 72,800,000 in 1841, or
about 43 per cent., whilst the circulation was reduced
less than 17 per cent., and the discounts and loans
about 19 per cent. ; the specie between the same two
extreme points having decreased nearly 8 per cent. It
will be observed however that circulation was on the in-
crease in 1841 as compared with 1840 by nearly
18,000,000 dollars. It is clearly impossible, with such
notorious bank corruption and mismanagement, to guess
yet, with any approximate approach to precision, when
the end of monetary and commercial embarrassment may
be anticipated in the United States.
A decree has been issued by the Government of Peru
prohibiting any vessel touching at the smaller ports of
the republic under very heavy penalties. This decree
will bear with great hardship upon whalers and other
ships which may have been in the practice of calling at
the harbours most convenient for procuring fresh provi-
sions. It was to come into operation on the Ist of Fe-
bruary last, and inflicts the penalty of 1,000 dollars upon
the captain of any vessel, whether national or foreign,
if it touch at any of the minor ports or coves on the
coast, the vessel to be liable whether owned by the cap-
tain or others. If, moreover, it be proved that any per-
son, goods, or letters, have been landed from the vessel
at any port at which she may have thus touched, contrary
to the law, the vessel will be confiscated, and the cap-
tain
in addition will become liable to a criminal prosecu-
tion.
penalties under this decree being so heavy,
and the term " minor ports and coves" so vague, the
principal places ought surely to be enumerated, or a
fruitful field of endless litigation and annoyance is opened.
SUN.—The English Securities were again to. day with-
Out that feature of buoyancy which distinguished them a
week or two, back. Nevertheless, .they did not give way,
fewer sales having been effected. Consols realized 89*
to 891 forpresent transfer, and 89* to for the Account.
Exchequer Bills were 14s. to 16s. premium ; and East
India Bonds, 6s. to Bs. premium ; Bank Stock was at
167* to 168, and East India Stock at 248. The New
Three-and-a-Half per Cents. were at 98* to 4, and the
Three per Cents. 89* to Reduced Three-and-a-Ralf
per Cents. were 984 to
Most of the Foreign Stocks were to be had upon
easy terms. Active Spanish Bonds were 19- to ;
Portuguese New Five per Cents. were 30 to 294 ; the
Three per Cents. 178 ; Mexican 24, and Dutch Five
per Cents. 1021.
All the Railway Shares exhibited a downward tendency.
Great Western 'were 158 to l 4 ; the New 6to 6i pre-
mium ; the Fifths at 431 to 4i ; the Birmingham, 70
to 69 ; the Greenwich Scrip ; and the South
Western at 13* to 12k premium ; Brighton were 7to 7-*;
Blackwall 10, Croydon 1 s ; South Eastern 21 ; North
Midland 364- ; Bristol and Exeter 29i ; and Eastern
Counties 151 discount. Union Bank of Australia Shares
were 5:1 premium.

Lord Portman gave a dinner at Bryanston, on
the 3d of August, to his tenantry, and on that occasion
entered into a statement of his views upon the Corn-
laws. He stated, that having often told them that he
considered a fixed duty would give sufficient protection
to the agriculturists, and would be less injurious to all
the other interests in the empire than the sliding scale,
inasmuch as corn might become an article of regular
commerce, he need only tell them that every year's
experience since 1823 (when first he was obliged, as
31. P. for Dorset, to form an opinion) confirmed his
belief in the correctness of that opinion. Adverting,
however, to the recent elections, he' thought it. was
hopeless to attempt at present to enact an absolute fixed
;
duand, therefore, he would consent to some such
r
palliative as he had for several years contemplated, as
an improvement of the existing law, and as a mode of
testing the probable consequence of an absolute fixed
duty. His plan of palliation is to enact, that when
wheat is under 40s. the duty should be 20s. per quarter ;
when above 725. should be 2s. 6d., and when between
40s. and 725. should be 10s. But as a necessary part of
any new law, ho would amend the law relating to taking
the averages, on the plan proposed by him in the House
of Commons in 1828. He would omit London, Liver-
pool, Wakefield, and all towns not returning 5,000 quar-
ters in the year, from the average towns, and extend the
period of six weeks to three months. He thought the
present a peculiarly favourable time for adjusting the
Corn-law squabbles, because there is no glut of vorn
anywhere in the world to overwhelm the market iu an
unusual manner.