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, but 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 housh 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 its
assistance to the constituents of some other banking-
houses.

We regret
increase the di
We ref
for th
made
oebr
most important that this taking placeryavnekssybmyptoms of a movement
which, if persevered in, must still fur-
therand we would earneffiss
men.
shouldarbee
tcbtelubliatiefsee:idnigichshsuourrlodunbde commer-
cialallayed;
to the demands which are being
the well-informed depositors, who have
taken alarm
safety of their deposits. It is
in their
few timid people who impress upon our readers and
portion of the public, to do every-
thing Power to allay the apprehensions of the
dgesduihhatmtihseehibeanking
These parties
interest of the making
country •
position to that Which y.is now. in a very different
it occupied in the disastrous
crises of 1816 and 1825, in the latter of which years
seventy banks failed,
did not exceed ss. in
thepound. . The majority of our
banks now are conducted
by which the whole ed on the Joint-stock principle,
liable in case of the property of every proprietor is
not meeting its engage-
ments. It is a fact to be set
against the recollection
of former losses by the failure
issu-
ing their own notes, that thereof
private banks,
has . not been as yet an
instance of a joint•stoch failing, in which every depo-
sitor was not paid in full, With interest. nterest. Moreover, in
ai the few cases of suspension, e depositors have been
paid first.
With respect to the present
that Position of the banks
of Liverpool, we are certainthe 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-
gency like the present. Our joint-stock banks have
also for months past been 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 the 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 of whose claims this hoarding
system has had to be practised—the depositors, throw
away their absurd fears, and manifest more confi-
dence, and the money, 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.

iy
Paris in
Opera. February
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