The Sun.
London, England, 1866-05-12 00:00:00

FRANCE.

BOURSE, May 11, Two o'clock.—The Bank of
France—adopting the precautionary menureg, al-

ready taken by other countries—has just raised its
rate of discount to four per cent., and to four-and-
a-half per cent. for loans. This announcement,
however, in the presence of rumours more or less
credited that efforts are being made by the Euro-
pean Powers for the peaceful solution of the Ger-
man difficulty, has hitherto had no adverse effect on
the market, which exhibits an improved feeling at
somewhat better rates. Threes, for the Account,
have advanced 30c. to 63fr. 20c. Italian Fives,
very low at the opening, have advanced to 38fr.,
showing a rise of one-half per cent. Credit Mobi-
lier Shares have improved Bfr. 75c., the price now
being at 532 fr. 50c. Credit Fonder, however, still
lose Mr., at 1,090 fr. A better tone also pervades
the Railway Department. Lyons have advanced
sfr. to 790 fr., and Austrian and Lombard gain
2fr. 50c. each. Northern Shares are unchanged at
1,040 fr. English Consols are telegraphed with a
decline of

Three o'clock.—The second despatch from Lon-
don announces a further fall of iin Consols. The
market here continued to improve to the close, the
following being the last quotations

4i per Cents 9O
Do. end month —
3 per Cents. 64 25
Do. end month 63 85
Credit Mobilier
Do. end month
Unis —
Do. end month —

RAIL"

Bank Shares 3445
Italian Loan 4O
Do. end month 39 25
Mexican Loan —
Do. Bonds —
Spanish Threes
Home Debt —
Deferred

WAYS.

For Account,
Orleans 795
Northern lO5O
Lyons and Mediterranean 795
Southern 525
Western 530
Eastern 490
Sardinian
Austrian

Lombard 297 50
North of Spain l2O
Saragossa 165
Ditto to Barcelona..
Roman

The Panic in the City.

P

57 50

In the city this morning there is a manifest abate-
ment of the panic. No additional failures have
been made public, and the banking quarters, which
were so crowded throughout the whole of yesterday,
had began to assume their wonted quietude. This
is especially the case in Lombard-street, Birchin-
line, and Bartholomew-lane, where most of the
intense excitement of yesterday had prevailed.

The action of the Government in suspending the
operation of the Bank Charter Act appears greatly
to have allayed the general anxiety and apprehen-
sion, so far as can yet be ascertained, and we may
hope that the crisis has reached its worst point.
The Directors of the Bank of England have this
day raised their rate of discount from 9 to 10 per
cent. -

It was generally expected in the course of yester-
day that the suspension of Messrs. Peto and Betts
would have to be made public. When, therefore,
it was intimated it occasioned no surprise. There
were, however, at the same time deep expressions of
sympathy for the partners. The suspension of
Overend, Gurney, and Co., and the gradual liqui-
dation of the Imperial Mercantile Credit Associa-
tion, have impeded the financial arrangements of
the firm, and consequently it has very wisely been
determined to arrange for a temporary stoppage.
A private meeting of the friends of Sir S. Morton
Peto took place to-day, when subscriptions were
offered to the extent of £500,000 on his behalf, to
assist him through his difficulty, but they were
declined, because it was not thought advisable to
proceed in the existing state of affairs. The debts
and liabilities, it is stated, are about £4,000,000, of
which about £3,800,000, are amply secured, with
margins, and the remaining £200,000 represent
acceptances and accounts for current supplies. It
is asserted that all the works which the firm con-
tracted for are in a very forward state, and that
arrangements will be at once made for their due
completion. In England nearly all the contracts
have been undertaken jointly with other powerful
contractors ; the progress of these works will, there-
fore, not be interfered with.
9, Great George-steeet, Westminster, May 11.
We much regret to find ourselves under the painful
necessity of allowing our acceptances to be returned owing
wholly to the disappointment of the arrangements we had
made for their provision, which have been defeated by the
unexpected turn which has taken place in the money mar-
ket within the last few days. We have considered it to be
the most expedient course in the interst of all parties that
for the present we should make no further payments, and
await the subsidence of the financial panic now prevailing;
but we are enabled to state that having submitted a state-
ment of our affairs to Mr. J. E. Coleman so lately as the
23d of last month, we then possessed a clear balance of
upwards of £1,000,000, estimating our various properties
at their then depreciated value. Our position now Is but
slightly changed, and we have, therefore, only to solicit
forbearance on the part of those who hold our engage-
ments ; and we trust in a very short time to submit
through Messrs. Coleman, Turquand, and Co., a satisfac-
tory proposal for the adjustment and discharge of all our
liabilities.—We remain your obedient servants,

PETO and BETTS.

Another railway contractor failed to-day, viz.,
Mr. W. Shrimpton, of Westminster, whose liabili-
ties exceed £200,000. The assets will depend upon
realisatiOn. The accounts have been placed in the
hands of Mr. Wm. Moates.

As showing the position which some of the finan-
cial companies have assumed, notwithstanding the
attempts of the operators for the fall to create an
impression that they are all unsound, the following
notice has been issued by the International Finan-
cial Society (Limited) :
International Financial Society (Limited)
60, Threadneedle-street, London, May 11, 1866.
The directors give notice that all acceptances of this
society will be paid under discount at the Bank of England
rate if presented within one week from this date.
By order,

(Signed) W. A. MICHAEL, Secretary.
Towards the close of the afternoon it was an-
nounced, in regular form, that the English Joint
Stock Bank (Limited) had suspended payment. The
establishment possessed thirty branches, and the
debts and liabilities represent about £BOO,OOO, the
assets being quite equal to the amount. The bank
was established in March, 1864, having previously
been the South-Eastern Banking Company, and
later it absorbed the business and premises of
Messrs. Rogers, Olding, and Co. It has paid a
dividend at the rate of 6 per cent., and the reserve
fund was last stated at £6,000. The London and
County Bank rendered them a day or two ago a
little temporary assistance, and this morning several
accounts came to the establishment. 'the following
is the circular issued to the shareholders :
English Joint-stock Bank (Limited),, •
29, Clement's-lane, London, E.C., May 11, 1866.

Sir,—ln consequence of the severe monetary crisis the
directors regret to announce that they have found•it neces-
sary to suspend payment. This step has been taken, after
due deliberation, as being the most conducive to the inte-
rest of all parties. Messrs. Kemp, Carman, Ford, and Co.
are engaged in preparing a statement of affairs, to be laid
before the shareholders at the earliest possible date.
I am, sir, &c.,

W. WALTER, Secretary.
Although this announcement has been sent out, it
appears, endeavours will he made to resuscitate the
business, and by the annexed circular it will be per-
ceived a meeting is to be held at the London Tavern
on Monday next for this purpose :-
29, Clement's-lane, Lombard-street, London, E.C.
May 11, 1866.

Sir, —ln compliance with the desire of several large
shareholders, a meeting will be held at the London Tavern,
Bishopsgate-street, on Monday next, the 14th inst., at one
o'clock, to consider what steps shall bo taken to enable the
bank to resume business.—l am, sir, &c.,
W. WALTER, Secretary.

The excitement in the City yesterday, consequent
on the monetary crisis, was almost indescribable.
There has probably been nothing like it within living
memory. Certainly that which prevailed during
the last panic of the kind, in the autumn of 1857,
when the Western Bank of Scotland and four other
great provincial banks stopped payment, with a
great number of private firms, was not equal to the
feeling of anxiety and suspense which yesterday
appeared everywhere to exist. We are referring
now only to the out-of-door symptoms, and the
general appearance of the streets, especially in the
banking quarters of the city. From about 10 o'clock
in the morning, by which time the failure of Messrs.
0 verend, Gurney, and Co. had become widely
known, there was a marked influx of people, far

o
beyond the ordinary community of business men
all classes, and in Lombard-street, Birchin-lan:
and the neighbourhood of the Royal Exchange, reste
less crowds were collected during the whole
For some hours in the height of the clay Lombarc,i_
•
street and Birchin-lane, from both of which the
an
premises of Overend, Gurney, and Co. have an
entrance, were all but impassable, and the services
of an additional body of policemen were brought
into requisition to facilitate the traffic and to 113 a!n.
tain order. The prevailing excitement greatly 4
creased when it became known that the 17,13g1,
Joint Stock Bank in Clement's-lane, had temporarti;y,
suspended paymept. In Bartholomew's
bury, and Princes-street, there was also an uhus,
bustle throughout the day. Altogether, for
reasons, the occasion and the day will probably
the:
long remembered in the city of London ,as
Black Friday. ; ted on
-lane, Loual
At Liverool the alarm which had existed on
'Change fors ome days reached a climax yesterday
on the confirmed announcement of 0 verend, G urneT,
and Co.'s suspension. Rumours of difficulties
local mercantile circles and the advance of the r
ate
of discount added to the excitement. The effectbose
on
the cotton market was not so severe as might . ose
been anticipated, but in the share market business
was perfectly paralysed, and one or two temper 7
suspensions were announced. The suggestion of
the City Article of the Times that a deputation
Chancellors
leading firms should wait upon the Cha
the Exchequer with a request for relief led to
and
hope that such a course should be adopted, f
to
when the news arrived for the suspension °ine.
Bank Act it was received with cheers. The I—,-
diate effect of this intelligence was to restore cone
fidence, and at the close of business a much rno
cheerful tone prevailed. During the day five orhafe
London banks were positively reported te non
shut their doors, and this occasioned a slight run
one one or two of the local establishments,
however, promptly met. &sea
At Manchester the market was perfectly Par- •
e of
yesterday morning, owing to the intelligen •ro
Overend, Gurney, and Co. having suspended' I dccl
the later news of the afternoon, both as regar,
rumoured assistance to Messrs. Overend andi
co
ie
and of extended powers to the Bank of Eng anpie
there was a considerable recovery, and PA4O-
breathed more freely, though there was little "Tiers
sition to do business. -In shipping yarns the Ordea
making yesterday morning could only be regntheo
as ridiculous, buyers in some cases basing and
upon cotton as low as 9d. per lb. Spinners nnd
such circumstances did not attempt business'theit
many of them thought it advisable to withdravi jet
stocks. Very little disposition was shown, if r the
either by buyers or sellers to do business unueote-
panic feeling of the hour. In the afternoon nl"
tions advanced to the point they were at on the
vious day, but nothing doing, and much u—,nore
prevailed. In home trade yarns there was ratheriroo
disposition to operate, and prices had recovered riot
the great fall of the morning. In the cloth-ma
in the morning the panic feeling was quite as stuterr
as in any branch of business. Some manufset hat
were willing to make considerable concessions,
any
buyers were indisposed to purchase almost en 00
reasonable terms. Business closed in the byea 00
with more confidence, though there had
business of any moment throughout the day' over•
In consequence of the stoppage of Messrsv.
end, Gurney, and Co., the bank of the "--,vralli
Joint-stock Bank Company (Limited), gen-heio,
known as Hart and Fellowes' Bank,
yesterday morning temporarily suspended 1331,,,131110
The intelligence of the suspension in Londeciier
received at Norwich on Thursday evening, an Di
terday morning the following notice was Pes
Messrs. Gurney and Co., of Norwich :—" rfhtreeers.
in the money market having compelled rnndont
Overend, Gurney, and Co. (Limited), a beg
to suspend payment, Messrs. Gurney and
to inform their friends that their firm is 11°i:4 ari'
for the above-named company, and that tij„-W
not in any way affected thereby._Norwie"' 010
11." A little later in the day an amended.: the
Notting
elit,
appeared in these terms :—" The Paui°:erena,'
money market having compelled Messrs. eva
Gurney, and Co. (Limited), of London, to s'lool
payment, Messrs. Gurney and Co. beg tc);00 of"
their friends that their firm is not in any
„:otl3B
fected by such stoppage." Yesterday afters of
mayor (Mr. W. P. Nichols) convened a rneet'l3fer
the citizens at the Guildhall, for the purpose °„
pressing entire confidence in the Norwich b°11—;(14
The announcement received at Derby Yesd sor
morning that Overend, Gurney, and Co. ha there
pended payment caused a great sensation, as fin.
are a great many holders of their stock in the Stead
The panic was increased when, at 9 o'clockl4.—soc
of the Derby branch of the English Joint:
ss
Bank Companysee
ot
(Limited) opening its prey/
usual, the following notice was posted O' thiear the
fo
door :—" This bank has stopped paylnentt—sharr
present." As there are a great number 01 oho
holders in Derby, the excitement throng
ova
day /1 sr!
has been very great. All sorts of 111111,°,41 (3'
afloat, but it is hoped that the great tukl°-
them are exaggerated. e
cioA
At Bristol yesterday morning, at 10
notice was exhibited at the Bristol branch, -10,01
English Banking Company stating that tune en'
had
temporarily suspended payment. 511100
nouncement, of course, created great exelfieeto3'
and consternation, but was not wholly lint other
Something like a run took place on one of the coo;
joint-stock banks in the city, but no want,„°blislie"
fidence was displayed in the other old of of tile
concerns. Many instances are mentioned v oat
good and ill fortune of depositors who ed,l;e:ebasi;
and paid in within the last day or two 0I '-1,0100.7
ness of the English Joint-Stock Banking C°-
being carried on.