The Sun.
London, England, 1857-11-13 00:00:00

"3. That the holders of bills bearing the liability of
the bank shall be entitled, if they require it, to the pre
missory notes of the bank for the amount of their unpaid
bills for the time being, or such part thereof as they shall
require, such promissory notes to mature at 6, 12, 18,
and 24 m from the said 27th day of Octob-r, in
equal ini-talinents of ss. in the pound each, with interest
at 71. per cent. per annum, to be competed from the
maturity of the bills in respect of which such notes are
given. The bank is to have the right of redeeming such
promissory notes before the same become due in whole,
or in sums of not less than ls. in the pound, on giving
notice the holders of their desire so to do, on condition
that the unpaid bills fir which such promissory notes
shell be-given shall be delivered to the bank upon trust
for the benefit of the parties delivering tfii same and in.
order that the bank as their agent may collect the
amount thereof from the other parties thereto, but not
so as to divest the legal property of the holders in such
bills, such collection to be made by the bank to the best
of their judgment, and all sums of money collected by
the bank from the other parties to such bills shall be
immediately applied in liquidation of the promissory
notes given by the bank in lieu of such bills which have
the longest time to ruo, the bank to be credited in ac-
count with the hollers of such notes with interest at the
rate of 71. Or cent, per annum on the moneys so paid,
and the holders of the bills are to have the right of re•
quiring the re-delivery of such bills, or any of them, on
returning to the bank their promissory notes received
against them ; but the bills so re-delivered are to be
subject to such arrangements as the bank may have made
in the meantime with the parties liable thereon.
"4. That shareholders who are creditors upon deposit,
on open account, are not to receive the amount of their
credit until all their liabilities to the bank and the bank's
liabilities to the public have been liquidated.
" 5. That depositors and other creditors having hills
running with the bank under discount are not to receive
promissory notes for the sums due them until the bank
is satisfied of the safety of such bills.
"6. Tnat the acceptances of the bank given out against
credits are to be paid at maturity if the liquidators shall
deem it safe and advastageous to the bank to do so,
" 7. That upon the realisation by the bank of any re-
eurities deposited with the bank against any particular
bill or bills the proceeds thereof shall be applied imme-
diately as received towards the liquidation of such bill
or bills; and in case of the bank having given their pro-
missory notes against such bill or bills to the holders
thereof, then the proceeds shall be applie i towards such
of the said promissory notes than current as shall have
the shortest time to run.

" 8, That dividends and interest shall be paid to the
holders of bills who may be entitled to promissory notes
but who may not require the same, or who may have
returned their promissory notes to the bank in like man-
ner as if such notes had not been given or hal not been
returned.

" 9. That the chief basis of the settlement with the
creditors of the bank hereby authorised is, that calls
amounting to 51. per share shall be made on the share-
holders as soon as the law will permit, and shall be en-
forced with all re-isonable speed.
"10 That in passing this resolution the shareholders
reserve to the liquidators the pwer to exclude any
creditor who shall not signify his assent to the settlement
hereby authorised by a day to be fixed by the liquidators
and by the creditors counnitt,es from receiving a higher
rate of interest than the law would award.

" 15. That this meeting request the creditors of the
bank to continue the present or some other committee
to represent them during the winding up of the affairs
of the hank.

" 16. That, inasmuch as interest at the rate of 7/. pr
cent, per annum is to be allowed to the crerlitois of the
bank, the like rate of interest shall be adopted in the
settlement of all amounts between the shareholders and
the bank, and shall be computed from the 27th October,
1857. All balances doe to or from any shareholder on
banking account are to be transferred as of the afore-
said day to his shareholder's account, and to be dealt
with accordingly."

THE MONEY CRISIS.

(From the Times' City Article)

The Bank Charter Act is abrogated. Its fate at
the second time of trial has been the same as at the
first. The English Government have resorted to
the notification that the Bank are authorised to ex-
tend their issues on approved securities without
regard to the amount of bullion in their vaults, at
a rate of not less than 10 per cent.
Although the announcement will give immense
relief from fears which were rapidly spreading,
there can scarcely be an Englishman who will not
receive it with deep regret from the humiliation
it involves. It must have resulted from one of two
causes—either blind fright or an inherently un-
healthy condition of business which prevented cur
merchants from sustaining themselves against a
rate of discount such as is borne at Paris, Hamburg,
and a number of other centres of commerce. In
either case the conclusion is equslly lowering to our
fame as a mercantile nation. It is satisfactory t'3
believe that the measure was neither asked for nor
recommended by the Directors of the Bank of
England, or any delegated representatives of the
leading mercantile or banking firms. At the same
time, in justice to the Government, it must be ad-.
witted that the period had obviously arrived when
protective steps of some kind had become absolutely
necessary. The position of the Bank of England
and the private banks was never one of higher con-
fidence, but the apprehension was evident on all
sides that a withdrawal of deposits from the dis-
count houses and joint-stock banks might com-
mence at any instant and totally cripple their
power to continue further accommodation ; that
the Bank of England, from the point to which their
reserve has been brought by the sudden sweeping
away of nearly two millions of gold far Ireland and
Scotland, could in such case afford no adequat3
help, and come quently that if a resistless panic was
not to be considered as having actually_commenced,
we were in a position in which no one would calcu-
late on its being kept off even for a single hour.
But there were remedies available other than
that of breaking and destroying the law—for a law
which has been condemned on each occasion of trial
must be looked upon as destroyed. The state to
which we had come had not been brought about by
any fault of the Government or of the community
at large, and it was for those who had occasioned
it to find their own means of extrication. They
did not look about for those means, because they
knew they could obtain relief elsewhere. If this
conviction animated them they would long before
the present week have concerted measures for de-
fence. The whole history of our situation is plain.
For years past certain provincial joint-stock banks
have gambled to an incredible amount by means
of what are termed re-discounts—that is, with a
limited cspital they have granted accommodation
to an almost unlimited extent, sending the large
proportion of the bills thus negotiated •to' the dis-
count establishments in London, who, in turn,
discount them for the joint-stock bank on the
strength chiefly of the indorsement of such bank,
and not upon any careful estimate of the responsi-
bility of the drawers or acceptors, or the legiti-
mate character of the transactions they represent.
" Of course we are safe with the indorsement
of the Liverpool Borough Bank," is the cry. "The
character of the business may be doubtful, but its
shareholders are all liable to their last farthing."
Again, " Why should we hesitate with the Western
Bank of Scotland ? Among its proprietary aro two
or three names which are alone good for as many
millions." But how is the money obtained which
is thus freely granted by the London houses I The
security relied upon is the ultimate responsibility
of a certain number of shareholders scattered over
a large district, and which, so far from having any-
thing iu common with a sound banking security,
is wholly unavailable in emergencies, and can never
be realised except through protracted lezal pro-
cesses ; but the money advanced consists of deposits
lodged for the most part at call with the dis-
count houses, or at notice ranging perhaps to a
month with the joint-stock banks. Here, then, is
a deliberate breach of every recognised banking
principle, and it is one that on each occasion of
trouble has led to the earns results. The London
money-dealers cannot have been insensible to the
peril ; but their practice is to carry on the system
until its inevitable consequences develop them-