The Sun.
London, England, 1842-12-22 00:00:00

BANKING IN INDIA.

The effects of the banking system of this country
and America have excited much alarm in India,
which is threatened with a plethora of joint-stock
institutions. This alarm is forcibly represented by a
well-written letter to the Shareholders in the Bank of
Western India, under the signature of " Aristides,"
published originally at Bombay, and lately reprinted
in London. Doubtful of the expediency of, the joint-
stock system generally, the author disbelieves above
all its fitness for Bombay, where there is a population
which has become in mercantile affairs one of the
most speculative and gambling in the world, and
where everything like a disposition to over-advance,
is a beginning ,of mischief. The progress of trade
from a sound condition to phrenetic love of specula-
tiion, in consequence of over-accommodation, has
often been traced, but the concise description of it
by " Aristides," is well worth extracting, presenting,
as it does, a long chain of events in a very few words :
" The general course of these destructive hurricanes
may be thus described. We shall suppose the panic
to be over ; that the failures of merchants and bankers
having cleared away, it is supposed, the greater part,
if not the whole, of what had been rotten and unsound
in trade and banking ; that to all appearance a general
character of prudence and sobriety prevails in most,
branches of trade, without any apparent resort to an
undue extension of credit; that caution has been
taught and enforced among the commercial classes by
the reverses and losses which had been recently sus-
tained, and due attention paid to the most obvious
elements of mercantile calculation. Everything seems
going on quietly, and although large fortunes are not
being made, yet the cautious and prudent merchant is
slowly but surely augmenting his real capital. At
this juncture something or other, either real or ima-
ginary, always occurs (for no two panics are to bO
ascribed to precisely the same causes) to disturb this
state of things. An impression perhaps gains ground
that some kinds of goods are much wanted abroad,—
some shipments of commodities purchased at low
prices (for prices are generally low after a re-action)
had answered in the foreigu markets ; the profits
thence arising naturally. encouraged others—" the
servile herd of imitators —to follow the example of
the earlier and successful adventurers ; the markets
assume a decided upward tendency ; the example of
successful early purchase attracts general attention,
and induces extensive imitation. Here is the critical
point. The impulse to prices having been thus given,
and every succeeding purchaser having realised, or
appearing to have the power of realising, a profit, a
fresh inducement appears, at every step of the advance,
to bring forward new speculative buyers. The ex-
ample of early successful speculation becomes infec-
tious. At this particular juncture everything appears
to be prosperous ; the banks are pressed by their cus-
tomers, who, tempted by favourable mercantile as-
pects, become more urgent for cash, in the shape of
advances and discounts '•• instead of arresting the spe-
culative furor by withholding the means, they apply
the match to this train of private credit, which quickly
expands into irresistible power. Commerce degene-
rates into unprincipled adventures, not founded on the
demands of trade, but solely on the command. of un-
stinted resources."
It is the discount of bills at long dates, and the
purchase of bills not payable in India, which are as-
sumed to be the object of the Bank of Western India;
and that both of these must inevitably lead to over-
trading, with the ruin that immediately follows the
hollow prosperity, "Aristides" is quite right in sur-
mising. Borrowing the expressions of another local
writer, he says,, that the first impulses of a commer-
cial movement always come from low prices and a
tendency to higher;.. but the banks soon step in, dis-
counts become . more liberal, and what was at first
little more than a "_healthy breeze" rises into a
hurricane, sweeping along with it, not only the vic-
tims of inordinate speculation, but also those who
aided them with resources.

Rather unfortunately for their cause, the friends of
joint-stock banking in Bombay had held up as a
model the Union Bank of Calcutta, which gives
" Aristides" an opportunity of showing one of the
effects of that institution in the failure of Messrs.
Ferguson, 'Brothers, and Co.' to whom it had ad-
vanced 350,0001. The shorthistory of this important
failure furnishes an instructive lesson :

" In order to convey to your minds a clearer idea
of the evils of advancing upon produce, which every-
body knows perfectly well the tendency of the Bank's
operations will be to perpetuate, and of discounting
and making advances of a longer date than three
months,' I shall quote, as a practical illustration, a
case with which the greater number of you must be
familiar—l allude to the bankruptcy of Messrs. Fergu-
son, Turner, and Co., of Bombay. The failure of that
firm is to be ascribed to precisely the same causes which
brought about the panic in 1825, viz., the extreme fa-
cility with which discounts and advances were procured
upon bills at long dates,' both of which branches of
business are to be taken up by the Bank of Western
India. The facilities thus afforded to that firm by
their bankers furnished them with the means of enter-
ing into speculations which eventually resulted in
their ruin, and but for the great wealth of their
bankers, and the assistance rendered them by their
friends to prevent their landed property from being
forced suddenly into the, market and sold at a sacrifice,
would probably have brought them down also. One
adventure into which the command of money fur-
nished by their bankers tempted them to embark was
a speculative purchase of iron; in fact, the whole
stock at that time in Bombay, in the ex-
expectation that the price would advance. Prices,
which these speculative purchases in themselves con-
tributed to enhance, did accordingly rise, so long as
they continued to purchase, and when they
ceased, the utmost quantity that was sold at
a profit was, I believe, a few candies by retail.
Prices were nominally high, but there were no pur-
chasers ; indeed, considerable quantities of the metal
were re-imported into Bombay from various subordi-
nate ports in G-uzerat and the Concan ; fresh importa-
tions also took place in the usual course from Eng
land; and prices from having been forced up to an
unnatural height, speedily fell, leaving the adventure
to be wound up with an enormous loss. This was
.one of the causes of the downfal of the house.
" If Messrs. Ferguson, Turner, and Co., had been
obliged to pay the money they borrowed from their
bankers to purchase this iron at a short date, the spe-
culation would have been prevented, and the house
most probably would have been still in existence.
Yet bills (that is your money to be lent) at a long
date is a branch of business to be undertaken by the
Bank of Western India!

" The more immediate cause of their downfal was
overtrading in cotton ; and here again they were sup-
plied with ' advances' by their bankers—that is, with
money by which they were enabled to enter the mar-
ket, and purchase the cotton. These inordinate spe-
culations resulted in their downfal. Do I. allude to
this in reproach ?—No • I do it with sorrow, in order
to illustrate the evils of a system which all the world
(and you also, shareholders, by this time) must be
perfectly aware will be encouraged and aggravated by
the new bank."

The trade of Bombay will not, according to
" Aristides," bear the interference of an advance
system. The price of interchangeable commodities
must be regulated by the legitimate process of con-
sumption and demand, and any departure from this
process by means of a system of inordinate credit
will engender a host of speculators, whose name will
be " Legion."
The slight sketch that the writer gives of the par-
ties interested in joint-stock projects is neat and not
without humour. First, he says, comes the attorney,
a Parliamentary agent, who reaps a harvest by an
enormous bill of costs ; having pocketed the amount
of which he sells off his shares at the best price he
can, and takes no more interest in the concern, unless,
indeed, when its credit is diminished, he can make a
speculation by buying up some of the obligations at
a low figure, and then selecting some rich share-
holder as his defendant. Another party is he whose
credit is desperate, and who hopes to gain something
by influencing the Manager or a Director ; and a third
is he, who merely wishes to purchase shares that he
may back out when they are at a remunerating
premium. The word "Bank," says "Aristides," is
a favourite bait with many who take tinsel for gold,
and. do not find they have been deceived till it is
too late to repair the damage.
Whether as applicable to the adaptation of banking
for India, or as an eloquent dissertation on the system
generally, the pamphlet is likely to prove of consider-
able interest.—Times.

SIR CHARLES BAooT.—(Extract of a letter from
Kingston, dated Nov. 25.)—Sir Charles Bagot is
really very ill. To judge from the manner of persons
about him, to whom his is a precious life, he must be
in great danger. The doctors disagree, and none of
them can tell specifically what the complaint is.
Asthma,:severe dyspepsia, water on the chest, and dis-
ease of the heart, are all mentioned ; but nothing ap-
pears certain, except that the patient has been gra-
dually sinking for sometime, is reduced to a state of
extreme weakness, and gets no sleep without opiates.
The common opinionis that a fatal termination of the '1
malady cannot be far off.—Colonial Gazette.

POLICE INTELLIGENCE.
CLERKEIVWELL.
In the course of yesterday Mr. Greenwood receive(
10/., being the annual donation of the Goldsmiths
Company to the poor-box of this Court. • ,
It will be remembered that on Tuesday the 13t1
inst., Mr. Osborne King, a surgeon, residing in Ber.
ners' street, Brunswick-square; was charged by a con.
stable of the E division with being drunk on the pre•
vious night, and.,obstructing the complainant in the
execution of his duty, between 11 and 12 o'clock.
The constable on that occasion swore that Mr. King
without any provocation, addressed him in the mos-
insulting language, and continued the same conduc
all round the square. The complainant advised Ms
King to go home, observing that he had taken to
much wine, but this only produced a renewal of the
provoking language, upon which he took him U.
answer to a question from Mr. Greenwood as t 4
whether the defendant had done anything more, thi
constable, after some hesitation, said that Mr. more,
e;
had flourished his fist at him ; and, being furth
questioned why that was not entered in the charge.
sheet, the constable replied . that he bad forgotten it
Mr. King, in answer .to the charge, denied teo'
solemnly having been drunk, and complained of havio
been treated with great cruelty, and being locked ill
all night, though bail had been offered. The card
the gentleman who offered bail having been auppressec
by the constable, the defendant was unable to procun
his attendance. when the charge was beard.
Yesterday, Mr. -Clarkson, the barrister,
before Mr. Greenwood to request a re-hearing of Mr
King's case... He was prepared, he said,, with
number of witnessess of the first respectability, Wh°
notwithstanding the swearing of the police, could es'
fact lei
tablish, beyond the shadow of a doubt, the hi
Mr. Kin was perfectly sober on the evening when
appearet
was.taken into custody. Mr. King gave as a reams'
for the harsh conduct of the police towards hihim,t,
he had complained of some of them in consequence °!
-an intimacy of an improper nature .with his maid
servants. He . (Mr.. Clarkson) would not then
enter into that accusation, however just. All 11'
wished was that Mr. King's character should be re.
lieved from the unjust stigma which had been owl
upon it by the conviction of the Court.
Mr. GREENWOOD said that,
he could not enter upohanviintgapiairnead(
the case,coup
-he hear any accusation against the police unless the)
were legally charged before.him.. e,
Mr. Clarkson said, the gentlemen who were pr
sent had attended-with some inconvenience to them.:
nyordecideic,
•selvesi and he would wish, at all events, that their 01
dence should be heard in exculpation of his client.s.
Mr. GREENWOOD said that if the gentlemen w?otlo
to make any statement they were at liberty to a
but he could not allow them to be sworn- 11
• Mr. Burt, of the firm of• Denys and Co., Tower-11,
stated that -Mr. King dined with him on Monday,,tl'..!
12th, inst., at his residence, Savage-gardens, T‘or
hill, and. left at a quarter:before ten o'clock with -`-"V_
Bleamire. Both gentlemen were quite sober, havire
taken but a. very small, portion of wine.
Major Bleamire stated that he went part of the No)
home with Mr. King, whom he left perfectly sober.
Mri James, Cobb, a land-agent and surveyor, r :„`Ol
ing in Lincoln's Inn-fields,' .stated that, sliOrtlY
eleven o'clock on the night of Monday, 'ous
he saw Mr.-King, . with whom he had no previ
at
the
quaintance, in the custody of a police.constahle, ,r,
corner of Great Ormond-street. • Mr. King was per'
the constable to let him go. st the
Mr. GREENWOOD—There is no charge -agn,in any
the 12th enrol.
constable before itie, 'and I cannot now go into
misconduct on his part.
Mr. Cobb ,proceeded to state, that his attention Nab
attracted by Mr. King's' situation, as well 'it.rs, bYsh
respectable appearance and, demeanour• He a I
what was the matter, to which Mr. King relot 111
am requesting the' constable to allow me toe all
residence and see my wife before I go to the Cobb)statia'
house, but he will permit me.' Be g,l
considered this very hard, and he also remarked that
the constable was very, ill tempered. • whether,
GREENWOOD—The quesn DOW IS,
Mr. G aw"
• t'
al
in your judgment, Mr. King was sober or
arches,
the time ? I cannot at present entertain
against the.police.
Mr. Clarkson—l am very Sorry for it. 111.---'is ten,
called
tleman left.his. card at the station-house, to
upon as a witness, but the police suppressed it._
er I
Mr. Cobb—The gentleman was perfectly sob
at first
accompanied them to the station-house, and r'
wpAirre. GREENWOOD—NOW, fused admittance. • been for
sir, as you have -00
some time in London you must know that if
wished to serve your fr'iend you should have at
in the Court next morning. - stranger t°
Mr Cobb--7-Why, the gentleman was a
"eti ,o
me, and ,I think I sufficiently showed my. an,'" leay-
serve him and to further. the ends of job° I".Y. the
ing my card at the station-house, and desirinf
bad
acting inspector to send for me next morning. I
not the remotest idea he would suppress ray ell:11,5 to
even told Sergeant Dodd that I was moSt anx,'°;sta-
be.present. tendered. myself as evidence at the rota,
tion-house that the entleman was not drunk,
Sergeant Zodd said, .'This gentleman is drunid set-
you see ? Take him off to cell No. 4." I the
geant Dodd that would be bail for him,. L'4" now
sergeant replied again, " Don't you see he
locked up ?" . • •
_•
Mr. Clarkson—About Dodd's conduct at the statil,
house, however rude or improper, I say at n'',"tr.
but I directly charge him with suppressing
Cobb's card.- . t
Mr. GREENWOOD—With respect to that you 1.r11:0
apply to the Commissioners of ,Police to institute
inquiry into his conduct. •
Mr. Cobb (to Mr. Clarkson)--1 never said 3111:
t
thing from which
,it could be inferred that the .rdn
tleman .was not perfectly sober, and I distinctly. es:ift,
Mr. King request, to be be Permitted to see to
before,going to the station 'house.
Mr. King—Yes, I was
,fearful lest she should be
alarmed. at my absence.. er'
Mr.. eiarkson—Well, really, V the pOlice riere
!flitted to. tyrannize in this way, I know n°' vv the
they will st
op. lam satisfied that after
evidence now adduced no man can have a r° edit
the
doubt that, Mr. King. r. was perfectly sober on for
in question. Was it not a monstrous thiegee his
bearietgioost
. sober man first to be refused permission to sthe
own wife, so as to apprise her of his situation-7i re'
to have respectable bail tendered for him
fuseisubsequently to be cast into a cold cell I_o,
common felon, and locked up there until the
blneude,
ing; and finally, when brought into Court, .° bier
prived of the only means be had of exculpatie,obbs
self front the charge by the suppression of Mr.eub the
card ? Regarding the charge of as wE'll',.oraier
constable had tagged to his charge on tL,it.
hearing, there was net the slightest ground for
Mr. Gnenewoon said he was sorry these ge.i.,„ their
were not present enthe,previous occasion to give Jr
evidence. Be would not say how he should ide
cided ; but if Mr. King had stated that he earnt,' been re'
adduced such evidence, the case should have
did
ue
mended .for their attendance. •
Mr. King said he was so excited at the tin° ,heer, felt
not know what he was doing. He now, howe%
_d he
satisfied, as, his character bad been cleared; 811 the
hoped the same publicity
.would be dto
fforde e
explanation which had been given to the eharg
Ale 01°417
AIRS. BALPOUR'S LECTURES.---ThiS hib,•-, • Ins;
lacljr delivered her last lecture at the Literaricooday
tution, Edward-street, Portman-square, on iJer
evening, to a crowded and delighted audienee'., pre',
present course consisted of. three lectures--1"0 of
judice, Credulity, and the Female Soveretir
Europe. It is difficult to describe the Pe e° bell
terest with which she invested her subjects-- pet.
intellectual, yet popular in their shared
spicueus in style, clear in arrangement, and bie 03°.'
with a sweetness of diction, and an admirtt ta0(11,
desty, that evidently delighted the intelliget!oie to
fot
tories to whom they were addressed. We r-eihed
add that Mrs. Balfour is as much distingals , lot
her moral excellencies and Christian principlespi
titoi
her intellectual capabilities ; and Ave are, I°6oolll
that her lectures cannot fail to exert an eleva indeed'
improving influence on her own sex, whys
may be truly proud of such an instructress.

--- - - =-- 4 g•
.11 Ili Tli S. . lady
of " • 1
On the 15th inst., at Caher, Tipperary, 'the
'-
Greene, Esq., 7th Dragoon Guards, of a son.
~., of ilie I"
On the 19th inst., at Stated Rectory, the `"Y - the
Bishop of Tasmania, of a sou. titer.e Plik'
On the 20th inst., at. Southwick-crescent, Y a,
lady of John Challice, Esq., surgeon, of a dattll, of W'
On the 20th inst., in Oxford-terrace, the ". 0(0
Chapman, Fsq., of two dauhters. Foolu
On the 20th inst., at Greenwich, Mrs. •Teh°
d'aughter.
ssi.ooen,
theth
E Of °r°l
Nesbitt,
surgeon,e
22 11ss tt inst.,
onn
fss
a: .
~
daughter.taht
eTwo itfte Tottenham, am, the lady of Wioios , v
of Mr. Henry tof
Ar ,
Inn-place, of a dauiliter.
.1 Mn'
•
On the 21st inst., at Norbury, near Croy.oo, si
Kett Barclay, of a daughter. A Of Sialli
On the 21st inst., at Leyton, Essex, the Is-Y
James Capper, Esq., of a son.

MARRIE.
eAraeu(inh.
Devon,tteholf9k!ho
Johnienrstt ;cibihyl
er t. .:hoe
Esq.thße er
EArthurtAt hj curl
Esq., 0
the
On the 10th inst., at the Cathedral, Canterburi, ,_,po
Frederick R. A. Glov.er, M.A. , Rector.of Charlton 'pp
to Anne, youngest daughter of the late Thomas Star •
the Precincts, Canterbury.
wOOord. hEes(t.2o,tohf
Wil"br
ins :
Lint
youngest daughter of Robinscn Wordsworth, Egli'
j°l'an%Glinlini,ngtohaEmli'sapbe°trhsettorCtblia;rl6erda°4

el'
' )31E D• hill,Wl' As
On the'l6th inst., at Ascot Lodge, Sunning-.
relict of T. Hort, Esq., aged-74. fop? ' . OP—
On the 18th inst., at Queen's-buildings, Br°rnr (POI,'
Kay
On B itloo t
the.2oth sq
inst., in Nest Strand, Elisabeth, w
..tre •
late Mr, Edward Walbancke, of Sohn-street, Oxford

- . • _
London Printed and Published by 111UDO.: strsl
No. 112; Strand, at The Sun Office, O. 1"121
the County of Al ddlesex, Thursday, Deeenlbe ,)r