The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1847-11-30 00:00:00

FINANCIAL AND COMMERCIAL SUMMARY.

The Directors of the Bank of England broke up on
Thursday without reducing again the rate of interest,
which was generally anticipated.
The balance-sheet of Messrs. M. L. Bensusan & Co.,
Mogador merchants, whose failure took place on the 26th
of September, exhibits liabilities to the amount 0f£52,016,
whilst the assets are only £3,915.
The draughts of the West India Bank have teen re-
fused acceptance by their agents, the Union Bank of
London, the reason being that the West India Bank had,
against the repeated and emphatic warnings of the mana-
ger of the'Union Bank, continued to make purchases of
the bills of Higginson, Dean, and Stott, of Barbadoes,
on Barton, Irlam, and Higginson, of Liverpool, to an
extent that was certain to prove dangerous. The capital
of the concern, which was established about two years
back, is only £120,000 ; but its liabilities are very large,
and wholly disproportioned to this amount. Exchange
operations constitute one extensive feature of the business
carried on, and the bank is said to hold no less than
£BO,OOO of the paper of Barton, Irlam, and Co. Its cash
deposits held on interest are very large, and it also issues
notes. Judging from the last balance-sheet presented,
dated August 27, 1847, the general affairs of the institu-
tion appear to have been conducted in a most unsound
manner, the cash in hand to meet £413,450 of notes in
circulation, balances due to other banks, and deposits
from customers, being only £34,167, or less than one-
twelfth of the amount. The head office of the bank was
at Bridgetown, Barbadoes, and it had branches at St.
Kitt's, St. Vincent, Grenada, Antigua, Tobago, and
Trinidad. The effect of the suspension, therefore, if it
shall be forced to suspend, will be severe and extensive.
Since our last publication the following commercial
disasters have been announced :—On Tuesday it became
known that the drafts of the West India Bank were re-
fused acceptance by their agents, the Union Bank, of Lon- .
don. Messrs. J. and H. Reay, in the wine trade, liabili-
ties £20,000 ; and Messrs. Lackersteen and Co. East
India merchants, with liabilities of upwards of £lOO,OOO.
suspended payment on Tuesday. Messrs. Defosse and
Co. of Brussels, bankers, have also failed. On Thursday
four failures took place on the Stock Exchange, London--
Mr. Henry Whitmore, broker, Messrs. Secretan and Cap-
per, brokers, sacrificed, it is understood, by a principal;
Mr. William Abbott, and Mr. William Eykyn. On Fri-
day the London papers announce the stoppage of Messrs.
Tanner and Ward, leather factors, liabilities, £55,000. In
Rotterdam two houses have stopped—Messrs. Riewit and
Sangeveldt, and Messrs. B. Rouffaer and Sons. Messrs.
Hennekinne Briard, of Mons, whose suspension is saidto
be only temporary, must be added to the above list.
The Times of Tuesday announced three important
mercantile failures to be added to the distressing list
which the last ten miserable weeks have presented ; and
the Globe laments over the badness of the present state of
trade, and anticipates much loss and suffering on the part
of the middle class of traders.
In Glasgow several failures have taken place this week.
That of Messrs. A. and J. Downie, drysalters, is the most
important. Their liabilities are nearly £200,000. The
name of another house in Glasgow, of some importance,
has been reported, but as the precise designation
of the firm has not been given, and as there are several
houses of the same name, it would be imprudent to give
publicity to the rumour.

The times of yesterday, announces the suspension of
Messrs. Sargant Gordon and Co., produce brokers. The
liabilities of the firm are stated at £150,000, of which
£BO,OOO consist of acceptances, and it is understood that
six months back their engagements were heavier to the
extent of £lOO,OOO. The house was of about seven years'
standing, and the cause of suspension is said to consist in
large advances made to Messrs. Lackersteen and Co.,
Johnson, Cole and Co., and other parties in the East
India and Mauritius trade. The securities held are repre-
sented to be all in perfect order, and hopes are entertained
of a not unfavourable liquidation.
To the above announcement we have to add that of the
suspension of Messrs. Leaf, Barnett. Scotson, and Co.,
warehousemen, of Wood-street, London. They fully
expect, ultimately, it is said, to pay 20s. in the pound,
their assets amounting to about £lOO,OOO, and their
liabilities to £75,000. •

Remittances of specie, in sums respectively of £lB,OOO
and £24,000 were received on Wednesday by, the packet-
ships Montezuma and Garrick ; and on Saturday about
40,000 dollars in silver were received by the Royal Ex-
change, from Callao. £lO,OOO have also been brought by
the New World, from New York.

The effect of the reduction of the rate of interest and
discount to seven per cent. was to advance the price of
Consols from 84k to 841. At first this measure produced
a good deal of dissatisfaction, the conduct of the director's
being considered to be capricious, and likely to produce
violent transitions in the value of public securities. The
reduction of the rate of interest, however, by the bank is a
movement in the right direction ; and it is probable that it
will be followed by other banks in town and country.
We learn from the Bank of England averages published
on Friday that the notes in the banking department, con-
stituting, with the coin lodged there, the reserve fund,
had accumulated to £4,22B,o9s—increase upon the week
before, £1,430,385. In the treasury letter to the Bank
some days since, retiring the authority before given to
enlarge accommodation at discretion, subject to the exac-
tion of 8 per cent. interest, the reserved fund was assumed
to have rallied to five millions. The average states it at
more than three-quarters of a million less. The addition
of the specie would still leave it more than a quarter of a
million less. Full one-half of the reinforcement of the
reserve fund of notes arose from the running out of bill
or " other" securities, not by fresh discounts replaced to
the extent. The influx of coin and bullion would account
for the remainder. The continued withdrawal of private
deposits is calculated to excite attention if not uneasiness..
Since Monday the quotation of Consols has undergone
remarkable changes. On Friday at the close of business,
Consols for money were 85k to 85i ; Bank Stock 187 to
189, and Exchequer Bills 2 discount to par. On Saturday
the funds were again heavy, with but little doing. The
excitement of the settlement being over, there was no ap-
parent incination to enter into renewed operations. Con-
sols were 84k to 841 for present transfer, and 85k to 851
for the 18th of January. Exchequer Bills 2s. discount to
par. Bank Stock 187 to 189. The New Three-and-a-
Quarter per Cents. 84k to 85, and the Three per Cents.
831 to 831.

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