The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-22


think can scarcely be said yet 10 have emerged,
may be observed that no symptoms OF an alarming o.
OF threatening character OF compare the bullion
and of 1856 and 1857 manifested itself until
about the 18th OF October From that day perceptblc
the 10th and the 18th Of November from to
000 while the notes fell during that period
from about "a 500 TO about 81 400 600 But before
that time 1t cannot be said that anything occurred which
could create uneasiness In the OF affairs nj the
bank The immediate of the crisis ,oas, mast b.
hin the knowledge Of the most honorable gentlemen 'oho
nopnaesen either NTH the management Of
the bank ah any issues Of paper money IN thi country
greo ont Of The dcrangement Of the Anserrcan trade su
pervenng upon previous Inconvenience created by
the Indian revolt the shipment OF bullion the disturbance
OF TIE Indian trade and, TO certain extent speculation
upon the continent Hososrer, may BE- said thai the al
exclusive cause If the commercial distress the de-
ranee,nent n he american trade. For some months pre-
comIaned by an adverse Of the exchanges and
high rate Of discount al the bank On the II OF April
at 6 per cent The 18th Of June was per cent
on the 10th OF July 5 per cent on the sh OF october
raised per ceut the 18th OF October to per
ceAt the 10Th OF October TO cent on the 9th Of
November TO per cent and the 9th of November to
per cent These figures show that high Of dis
count had prevailed, tue natural consequence Of an ad
verse state ofhe but the OF the bank
cessfu in reversing that state of things aud in producing
favorable state OF exchanges before the issue OF the go
yeInment letter. AT that time the foreign drain OF gold
had been checked, and the exchanges were favorable
Well the FIRST event which precpitated matters in the
Bank Of Liverpool wish to call the attention OF the
committee TO the fact that that was not joint stock bank,
and that Il was not bank OF issue. believe there is
single bank Of issue in that town. but the Borough
Bank not bank Of issue; II was corporation OF
general character, and the amount of its Liabilities was
very considerable As far therefore, that establish
ment concerned the consequences produced by its
failure cannot in any way be traced TO an excess in the
issue Of bank paper. That failure took place about the
9th If October and the ert epe ~ importance iods the
fnigt II MeSsrs. DenniSoun The 7th Of Nocember.
7t house extensively engaged in the American trode
/ believe that it house conducted with prudence,
and possessed of large capital bit IL suddenly forced
Suspend payment BY the 'aiyorsnes arising ont Of the
s nda ,an ss % a nod oc,rr,d ,' n
tbs country and accompanied ~ general SUSPENSION OF
payments The house Of Messrs Dcnnistoun failed,
as have said. the 9TH of November for upwards Of
81 $50 600 About two days afterwards believe on the
9th of November large Joint stock bank in Scotland
fi,ed-the Western Bank which had numerous branches.
within day or afterwards another large joint stock
bauk-the Ciiy OF Glasgow Bapk-also failed ME joint
circulation OF these banks about fSaO 600 of which
about one half the certified circulation they
authorized 10 make upon securities, and the remaining
half upon buor Their deposits wereabout 50 900,
showing that not their note circulation, but the
magnitude Of their other transactions and Liabilities which
led to their unfortunate failure (Hear, hear may
mention with regard TO the Western Bank of Scotland
that there had been no run at all upon 1t previous TO its
failure, and that when It's doors closed not single
had been presented for payment out OF the usual
thus showing that was not the dscred OF the
Of the baIk but failure to meet its large engage
ments Of other descriptions which LED to its unfortunate
fall The first sigh OF pressure more Immediately affecting
the mercantile classes Ia London and approaching
10 the Bank OF England the failure OF the house OF
Mcssrs Sanderson Co bill brokers' which took place
on the 10th OF November. such event could not
occur without exercising serious influence upon the
crodis Of other similar establishments in this city The
publication of the bank returns for the week ending
Wednesday The ath Of November, which showed con-
siderable reduction of the bank reserve, was crcum
which, combined with the other facts have men
toned could hot but create uneasiness aud alarm and cali
attention to the diminishing resources of the bank The
alarm increased n London, and thnk cannot adduce
clearer compeudous proof of the existence and
extent Of that alarm than by referring TO the IN rease othe
BANKERS deposits AZ the Rank OF England in the week from
the 4th 10 the lfh OF November. II may at irst sight
hat the committee 10 refer 10 the
OF bankers deposits IN the Bank OF England AS
rroof asrm-lhear hesr)-but must be borne 10 mind
iha, the Bank Of England the bank which the London
and other bankers keep their deposits and therefore when
thew increase those deposits suddenly and extensively
q proof that they guarding themselves against a
upon their funds, that they expect demands from
their customers, and are IN fact II ! may so say,
boarding their The increase OF bankers deposits
the Bank of England Is therefore, recognized test OF
the existence OF alarm. Ia the week from November to
November l. these deposits increased by no less than
81 100000 But there was another decisive proof OF the ex
seuce OF alarm 10 this Sy-namey the general cessation
of all dscountng except by the Bank Of England that
time scarcely possible 10 obtain an advance even
upon bills which undoubtedly good either from bill
brokers bankers their operations for the moment
universally suspended. and the Bank OF England the
only establishment IA London which discounts could
lake place. Nhs circumstance may be referred 70 as
oleraby concus We proof 81 the general prevalence OF
alarm. may mention that at that time single discount
ing house paid in day $500 o0o-fIooooo TO depos
tors, and sloo00o to discounters-a sum, apprehend
almost unparalleled In operations az that kind will
call the aticntoof the committee TO the state Of the
bank the day before the recent government letter was
similar letter IN 1s47 and think the committee will see
that with regard 10 every point indicative OF the strength
its the position Of the bank in 1851 was less
favorable than position IN 1877 The inference to which
wish to lead the committee is that IL the government
justified by The orD N Of Parliament OF the public,
and competent 10 sges in issuing the letter lsi7, then
foTtig'ftLcy justified this year in issuing similar
letter The following Is statement Of the position OF the
oct %, lsl7 Nor IL 1857.
Bullion. Es,33,0o0 EIlIl 900
Reserve Of notes IN banking de
IL
Reserve Of coiu.............. AZ 900 500 600
deposits (rrvate) .......... s,asooOo l2,sS5 200
Therefore think the committee will see that whatever
the grounds for the interference Of the government
Ia lS45. the grounds stu stronger in the present
year There another most material point Of difference
between the Two cases which perhaps even stu more
u,cs the interference Of the government IN the present
year Ia ls47 The turning point had been reached before
the issue o. the lecrthc state of things had begun to
improve II srue that the issue OF the letter, IN the
opinion Of competent Judges accelerated that process but
the Improvement hsd already manifested Itself and the
worst had been before Il issued After stating
the GROUNDS upon which be proposed to for the
app o. The select committee Of last session. he
he Chancelor) entered INTO details 10 show that the
foIicy Of the acs of ts44 aud ls45 had been
perfectly success ful, and that our paper cur
roucy was III sound condition lancs, he
remarked might happen, a. al Hamburg Il our crcaa
ton purely metallic and in such crisis limit 70
the paper circulation must create alarm. At such mo
mcnt there must be powerful relaxation, and u would
be question for the select committee, among Others
VII Tier preferable to leave that power in case OF
gency In the executive government 20 be exercised
their respons blr to Parliament or 70 adopt the con
cuson q the Lords committee, that such power shoult
be engrafted upon the act.
Lord J. Rrs,m said he was in the singular position Of
being sized with what had been done by the govern
with the act ~ lss3 with tho proposal To re
appoint the committee uf last session. Hut the man
uer in which the motion for a bill OF indemnity be
for the House raised the questions. whether, the act OF
- having hecn twice suspended, could he, ought n
hc maintained If SO, would ! not require extensive
alterations. and ought the susps nding power 10 be
vested IN the the Bark Of England, In
the discussion the national currency had been GRO
that the former had been preserved by the act OF 1sA
but oil credit would is course, and all tat
Parliament could do 10 prevent ts damaging the
uuna currency which he believed had suffered no ieprc
citation IN his ~ mon, the act Of the government bad
saved The general interests of the country from great
disasters, and with Mr.. Gyn be hoped never 10 sec
Minister o. this country infatuated with principle,
itself refuse relax the act of lSt4 That
act lie did think required extensive alteration, and he
thought that the appointment of the committee o. last