The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-27

ings," had prevailed for many weeks. Supplies Of
bullion from abroad were extremely scanty, except
through artificial channels. An expected remittance
Of quarter OF q million from New York was
hailed as godsend for any further addition to the
stock of metallic currency there seemed no other
resource but to buy up specie at premium on the
continent. There was then no Australia or Cali.
fornia to send their golden harvests and our
own export trade had not reached half its present
value. The Times OF that day. which had up
to the last moment denounced every proposal for
relief when the letter appeared prognosticated a
run for gold and oracularly declared that the re-
Taxation Of the bank act could "Only pr0long the
reign OF those errors under which we are now suffer
ing, and bring upon US at no long interval still
more terrible crisis" Yet what was the issue of
step heralded by these dim foreshadowings? In a
single day after the government missive had been
promulgated, cOnsols rose from 80 to 800. From
that moment also the position of the bank rapidly
recovered. The letter. as every one knows, was
never really acted upon-no necessity was round 10
issue the illegal notes. So far from the apprehended
run for gold taking place, III less than month al
forwards by November 20, the amount OF bullion in
the Bank Of England exceeded ten millions, the re-
serve of notes stood at four and half millions, and
the rate Of discount had fallen by the spontaneous
cessation of pressure, to per cent. That the re-
suits in the present case will follow similar cycle
we have the fullest confidence.
From the London News (City ArticleJ Nov. IA
The government letter, authorizing suspension
Of the provisions Of the Bank Charter act has led to
a decidedly improved tone in every department of
business. The community have been startled at
finding how narrowly they have escaped gigantic
panic, and it may be days yet before affairs will
tubside into really settled state. Thus far how
ever the effect has been most satisfactory; indeed,
considering the alarm and gloom which prevailed
everywhere yesterday, an almost magical change
may be said to have taken place. or course no one
expects that the facilities just accorded by govern
ment will either precpitate decline in the value of
money prevent the fall OF embarrassed houses but
every one is perfectly satisfied at finding that the
incpent panic has been stayed. The letters received
iii fnfv
tary disturbance and commercial excitement almost,
ii not altogether unparalleled, and it is fearful to
contemplate the ruin which would have resulted
from the postponemcnt of the expected relief for
even one or two days. To-day money circulated
much more freely in the discount market, and, in
consequence, there was witnessed the expected and
satisfactory circumstance OF decided diminutiOn in
the demand mt the Bank OF England. The applications
at that establishment to-day still very heavy, it
is true; but from all that gather We believe
they were not by any means equal to hall OF those
witnessed yesterday when as before stated, the de-
mand was perfectly unprecedented. Considering the
prospect of gradual subsistence OF the demand,
which will be promoted by the increased disposition to
lend observable in the open market, strong i'm
preston prevails in quarters usually well informed,
that the Bank Charter act will not be actually in
fringed. In this case, Of course, Ministers will have
no occasion to present bill of indemnity to Parlia-
ment. As IL is positively alleged, ho,ceper, that
Parliament is to be speedily cOnrened, the suspi-
cion is expressed in many quarters that other fnan
cial considerations may haze something to do wh the
step.
The funds opened this morning with great buoy
ancy, at fresh rise Of 1 per cent, and from the
eagerness to purchase which was at first evinced
further advance seemed probable. decided
alteration, however, was occasioned by the ap-
pearance of sellers of stock to a very large
attributed TO joint stock bank. IL is computed
that, altogether, stock to the amount of from
100000 to 100000 was to-day pressed upon
the market. The result was a fall of per cent
fro al
finally closed 4 to per cent lower than yesterday
The increased strength Of the market, however, is
proved by the fact that so large amount Of stock
was so readily absorbed: yesterday no progress could
he made with sales of stock for cash. The statement
that Parliament is to he called together financial
grounds tended to discourage buyers, and the antici
patton OF extraordinarily uniayorable bank return
operated in the same direction.
Nearly every other department Of the Stock Ex-
change wore decidedly improved appearance. In
English railway shares the rise this morning was
even everish, and therefore met with rather de-
cided check later in the day
Great regret was expressed to-day at the announce
ment of the stoppage of the well known and respect
ed firm of Messrs. Draper, Pietroni x Co, Of this
city, largely engaged in the Italian and Mediterra-
trade The liabilities Of the house estimated
at about $3.50 ,O00 but a considerable amount OF
their acceptances against credits will be withdrawn
the ultimate engagements will be much reduced
Great sympathy Is on all sides expressed for the
partners. Suboined is copy OF the circular is
sued
r.. \.
Our connection with the Trans. Atlantic steam Navga.
ton Company Of Genoa having much embarrassed the
financial position Of our general business aud that com
paDy seeking this time press unfair settle
ment the effect Of which might prove injurious 10
creditors generally, have (howcver painful at this
moment) determined suspending payments feel
that by this step the forbcarancc Of those
parties who may be int rested in the realization Of
assets shall although We may cause temporary in.
convenience TO correspondents) be enabled dis
charge all obligations. We have awaited ourselves of
the assistance Of Messrs j. f. Coleman Co. and have
ad NJ
you with as little delay as possible We are yours faith
July, DRAPER, P1ETRoNI X co.
From the London Times, Nov IL
AT late hour yesterday afternoon the commercial pub
lie received the that the Bank Charter act had been
suspended The bank Is thus allowed by government to
issue an excess notice defined value, and pro
mise IS given that bill ~ Indemnity viii be introduced
IN the next session o Parliament TO free the bank from
the consequences Of it, conduct should he necessary to
take advantage Of the permission Of government On the
merits OF this step will say but little. II may be
sistent with the maxms Of political economy 10 regulate
the issue Of during ordinary times and thus 10 check
rash speculation and the embarcaion business Of
destitute Of capital. while when actual dearth Of money
prevails the chef banking institution Of the country
be allowed 70 extend s issue Of notes under public
guarantee But " such y To he the principle Of
monetary system, the sooner Il y embodied into a Law
the better. II the bank Is to exceed its legal
issue Of notes often is rate Of discount
j. necessarily raised above certain point, then act Of
Parliament should establish the practice On sound and
ineligible principles. Tie commercial interests Of the
country should not he subjected 70 system BY which
law l. obeyed loLg obedience easy and Temporal
ry swcptaway pressure panic supervenes.
The houses which in sI7 and In 1857 have stopped pay
before the relaxation Of the law may well complain
that while they have been crushed by the operation 81
the Bank Charter others not solvent 81 high
standing than themselves have been saved by the
pension oi a. Whether the bank avails Itself Of the
privilege accorded 10 or not the invasion Of the law Is
the and those who, trusting u IL inviOabty pru
deutly suspended their payments nov Ind themselves
placed disadvantage in respect to those whom bold
good fortune encouraged Ia hold a day two
longer.
We can well imagine that only the representation that
great commercial calamtcs about Ia take place has
determined the government ~ act - bold part How
much they feel the importance OF the step proved by
what have now 10 announcoths has been resolved
to call Parliament together Al once IN order 20 settle the
questions raised by the present crisis aud 81 register for
Ministers and tho Bank Directors that indemnity which
they are obliged 10 appeal council viii, under
stand he held next Monday, AZ wbsh, probably, Para
mcnt will be summoned 10 meet at the end of fourteen
days.
We may certainly prepare ourselves for violent at.