The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1866-05-25

Terrible Financial Panic.
The financial spanic commenced late on Thurs
day afternoon of the 10th, in the suspension c
Overend, Quincy d Co. The business was cor
verted in August last into limited liability CON
pany, witiila nominal capital of five million stel
ling, of which q million and half was paid "
The liabilities are stated at from ten to twelv
million .poundgy ysterling. The breakdown is al
tributed to hsayy speculative sales OF share
which forced ssGHn down from ten premium to
discount, Depositors then began to get alarmed
and the drain on the 10th was very severe. AZ
plcation for assistance was made at the Bank {
England, but che governors declined to give an!
on the ground that it would be vain in or1sl
like the present to assist one establishment ur
less they were prepared to help other application
as well. Il was too late to make call on th
shareholders, or take any other step. The door
OF the establishment were consequently CLOSED
The failure does not compromise the 6urne
Bank at Norwich.
On the following morning Friday Che 11th) in
tense excitement prevailed in the financial circle
Of London, Liverpool, and other centres, and br
sineLs was almost suspended. ..
The Times of the 18th, in It's city article, say
"The Bank OF England yesterday raised the rat
Of discount from to 8 per cent, and charge fd
special advances to 10. The pressure even
these terms was enormous; and It was only o
unexceptionabe bills that an accommodate
could Be obtained. Meanwhile additional an
most serious disasters were hourly announced
The first was that Of comparatively small ban]
Came that Of PsttoG Belts for four millions ateI
ling; then thatof W. Shrimpton, railway contra
tor, for 420G000; and finally it was understof
that the Imperial Mercantile Credit Association
whose paid-up capital is half . million ster1nA
and the Consolidated Discount Company with
paid-up capital Of quarter OF . million OF std
ling, must, with extremely heavy oommitment
pass into liquidation During the day the ra4
intense anxiety was manifested to ascertain
any step had been taken: by leading merchar
and bankers 10 represent TO the Government q
extent Of the oriais, and afalse notification in
Stook Exchange to the effect that an extra iss {
of bank notes to the extent Of ten millions b
been authorised caused at one time general
bound in prices" :. '-:' - .q e. o,-i.i.
ernment had resolved to suspend the Bank Oh
The assets Of Peto & Belts, even under the m
depressed circumstances, are estimated ct 8
millions sterling, and it is confidently assuH
that In short time p proposition for the adjq
ment OF all ciaime can be submitted. -
Every oneHin hope that this may be the q
for Sir Morton Peto and his partner rank pro
nently amongsthose who have. carried che fhml
English enterprise to all parts OF tho globe, W
they have commanded high personalregard ia
sections smong. their countrv1nen. -
s.dss i s ssss ssssss ss01ss %
approaching halfmonthly settleraenton the 81
Exchange. A large number OK country ban
were in London to confer with their Log
agents to provide against oil danger from
runs. Rumors were circulated In the coure
the day Of severe run on the bank Of Barn
Hoore's, Honbury & Co., but they were Ont
without foundation. There was run upon
or three other banks, and being well met, soon
sided. Both in London and in the country az
preparations we're very generally made for
contingencies.
creased panic at the commencement on Fri
but less unsteadiness at the close.
At Manchester there WAS . complete pause
Glasgow the iron brokers resolved to Gus
business till Monday.
In tfM produce markets at London prices X
almost wholly nominal. Taking into account
depreciation that has simultaneously occurrd
English funds, railway and foreign securities
the limitation in the markrt value Of this pro
since the beginning Of the year mny be consid
to reach one hundred and thirty millions stel
to say nothing Of the losses on cotton, C
goods, iron and other articles.
THE ACTION OF THE GOVERNMENT.
The action Of the Government was anno}
in the House of Commons on Friday at mid
by Gladstone, who had been engaged all thf
ming in consultation with bankers and othere
represented to him that the panic In the cit
without parallel in the financial history
country.
Mr.. Gladstone said he had addressed leS
the Bank Of England to the effect that Il
should find occasion to afford relief to the
OF legitimate commerce, and make suoh adI
as would require the issue Of notes beyoI
amount allowed by the Act, the Cover
recommended them not to hesitate In do
and undertook, In the event Of that contiu
to make imm. diate application to Parliam,
an act Of indemnity.
The Times, in an editorial, says: s.If an
can justify the suspension Of tho Bank
Act, the panic which swayed the city to s
on Fridav may excuse the step, although
lieved the rein OF terror was appro
Its end, and would have speedily ceasa
Even now it is probable the license allowed
,he bank will not be used. It cannot, however
be denied that about midday yesterday, th
tumult became route. The doors Of the MOI
respectable banking houses were besieRed, NOR
perhaps by mob, actuated by strange symp,
thy. which makes and keeps mob together, tina
by the creditors OF banks, and throDgs heavln
and tumbling about Lombard-street made ths
narrow thoroughfare impossible. Such excite
ment on all sides has not been witnessed since th
great crisis Of 1926. Each man exaggerated th
suspicious OF his neighbor, and until q report, 8
that time unfounded, was circulated in tho aftel
noon, that the Government had authorized th
bank directors to issue five millions additional j
notes, it seemed as If the fear and distrust of th
commercial world had suddenly become bount
less. The statement was baseless at the tim,
but served to allay the panic which had no soil
foundation. Even the announcement Of Peto
suspension did not revive tho panic in ts first il
tensity, and the statement Of other stoppage
produced little effect"
The Times adds: 'We need to be persuade
that had the Government stood firm the pam
would have subsidized itself, and il, as wo are t
expect, confidence will be speedily restored, n
shall attribute it to natural causes rather than
the interference Of the Executive Government"
The Daily News applauds the wise and prong
action OF the Government. It says: During Fr
day the Bank extended its loans and discount
until the amount exceeded four millions sterling
The effect was to reduce the Bank reserve b
nearly three millions. This diminution and th
prevailing distrust justified the Government il
tervention."
COTTON SIRED