Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1866-05-28

! Additional PPrticuIars-Tbe Suspen-
sion of the Bank Oh "a ter The Heavy
Failures.
In the British House of Commons, on the
l1th instant, the Chancellor of the EXche-
quer made the following statemene:
81 stated at the commencement of the
evening that representations had been made
to me, from quarters of great influence and
credit, with regard to the extraordinary
state of alarm and distress prevailing in the
city to-day. / stated that those representa-
tiOns had come to me from gentlemen rep
resenting the private banks of London in
particular, and that had reason to expect
that | should receive similar representa-
tions from the Joint stock banks. Shortly
afterward did receive deputation ofgen-
temen connected with the joint stock
banks, and the representations that re-
cpived from them were more earnest and
| urgent than | anticipated. | stated also at
the time | had the honor of addressing the
House, that the effects of the days proceed
| ings in the city had not become known to
US through the Bank of England. Since
that time they had become known, and we
| find that the bank, with Just desire to
maintain the commerce of the country, and
to avert disaster, has extended its loans and
discounts to-day to sum somewhat eX-
ceeding four millions, and the effect OF that
large accommodation was to reduce the re-
serve of the banks by very large sum, in
deed not very far short of three millions Of
| money.
"Under these circumstances her Maiesty's
| Government have felt that the actual re-
serves of the bank, as far as is known, be-
cause the precise state of the reserves
throughout the country is not known, yet
the London reserve is known, and the esti-
mate Is sufficiently accurate for all practi-
cal purpOses-under these circumstances
we find that the bank reserve being reduced
| in day from about six millions to sum
not exceeding three millions that is state
of things, combined with the uneasness of
the mind of the public in regard to none
tary matters, which calls for the interven-
tiOn Of the Government. / had the OppOr-
tunity this evening, with my colleagues, OF
considering the state of the facts, and we
have determined to address letter to the
Governor and Deputy Governor OF the
Bank of England, substantially correspond
| ing with the letters to those officers in
| 1S47 and 1857; that is to say, that if the
! bank, proceeding on its usual prudent rules
of administration, should find occasion, in
order to meet the wants of legitimate COM
merce, to grant such advances and dis
counts as to require an issue Of notes from
| the Issue Department beyond the limits al
| lowed by law, we recommend that they
l. should not hesitate to make that issue; and
! we undertake, in the event OF the arrival of
| the contingency, to make immediate appli-
cation to Parliament to sanction that pro-
ceeding.
ut is unnecessary now to enter into
points Of detail, but that is the substance of
the letter which will be in the hands Of the
Governor and Deputy Governor of the
Bank of England tomorrow morning, and
which we earnestly hope will have the
| effect of allaying the uneasiness that pre-
walls, and the more so that we do not be-
| lieve that the sentiment of uneasiness has
reference to anything unsound in the gem
eral business of the country, but refers to
matters of definite and specific charac-
| ter. .. .. ...
I'm that respect we are able to draw a
| favorable distinction between the present
crisis and those of former times. One of
| the points of the present crisis is the as
tonishing rapidity with which it has come
upon us, and which has reduced the oppor-
tunity of deliberation given to the Govern
ment within very narrow limits indeed.
! OF course we have endeavored to act ac-
cOrding to the best of our power; and we
| trust and believe that the course we have
pursued will meet with the appreciation of
| Parliament"
The London Daily Ne,cs of the 18th has
the following account of the suspension of
the firm of Peto & Belts:
THE eminent railway contractors, Messrs.
Peto & Belts, have, through the pressure of
the times, been compelled to announce their
suspension. The liabilities are about G4,-
100000, of which G3,S000O0 are amply Sc
cured, with large margins, and the remain
| ing 100000 represent acceptances and ac-
counts for current supplies. All the works
which the firm contracted for abroad are in
very forward state, and arrangements
will be made at once for their due compile
ton. In England nearly all the contracts
have been undertaken jointly with other
powerful contractors, and these works will,
| therefore, not be impeded. It's understood
that the house could have had plenty of as
| sistance this morning for their Immediate
necessities, but it was fOreseen that this
would prove merely a half measure, and it
is fairly considered that no dishonor what
ever can attach to the partners in stopping
payment in time of terrible pressure like
| the present. .. -..- ..I- .,...-.'
'The circular issued to the creditors is as
follows:
"'NO. GREAT GEORGE sTa WEsTM1SsTER, innss
"'We much regret to find ourselves under
the painful necessity OF allowing our ac-
ceptahces to be returned, owing wholly to
the disappointment of the arrangements we
had made Tor their provision, which have
been defeated by the very unexpected turn
which has taken place in the money market
within the last few days. We have con-
sidered it to be the most expedient course
in the interest of all PARTIES that for the
present we should make no further pay
mentS, and await the subsistence of the
financial panic now prevailing; but we are
enabled to state, that having submitted
statement of our affairs to Mr.. j. e. Cole
man so lately as the 23d of last month, we
then possessed a clear balance of upward
of f1,0O0000, estimating our various prop
critics at their then deprecated value! Our
position now is but slightly changed, and
we have. therefore only to solicit forbear-
ance on the part OF those who hold ouren-
gagements, and we trust in very short
time to submit, through Messrs. Coleman
Turquand q CO., satisfactory proposal for
the adjustment and discharge Of our liabii-
tiles. ho2aH loop a'l51d 'l5 otHl, .n' f3a
awe remain, ssl laltas. :y1r a,. at
20 Of "''Your very ohedient servants , A.,
"sPETo & BETTs.'" . |
The Star remarks:
"Itappears that Sir Morton estimates his
liabilities at four millions and fhat of this /