The New York herald., 1866-06-04

me ed,atc causs howe yer. OF tho crsis lay in the
OF the grc.s disce unit house OF overend, Gn
s,orlipg which, in o,Dsr times, would in great par,
have formed, aud which, perhaps, ought 70 have
iSus olrs stock sssks or the country. fhs failure
directed tAs action or the panic against the banks
in London and was 70 Se apprehcnaes % mat tho
agitation IN the rest or the Kingdom where In addition
10 the large deposits in the hands OF the bankers there
are many millions or papsr circulation resting only on
the co nnercial credit or the issuera
IN state Of things 1t could not be surprising that
the reserve OF the Bank Of England heavily affected
Yesterday; and the combined consideration OF
what had then actually happened, and OF what might
course OF the evening, they decided Tor the money
drawn from the banks having been Withdrawn from cir
cnlaton under the influence OF panic, the Bank OF Eng
land might without some new resource, have been un-
able to continue It's accustomed assistance. Thus the
crisis which had been anxiousy apprehebded from this
combination Of circumstance has at last but with
severity and suddenness In regard TO It's immediate
The bank OF England Is prepared TO extend relief TO
the utmost Of its means 10 all cases which are justly do
serving Of its support while her Ma!estys government
in full reliance the eventual sanction Of Parliament
If it should be necessary go beyond the law rs II now
stands signed 70 the Bank OF England their per-
mission 70 hold itself free from the observance q tpe
ordinary limitation its issues II the exlgehties q tho
time require such an extraordinary measure Her Ma
jesty's governments trust thai hy this timely
based sound principles and have been conducted
with proper prndence win be enabled 70 withstand the
failure in the city viii have exposed them Her Majes
tys have TO apprehend that here
Is any general want soundness In tho ordinary trade
Of this country which give reasonable ground for
anxiety ALARM either In this country abroad they
satisfied tho contrary that the present crisis pc
culiar and Unprecedented as 1t is ono OF character
essentially favorable than others which have been
successfully passed through; and that all that s
Quired is that all classes should operate with the gov
eminent in endeavorng alay needless ALARM and In
acting with prudence and forbcarance while 80 much
agitation prevails
II appears her Maeetys government 70 be OF great
importance the commercial interests abroad should
be regard TO what s passing this country
and have therefore, lost time In authorizing you 70
make the government to which you are accred
itsd and generally TO those who have direct interest IN
such matters the view taken by her Majcsys govern
Of the state Of affairs tho active measures
which have been adopted to avert any evil consequences
and the confidence which her Majesty government feel
that those measures will be attended with SUCCESS.
The abatement Of the panic in the city this morning
is her Majestys government trust earnest or the
good result likely attend the measures which they
have authorized the Bank Of England 70 adopt
am, with great truth, your most obedient humble
servant, CLARENDON.