Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1866-05-22
Morning Edition.

not to hesitate in doing so, and undertook
in event of that contingency to mako i'm
mediate application to Parliament for an
act Of indemnity.
Parliamentary proceedings are unimpo-t-
ant.
The Morning Herald says at o very large
meeting Of Lord Derby's supporters, on the
18th, it was resolved that no opposition
should be offered to the second reading oi
the reform bill for the redistribution Of
seats, and that the bill be allowed to 60 into
committee.
The cholera continued to prevail among
the passengers of the returned steamer Hell
vetia, with few additional deaths.
Rumors were circulated in the course of
the day Of severe run on the bank of
Barnett, Hoover, HonbuIy 4 Co., but they
wers entirely without foundation. There
were runs made upon two or three other
benks, but being well met, soon subsided.
Both in London and in the country ample
preparations were very generally made for
such contingencies.
In the Liverpool cotton market there was
increased panic at the commencement on
Friday, bat less unsteadiness at the close.
At Manchester there was q complete
panic at Glasgow the iron brokers resolved
to- suspend business TIL Monday. In the
produce markets at London prices were al
most wholly nominal.
Taking into account thatdepreciation has
simultaneously occurred in English funds,
railways and foreign securities, the dimuni-
ton in the market value of this property
since the beginning of the year may be con-
sidered to reach ESQ, ,000, 900, to say nothing
Of the losses on cotton, cotton goods, iron
and other articles.
The Great Britain financial panic culmi-
mated late on Thursdsy afternoon, the 10th,
in the suspension of Loerend, Guerney &
Co. The business was converted in August
last il to limi.ed liability company, with
nominal capital of five millions sterling,
of which million and half was paid up.
The liabilities are stated at from ten to twelve
million pounds sterling. The break down
is attributed to heavy speculative sales Of
shares, which force them down from ten
premium to discount Depositors began to
get alarmed ,and the draw on them was very
severe. Application for assistance was
made at the Bank of England, but the Gov
ernment declined to grant any on the ground
that it would be vain in crisis like the
present to assist one establishment unless
they were prepared to help other appliea-
tons as well. It WAS toolate to make call
on the shareholders, or take any other steps.
The doors of the establishment were conse-
quently closed. The failure does not COM
promise the Guernsey Bank at Norwich.
On the following morning, Friday the
11th, the widest excitement prevailed in
financial circles in London, Liverpool and
other centres of business was almost sus-
pended.
The Times city article of the 18th says !:
The Bank of England yesterday raised
the rate of discount from to per cent.
and charge for special advance 10 per cent.
The pressure even at these terms was enor-
nous. 1t was only on nunexeeptionable bills
that accommodations could be obtained.
Meanwhile additional and most serious
disasters were hourly announced. First
was that of comparatively small Bank
or English Joint Stock for 10000 sterling,
then that of Peto & Belts for four millions
sterling, then that of W. Shrimpton, Rail-
way contractor, for 5000, 900, and finally it
was understood the Imperial Mercantile
Credit Association, whose paid up capital is
half million sterling, and the Consolidated
Discount Company, with paid up capital
of quarter of million sterling, must with
extremely heavy consignments pass into
liquidation. During the day the most in
tense anxiety was manifested to ascertain
if any step was being taken by the lead
ing merchants and bankers to represent to
the Government the extent of the crisis,
and a false notification in the stock eX-
change to the effect that an extra issue of
bank notes to the extent of ten millions
had been authorized, caused at one time q
general rebound in prices.