Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-05-23
FROM EUROPE.
The Terrible Crash i'm LOndOn-Banks
Besieged by MObS

LONDON, May l2-The Bank of England yes
terday raised the rate of discount from to per
cent. and charged for special advance 10 per cent
The pressure even at these terms was enormous
and it was only on acceptable bills that accommO-
datiOns could be obtained, Meanwhile more
serious disasters were announced, the most were
these Of comparatively small banks, the English
joint stock for fS0OO,OO0. Then came that of
Peto and Belts for f4OOO,OOO. Then that of w.
ShenstOn, railway contractor, for G290,0O0 FL
Rally, it was understood that the Imperial Mer-
camille Credit Association, whose paid capital is
95O0,00O, and the Consolidated Discount Compa-
ny. with paid capital of f25O,OOO murt with ex-
extremely heavy liabilities pass into liquidation.
The London Times, in an editorial. says if any
thing Justify the suspension of the bank char
ter act, the panic which pervaded the city on FRI
day, May 18th, would excuse the step, although
we believe the reign ofterrOr was approaching its
end and would have speedily ceased had no infrac-
ton of the bank law have been permitted. Even
it is probable the license allowed to the banks
will not be used. 1t cannot, however, be denied
that about midday yesterday the tumut became
uprOarous. The doors of the most respectable
banking houses were beseiged, more, perhaps, by
a mob mbued by a strange sympathy which
makes and keeps a mob together, than by the
creditors of the banks.
Such excitement on all sides has not been wit
messed since the great crisis of 1926. Each man
exaggerated the suspicious of his neighbOr; and
until a report at that time unfounded was circu-
lated in the afternoon, that the Government had
authorized the bank directors to issue five mil
lions additional in notes, it seemed as if the fear
and distrust of the commercial world had sudden
ly become boundlcSs. The statement was base
less at the time. but served to alluy the panic,
which had no solid foundation. Even the
nouncement of PetO's suspension did not revive
the panic in its first intensity. and the statement
ofother stoppages produced little effect.
The London Times adds: We need to be per
suaded that had the Government stood firm, the
panic would have subdued ITSELF and if as we
are to expect, confidence will be speedily restored,
shall attribute it to natural causes rather than
to the interference of the Government. The ac-
| ton of the Government was announced in the
House of Commons on Friday at midnight by Mr..
| Gladstone, who had been engaged all the evening
| with bankers and others, who represented to him
that the panic in the city without par llel in
the financial history of the country.
Mr. Gladstone said he had addressed a letter to
| the Bank of England to the effect that if they
should find occasion to afford relief to the wants
| of legitimate commerce, and make such advances
as would require the issue of notes beyond the
| amount allowed by the act, the Government re-
| commended them not to hesitate in doing so. and
| in the event of that emergency, to make imme-
| diate application to Parliam ent for act Of in
| demnity. Several failures occurred in Liverpool.