New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-04

I
mp amid the relnements and superiiuons Injuries OF
English society, have to forego their carriages
their riding horses, their opera boxes ana thelr mn
liners bills and to go out into the cold world 10 earn
| their bread as goyernesses Young men with the
| love for extravaganza engendeTed by, University
career and taught from their childhoou nov 70 speu
money, not how to make it, think themselves Happy
| and fortunate in securing desk in some merchants
counting house at salary of ESQ year; OF gree'liy
accept the offer of some kind friend to eve Iem to
means OF paying their passage 10 CANADA, vi SUI
La But these hardships trlfilng compared WIZ
those suffered by elderly people espeeay slmg 10
womenl. and clegrgymen with large families fOI TN IN
the first they have neither the strength nor inc
opportunity of providing for themselves; ana IN me
second, they are controlled by the canon Jaw ~ 'no
| Established Church of England, which iorDlus an
Ecclesastic from embarking in any secular occ t
tion. Consequently poor clergymen ana their Ialn
lilies are compelled to starye on the no
| ing from country curacy or London lncumOency;
And then again. there that large deserving class OF
persons, who have BEEN in their little way, CONSTR
cradle investors in railway securites-tose oeor'
industrious domestic servants-who, year AFTER year
have preferred to put by their little saylngsnsteau OF
spending them, and so to accumulate provision lor
| their old age For these poor people there Is no
alternative but to end their days IN the workouse.
II is indeed impossible adequately to describe inc
misery and ruin inflicted on all grades OF EngIs soci
ETY. byhs utter break up of some OF the larger railway
| companies. Railway shareholders had been In Jhe
habit of receiving for many years WIN pieashgIe.
gularity which lulled them into teehng OF peIIetS
| security, O rate of interest on their lnyeStmentS
| which threw the English Funds into the shade ana
even considerably deprecated their market Vaue ana
| 10 appears that these bankrupt railway COlnPh-
| MES had earned no profits whatever. but had all tins
time been frauduently paying dividends out OF capt.
| tai covering their dishonesty by a system which Is
| technically known as-coOklng the accounts. but
| this is not all These same railway companies had
such enormous monetary transactions with the lolnt
stock banks and finance companies that several Oh
the former and nearly all of the latter have been
compelled to stop payment: the crash eliminating IN
| the stOppage Of the worldwide known banking ana
discount house of Overend' Ggrnsy co ~ COMPANY,
with liabilities amounting to E23,00OOW. The stop
page of this house did not ranspre TIL after BANK
| ing hours. and consequently too late 10 haye any
effect that day. But on the following day. known
as black ITidav day which is still not mentioned
| without n shudder, and which will certainly never
| be forgotten during the present generau.0ih,
one of the most intense panics that the mercantile
world has ever known took possession Of the City OF
| London almost with the break OF day: business
men, their faces exhibiting Signs OF tne ereateest
alarm and excitement, hurrlcdy lett their MONIES lot
| their counting houses some hours before the usual
| time. Soon after the commencement of banking,
| hours as bank after bank closed their doors, ana
| finance companies railway contractors and mercan-
tile houses Of the highest standing one after another
| notified a suspension of payment, every one was
| filled with horror and amazement Inc wnole COM
mercial system of London seemed tumblng 10
pieces. Business was perfectly paralyzed. Men
shrank from the most lucrative transactions ms tney
would shrink from some foul object. Capitalists re-
| fused to lend money any terms, and on any
security. and about midday the panic reached It's
hight when it became known that the public broker
of the Bank Of England had officially announced 10
! the members of the Stock Exchange that the bank
would no longer advance money on consols; winch
|
munity rs being equivalent To money, and IN which
| the five great Joint-StOck Banks generally keep
| several millions Of reserve.
! These JOINT Stock Banks Immediately became So
riously alarmed for their positions, for the bulk OF
| their liabilities what IL termed Deposit Ac-
count 1.-THE deposits of the public at tins time IN Inc
| London and Westminster Bank alone amounted 10
f20OO0COO. for which they were likely to be run upon
ut any moment. 4 meeting of the managersot these
| banks was Immediately held and a committee APP
pointed TO wait on Mr.. Gladstone the then Chance-
Tor Of the Exchequer in Lord Pamorston's Govern
nent for the purpose OF Iiylng DeiGfo Inn IN"
| Mr.. Gladstone, who was by no means Ignorant OF
| what was going on. received them without mo-
ment's delay They explained 10 him the exact po-
sition Of things. and Informed him that II that sec
ton of the Bank Charter Act which regulates the
| issue OF notes by the Bank of England by the stock
| of bullion which il has stored IN its vaults, were
rigidy enforced that they fully believed that every
banking and mercantile house in London would be
| boarding and locking up Of notes which was going
on. MIR Gladstone Immediately saw that their fears
were only too well grounded. and. Chancellor OF
the Exchequer he forwarded an official notification
10 the Governor Of the Bank of England 10 the effect
that If the authorities of the Bank should see NJ 10
break the law Of their charter and To exceed their
legal issue Of notes at that moment the Bank had
only reserve OF notes In hand of about t2O0OOOl
that Her Majcsty's Government would introduce
Bl of Indemnity into the House Of Commons ~
oncratc them from all pains and penalties for so
doing During the afternoon sitting of the Houses OF
Lords and Commons, the Government announced the
action they had taken IN the matter. ana explained
| their reasons for acting. The Ministerial state
ments were received on all sides with marks of the
most unqualified APPRECIATION; aud cheer after cheer
rang through ST. Stephens Hall In way that plainly
demonstrated that the city merchants were not tho
only members OF the community who were affected
| by the panic then raging.
The news of what is known as tho Suspension of
the Bank Charter Act flew ike lightning to the city,
aud the panic over. Men now ceased TO hoard
bank notes knowing that they could get rs many
they wanted. when they required them from the
Bank of England. For. IN thousands of instances
men had made preparations To meet demands upon
them which were never likely TO occur, simply from
n feeling Of indefinite fear Of what might happen
next. Every man gripped ms nearest neighbours
hand u.s. often with tears in their eyes. they thanked
God and congratulated one another that tho worst
was over.
The number Of banks public companies. and mer-
chants that had stopped payment something
frghtfu carrying ruin far and wide. This panic Is
said 10 have involved the country in an absolute loss
of eco COO sum sufficient 20 have paid off one-
quarter of tho national debt of Great Britain and IL
is TO this day exercising most depressing influence
over the trade Of Great Britain.
Tho stoppage of these banks and finance companies
has been If possible more disastrous in its conse-
quences to individuals than tho breakup of the rail-
way companies For, in the case OF the railways tho
loss though nearly total, could go no further than
the sum of money actually invested but in the case
of the Joint stock banks and finance companies the
English law of Limited Liability comes into action,
which law holds every shareholder in public com
pany Of this description liable for year after the
removal Of his name from the register OF sharohold
ers in sum equivalent to the uncalled up value Of
their shares The crash of these companies there
FORE has not only deprived their shareholders of the
means OF subsistence but has also involved them in
overwhelming liabilities which they never can hope
TO meet and which they only get rid of by seek
ing the protection of the Bankruptcy Court. This
has already been done by thousands not from any
dishonest wish to avoid their liabilities. but from
total inability TO meet demands which they had
no reasonable cause 10 anticipate
Such are the sad auspices under which railway en-
terprse in Great Britain may he said 10 have com
peted the first period of ts existence. The dethrono
ment of tho Railway Kings of England is every day