Country Banks.
The Times, 1824-05-11T00:00:00

(From the A'anchecxter Gtuardian.) FAILURES AT BURNLEY.-Ailiong thc failures which we al- luded to last weel;, as baving taken place at Burnley, is the fimi of Messrs. J. T. and T. flolgate, bacnkers, whose debts we have heard stated as high as 300,0l00.-.a sunm so enormous, that, coAnsidering the limited extent of the money transactions which the business of such a place as Burnley woould legitimately require, we should tlhink will be found much beyond the amount actually owing.* But whatever may be the amnount owing by thecse and the other parties who have unfortunatelystoppel payment there, it is certain that extensive and severe calamity to the industrious population of that district has been the consequence. The failure of a bank is always a source of great distress, and especiallv when it occurs, as in this instance,in n isolated situation, where there arenosimilar estaM]ish- ments; for a bank so circumstanced, if it enjoys a tolerable share of credit, must, in some of its ramifications, be connected remotely or directly with alD the business of the iace; which, thus depending upon it, is exposed to ruinous convulsion from any interraption to the regularity of its payments. It happens, too, that a bank in such a situation, is intrusted with numerous small sums, which the people within the range of its influ induce to deposit. either from confidence in its soliditr, or the dangerous allurenmentof an unusually high interest. Several instanes have recentlv oc- curred, which prove that particular banks have been exten'sively selected by persons of small property, on accoont of their allowing a higher rate or interest than thc rate generally allowed ulpon deposits- a principle of business, in a banker, which shoultl always excite the suspicion of the public, as clearly indicating weakness and neces. sity, if not insolvency. Of a banker who allows five per cent. On deposits, when the general rate is only three per cent., those who have money to lend will find it prudent to say, as Shaks- peare says of him who hath no music in his soul, " Let no such man be trusted." We make these remarks without any reference to the principlesof business acted upen bv the Burnley bank, for we do not know that there was anv thing iri those principles to suggest them: the experience, however; which las been furnished bv other instances of the failure of banks, shows the propriety of giving the public a plain and intelligible caution on this subject; and we shall derive considerable pleasure in finding that other journalists deem it of sufficient importance to co-operate with us in enforcing that cau- tion. Of the distress produced at Burnley by the failures there, seyeral afflicting accounts have been sent to us. The loss and suffering, however, would have been dreadfully aggra. vated, if the bank had unfortunately established through the dis- trict a local currency by the issue of its own notes. In that case every individual in the neighbourhood, however humble, must have been diretly and personally injured. Wte advert to this, because we arc really nxious to avail ourselves of every opportunity to impress upon the p)ublic the necessityr of extreme caution in estimating the responsibslitv of banking establishments, and to wam them of the evils concomitant on admitting amongst them any issue of the notes of such establishments. a We havesinee been Informed, on good authority, iwhat we have sincere pleasure in eomununicatinig, that the amount of Messrs. Fiol- gates' cireulation isonly 80,0001., and we consider this fact as a pre- sumption iD favour of the opisiion wre entertain that the reuorted amount of their whole debts has been overrated. COUNTRY BANVKS.