The New York Herald Newspaper, November 27, 1857, Page 2

2 jPromineat on ail financial points. Bank of England notes | ‘Bre not, legal tender in Scotiand, and thus it is impos: Die even to partially the inconveniences of the case | by sending the required remittances in that form. The Tact of ‘about two thirds of the Scotch ciroulauion be. in notes under £5, coupled with the known habits ot the people, especially of the operative classes at Glasgow, in using the banks as places of deposit for their savings, will account for any popular disturbances that may now bave been threatened. Such move: ments, however, ure more evanescent and more easily met than those of larger capitalists, and, if these should not take fright, the whole attair will’ probably be of short duration. It appears that the rate of allowance of the Scotch banks for deposits throughout all the recent ad vance in the money market has pot been raised above 4 percent, although the changes in the rates of discount have kept pace with those of the Bank @ England, In deed, they were recently charging 8% per cent when the Tondon rate was 8. The reasons assigned for keeping down the allowance for deposits are, that the banks are considered to offer te only means of investment ap. proaching in safety to mortgages or conols, aud that as the former can scarcely be obtained, and consels pay a still lower interest, 4 per cent is a sufficient temptation. Annexed is the circular issued by Messrs. Sanderson, Sandeman & Co. announcing the necess'ty for their suspen- sion. The liabilities of the house to depositors, by whom bills are held as security, are stated to be between three millians and three millions and a half, while those to other parties may be about £200,000. The great majority of the ills held being perfectly good, and sugh as would be dis counted by the Bank of England, the depositors will not | in these cases sutter any inconvenience, and the effects of | the stoppage will therefore be very limited when com. | pared with the magnitude of its appearance. Ten years | ‘ago the house suspended during the crisis which then raged and in less than five months it resumed business, Mr. Sandeman being admitted as @ partner An equally fa- yorable result is confidently hoped for on the present occasion. The principal difficulties of the firm have arisen from the failure of the Liverpool Borough Bank and Dennistoun & Co., but from neither of these sources can any ultimate deficieucy be much apprehended :— Kine Wituam Street, Nov. 11. Ttis with extreme pain we have to announce to you that our house is under the necessity of suspending its business—an event which was wholly unforeseen and unexpected by us ‘The pressure of the times and the recent lamented death of our senior partner, Mr. Sanderson, have left us no alternative but to take this step, which we trust will be but temporary. The accounts are being made up with all despatch, and ina few days they will be in a state to be submitted to those interested. We are, &c., SANDERSON, SANDEMAN & CO. The applications at the bank to-day for discount were again extraordivarily numerous, but thia feature loses much of its importatice from the circumstance that it is chiefly from parties oversupplying themselves. These persons, when they get the inoney pay it into their bankers’, by whom at the end of the day itis again paid into the Bank of England. Many merchants, in order to gratify an ignorant impulse of caution, have now at their bankers’ two or three times the amount they ordinarily keep. The reason they give is they “do not know what may happen.” They might know, if they would take the | trouble to. reason, that the foreign drain hay ing been almost wholly checked, there can be no increased demand for money, ¢ occasioned by their own fears and by any tempo- rary contingency like the Seoteh panic; that under such circumstances, Whatever is taken from the bank must always within a few return to it; and that under any circumstances the bank will continue to afford at the fair market price every accommodation it would ever have granted cven in the calmest times. Tt was announced this morning that the Bank of France have adopted new rates of discount in place of the 73, per cent fixed on the 26th of October. Henceforth the charges are to be 8 per cent for bills not having more than 30 days tormn; ® per cent for those under 60 days, and 10 per per cent for those between 60 and 90 days. A decree is shortly expected to modify the law of 1807, which prevents bankers and traders generally from charging more than 6 per cent. .¢ Foylish funds opened this morning at the advanced quotations attained yesterday after reguiar hours, but the market presented an uncertain appearance, and subse quently experienced various fluctuations. The first quo tation of consols for money was 894% to 34, from which on the publication of the news by the India mail there was afurther improvement to 883, to 5. The stoppage of ow Bunk then caused a reaction to 894, Te Was @ tendency to a new rebound, when the suspension of Messrs. Sanderson & Co. transpired, and produced a further sudden depression, the final transac: tions being at 884; to. For the 7th of December the last price was 8% to \. During the morning loans on gov erpment securities were offered at 9 per cent, but it was afterwards difficult to obtain them at a higher rate. The agents of the Scotch banks were active in taking all that couid be bad. During the day two failures were an- nounced in the Stock Exchange, but they were of insig. nificant amount, Bank stock left off at 209 a 211; redu 871, to 4; new three per cents, 87 India st 2104 213; India bonds 50s. to 40s. discount, and exche quer bills 25s. to 20s. discount. In the course of the afternoon a report was circ that the Australian mail steamer Emeu had arrived at with nearly amillion of gold. The actual sum is £526,000, and this opportune amount may be expected to > % reac: Southampton by the Australasian on the 18th or | 19th inst. | ‘The corn market was dull this morning, with a tende to lower pric gto the removal of the against the expo the Paris Bourse this and 66f. 7c. for the end of the mouth, showi ofan eighth. At Vienna there is great heavines premium on gold has incressed At Hamburg the rate of discount has adv ced to 10 mention the failure of M. Guimaraes & South American trade, with liabilities in the m the London Times (City Article) Nov. 13.) The Bank Charter act is abrogated. Its fate at the se m the same as atthe first. The orted to the notification that to extend their issues on approved seen) ities without regard to the amount of bullion in their vaults, at a rate of not less than ten per cent Although the announcement will give immense relief from feare which were rapidly spreading, there cam scarce ly be an ishman who will not receive i with deep re gret from the humiliation it inolves. It must have re. sulted from one or two causes—either blin inherently unbealthy condition of business whi ed oor merchants from sustaining themselves againsta rate of discount such ax is borne at Paris, Hamburg, and a number of other centres of commerce. In either case the eon is equally lowering to our fame as @ mercantile nation. It factory to believe that the ms neither asked for nor recommended by the directors of the Bank of England, or any delegated representatives of the leading mercantile or banking firms. Atthe same | time, in justice to the government, it must be admitted | that tke period had obviously arrived when protective | steps of some kind had become absolutely necessary ‘The position of the Bank of England and the private banks wax vever one of higner contidence, but the appre bension was evident ov all sides that a withdrawal of de powite from the discount houses and joint stock banks might commence instant and totally cripple their power to cout ninodation; that the | which their reserve n «weeping away of nearly for Ireland and Scotland, could in has bi two mil such case was not to be considered ax having we were in & position in which one « ilate op its being kept off even for a sin hour But there were remedies available other than that of breaking and destroying the law—for @ law which has teen comdemned om each occasion of trial must be looked upon as destroyed, The state to which we bad come brought about by any fault of the governm mmunity at large. and it was for thove wh means of extrica d not w they on had not ’ erted measure situation t plain capital they ation to an almost unlimited ex roportien of the bills. thus nego have granted accotr ding the large » the discount establi« t on the strength the responsibili the legitimate character of the transac 1. “Of course we are safe with the ¢ Liverpoo! Borough Bank,” is the ery of its bosinese may be doubtful, but liable = their = last should we hesitate with the Western Bank of Scotland? Among its pro prietary are two or three names which are good for ax many millions.’ But how is the money obtained which is thus freely granted by the Loudon houses? The security relied upon ix the ultimate respon sibility of # certain number of shareholders scattered over a large district, aud which, so far from having any thang in common with a sound banking security, is wholly available in emergencies, and can never be realized except threugh protracted legal processes; but the mo: ney advanced consista part at call with the discount hogses, of at notice ranging perbaps toa month with the joint stock banks. Here, then, isa deliberate Dreach of every recognized bank ing principle, and jt is ene that on each occasion of trouble has led to the same results. The London money dealers cannot have been insensible to the peril; but oadorsement of t “The characte its farthin ey their pract arry on the system until ite inevitable couneque joye themselves, and then to seek safety by cutting off facilities” and throwing the applicants upon the Bank of England. Then we have deputations to the Gover threats that if some is not done the w f the country will be ter the requisite amount of alarm has been the suspension of the Bank Charter act. If, however. the example of 1847 had never been set these persons had been taught to feel that, happen what might. the laws of the country—in the full knowledge of which they bad undertaken all their operations—would be rigidly kept violate, not only would the public never have been dis torbed by predictions of coming ruin, but every safeguard ty could devise would have been secretly pre ucee af created, for that ingenu pared to provide for any casualty. If the discount house and any of the joint «tack banks apprebended a withdrawa ‘their deposits to an extent to cause public incon venien © to make common cause te guaran: nd if any nominal or contin it aus to bear the diseredit it them ton the Bank of England and the announced to the public had combined b that, not being able to fo had agreed to suspend for the deposits, and that to meet the ssory noves at three | st, and # a by | the principal | have threatened they of the iasner: tueir haying pt such as may be | deposits lodged for the most | NEW YORK HERALD, FRIDAY, NOVEMBER 27, 1857. thod would have fixed heea obliged to resort to such an uses that them in their right position tn relation to the had led to it aayacharacter vas to, be damaged, was much more picasant that it should be ie Bank of Evgiand, the country, and the goverament ; and thanks to tne complaisance ‘of the latter, they bave succeeded ix putting it ou that foot , be sure they took care that the matters id go to wo int at which the Cabinet would have litle choice. ere was, however an alternative which, although ually unjust in being an act of government relief for which there was no true claim, would still have prevent- ed a sacrifice of principle. An issue of one pound notes could have been adopted without any infringement of the docirines on which the Bank Charter act is grounded. The fact that the permission for the circalation of such notes terminated in 1828 is not material,as ihe law could have Leen set aside on one point as easily as onanother. This plan, however, seems not even to have been considered, ‘After ten years’ experience, therefore, and all the en- lightenment that was thought to have been attained, we | have been thrown back at once to the discreditabie posi- tion we occupied ip the last crisis, and all the admirable conduct of the Rank of England and of the respectable mereantile public has been rewarded by a proclamation to | every speculator or reckless money lender who may | Choose to disregard the piainest principles of monetary | science, that he witl always find his safety in the very panic which bis own misconduct bas promoted, and that the only persous who will be brought to di it or confusion wi! be those who have prudently guided them. | selves by the law, aud have relied throughout upon its in- violability. rity ‘The kuglish funds opened this morning with an unsteady appearance, although the announcement of £260,000 of Australzau gold by the Avon, in addition to the £525,000 expected by the Australasian, produced a favorable effect. Consols for movey, which left off yesterday at 8834 to X, were first quoted nominally 88% to 89, but the brokers who act for the principal banks were large sellers of stock, and the dealers, from the scarcity of money, being indis- posed to buy, a fall took place to 883%. A rumor was then circulated thet a government letter relaxing the operation of the Bank Charter act would soon appear, and @ number of heavy speculative purchases having been made a rally ensued to 89. Sales, however, were renewed, and it is estimated that the whole amount of stock thrown upon the market during the day was at least £600,000 or £700,000. Under these influences the price again receded to 883% to %, but at half-past 3 the bank broker an ‘reasury, and there was an nounced the fetter from the immediate advance to 582% to 894, The current difference between the price of consuls for mouey and account was 1 per cent, and some of the principal dealers gave at the rate of 15 per cent for loans till December. After regular hours there was a further improvement, and bargains were effected at 894 for money and 9039 for the account Bank stock left off at 209 to 211; reduced 8745 to: new three per cents, 87% to 88; India stock, 210 3; and India bonds, 80°. to-403. discount. Exehequer bills ex perienced a great fall, and left off at 49s, to 25s, discount. ‘At the bank the applications for discount were enormous. In fact, to-day and yesterday the pressure was heavier than at any time in 1847. Toarld toit, the country banks were drawing notes largely as a measure of precaution | ‘The government letter tothe bank does not specify what is included under the head of approved securities besides commercial bills. It is thought that exchequer bills will be received butnot stock, as forthe latter there is already a ready market to any amount. Nothing has transpired with regard to the void of £410, 859 created in the Scotch note circulation by the failure of | the Western Bank of Scotland and the City of Glasgow | Bank, but it is assumed that steps will be immediately taken to authorize its being replaced by additional issues | from the other establishments, i The final quotations of the French three per cents on | the Paris Bourse this evening were 66f. 5c. for money, and 66f. 60c. for the end of the month, showing a decline of an eighth. Itis believed that a further amount of from 150,000 to 200,000 sovereigns was despatched to Scotland and Ire- land to-day. ‘The suspension was announced his morning of Mesars Wilson, Morgan & Co., wholesale stationers, with liabit: ties estimated at about’ £40,000. A circular was also issued by Messrs. Fitch & Skeet, provision merchants, whose liabilities are stated at £55,000, and who are since said to have obtained an extension | from thet creditors, who have taken bills at two, four and six months, to bear 5 per cent interest At Laverpool, the stoppage has taken place of Messrs T. B. Coddington &Co., iron merchants, counected with New York. ‘A meeting of creditors of Messrs, Haly & Co., whose ion Was announced on the 30th ul ndee Advertiser announces the failure of Messrs, | Mackenzie, Ramsay & Co., merchants, with liabilities to | the amount of £60,000. The North British Daily Mail states that t Messrs. J. Monteith & Co., merchants and calico of Glasgow, appears in the list of bankrupts in the Edin burg Gazette of Tuesday. THE GOVERNMENT AND THE BANK OF ENGLAND. A Cabinet Council was held November 12th at the official | residence of the First Lord of the Treasury in Downing street. The Ministers present were—Viscount Palmerston, the Lord Chancellor, Far! Granville, the Marquis of Lans. downe, the Earl of Harrowb: | of Cla Phancellor | Wood, ight Hon. R. Ver Alderley, the Duke of Argyll, Baines. to to2 in Smith, Lord Stanley of and the Right Hon. M. T. | the Bank of England:— Dowsine Street, Nov. 12. 1897 GystieeN—Her Majesty's goverument have poncerd the serious consequences wh » recent failure ain joint stock banks otland, as well as of certain large mer fly connected with the American trade Th nd distrust which have resulted trom these e ithdrawal of a large amount of the paper horized by the existing bank acts, appear r Majesty's government to render it neces sary for them to inform the Bank of England that if they should be unable inthe present emergency to meet the demands for discounts and advances upon approved secu rities without exceeding the limits of their circulation pre scribed by the act of 1844, the government will be pre pared to pi ‘amnent upon its meeting a bill of indemnity for any 0 issned, In order to prevent this temporary relaxation of the 4 extended beyond the actual necessities of the goverpment are of « ton the bank terme of discount should not be r 1 below | their present rate. Her Majesty's government reserve for future considera. tion the appropriation of any profit which may arise upon issues in excess of the statu Her Majesty's government s aintaining the letter of the law, even » mercantile difficult s which have such a mea. ecessary, and upon the discretion and prudence of the direc ntining its operation within the strict limits of be tors fe the exigeucies of the cage, We have, & PALMERSTON G. C, LEWIS ‘To the Governor and Deputy Governor of the Bank of England | [From the London Times (City Article) Nov. 14.) ‘The condition of the various markets to-day has shown a considerable resumption of steadiness, although there has been no tendency to great canfidence or a rapid re | vival With the return of gold from Scotland which may | sp be expected to commence, and the delivery of | the large amounts announced from Australia, there caa | scarcely fail, however, to be a decided improvement, and an impression is ‘entertained that tbe Bank Charter act, which bad not been practically overstepped up to last evening, may still, as in 1847, be kept free from actual | infringement. Consols for money, which left of Inst evening at 894;, were Grst quoted 801% to %. and there | appeared to be no particular pressure of stock upon the market, Lut various fluctuations soon occurred, and at one ume the price teuched $9. From this they went | and the final operations were at 50% to , and 894 to X for the th of December. me inthe early part of the day loans on | stock were in demand at 10 per cent, but subsequently the rate ranged between $ and 10. Bank stock left off at | 20034 a 212; reduced, 8* to 44; new three per cents, $85 | to 4) India stock, 210 to 213, and India bonds 50s. a 40s discount, Exchequer bills experienced a considerable re: covery, partly from an anticipation that a large funding | may be proposed on the assembling of Parliament, at the beginning of next month The arrival of the North Star, with New York dates to the ist of October, was tele nents in London, who, in | graphed in the afternoon, but not before the close of busi- | ese. The stat | gradually reco ported, and tht firm connecter | Ast of Nove packet At the Bank of England today the a count, although far beyond the average ents were thatthe money market was ‘ing, that no new failures had been re Winslow, Lai & Co, a large banking with the West, were to resum: ber, the day after the depa weations for dis vunt even of ate as compared with those of th In the open mar ket the best bills were negotiable at 1034 per cent in the morning, and at a later hour transactions might possibly | have been effected at the bank minimum. The drain of gold to Seotiand has ceased, but it is be lieved about 100,000 sovereigns were despateled to day to Ireland Iu the foreign exchanges this afternoon the rates were generally the same as last post, and on the whole « better feeling prevailed In the corn market thie morning there were scarcely any transactions, but prices were nominally 2. to Ss low The report of the Liverpool cotton market for the week shows a further fall of #4" to 1d. per ib The final quotations « French Three per Cents on the Paris Bourse this even og were O6f. 36¢. for money, f6f. 60e. for the end of the month, showing another de cline of an one-eighth. On the Vienna Exchange the pres sure continues to increase The suapension has oecerred of the respectab Draper, Pietroni & Co. Thetr buviness was connected chiefly with Italy and Russia, and their |i os are esti nated at about £300,000. Of this sum, however, a const derable portion—perhaps half—consiets of letters of credit granted to houses of high standing, who will doubthess at onge withdraw them. The suspension was likewise announced of Messrs. Bow man, Grinnell & Oo., of Liverpool, engaged in the New York trade, It is stated that it will be only temporary and that it has arisen from a sudden lock-up of a consider able sum in the Boroogh Bank, where they kept their ac count, the impossibility of selling any description of pro ce. and disappointment in money remittances from the United States. The liabilities are not large. and are wm derstood to he wholly upom bills of exchange drawn in New York. Mr. Grinne!l, one of the partners, lately sail ed for that city to basten home funds, and an assurance is expressed that when the acceptances are returned there with protest they will be promptly provided for Messrs, KR. Bainbridge & Oo., in the American trade have also stopped, but their liabilities on this side are thought not to exceed £90,000 of £40,000. Subjoined is their cireular firm of 14 Size Lane, Now. 12, 1857 Sin—TIi is our painful duty to inform you that, in conse quence of the suspension of Messrs Dennistoun & Go whose bills we have taken to a jarge amount, and of the inability of our house in New York to make remittances Exchequer, Sir Charles | The following letter was addressed to the Governors of | with the result on Wednesday, the 18th inst., when Ei ccnen at 6 meeting of the creditors will be’ taken upon th» best course to be adopted for the realization of ro our assets in the United States, and the ments. We are, & R ¢ suspension of t at Swansea, and of & ©o., Nottingham, is in letters from those places. A rumor was strongly circulated to-day from Glasgow, that an attempt is in to resi the Western oe oe Sean the purpose, probably re-open on Mon- day. Many persons doubt the statement from the fact that a millon seems ap inadequate sum for the demands that would have to be encountered. A similar arr: ment is also alleged to be contemplated with regard to the City of Glasgow Bank. ‘The quotation of the rate of e: from Bombay by the present mail is apparently less favorable to the extent of about a half per cent. ‘The figures presented in the monthly return of the Bank of France to-day seem to have created heaviness on the Bourse, but are not very much worse than had been anticipated. The bullion, which in the previous account £896,000, has experienced a further reduction of £1,440,000, and the sum now held is £7,680,000. This, however, 1s £310,000 in excess of the total at the Bank of England, according to the return pub- lished this eveni Atthe same time there has been a decrease of £968, in the note liabilities. The discounts present a decline of £807,000, but in the deposits there is apparently au increase of nearly £2,500,000. The govern- ment balance has fallen off £602,000. In the advances on rentes there bas been no alteration, but those on railway shareshave been augmented £167,000. The premiums paid for purchases ou gold, which last month amounted to £10,120, have been on this occasion £16,000, The bar silver brought by La Plata has been gold to- day at 61d. per oz., showing a decline of 3d. from the price realized for the previous ‘arrival. In the produce markets during the week business has been almost suspended, and prices are again generally lower. ‘The raising of the bank rate of interest to 10 per cent on Monday, together with the numerous announce- ments of failures, tended to increase the feeling of un- easiness noticed in the last weekly report, but to-day there appeared te be less disposition to force saies. The business in sugar bas been upon a very limited scale, at Is. to 2s. decline. Consumers are now quite bare of stock, and this mormiog there were symptoms of a revival in the demand. Further supplies bave arrived from the United States. In coffee, coloury plantation Ceylon has receded 2s. to 3s., but the market now presents a firmer appearance. Native is almost neglected. Scarcely any business bas taken place in tea. A public sale of about 700 packages, ‘without reserve,”’ attracted some atten- tion, and t de purchased at fair prices. Ultimately there was a rather better feeling in the market, and seve- raiparcels that were offering have been withdrawn. Common congou is more inquired after. Cocoa has experienced a decline of about 28. to 33. A_go- verntment contract for 100 tons is declared for the 17th inst. In rice the few transactions reported have been at slightly lower prices, and the market, although 8s. 6d. per wt, below the late highest point, is still inactive. Salt- petre has been purchased only to a very moderate ex- tent at about 2s. to 3s. under previous quotations. Fine Benga! last went at 45s. per ewt. A considerable portion of the stock appears to be in strong bands, Nearly all descriptions of spice have suffered a further depreciation where holders have evinced any desire to realize. Cassia lignea is offered at a fail of nearly 20s. per owt. in conse- quence of arrivals from the United States. ‘The return from the Bank of England for the week end- ing November 11 gives the following results, when com- pared with the previous week:— Public depos ts -£5,814,659 Increase. Other deposits. 12,935,344 Increase. Rett.. ..60056 8,364,356 Increase... 58,777 On the other side ot account :— Government securities, .£9,444,828 Decrease. Other securities... 26,113,453 Increase. . 3,486,202 Notes unemployed. ‘967,710 Decrease. 1,197,605 The amount of notes in circulation is £20,183,355, being 4 decrease of £83,390; and the stock of bullion in both de- partments is £7,170.508, showing a decrease of £1,827,272 when comparea with the preceding return. ‘The extreme pressure which has prevailed in the money market is indicated by the unprecedented increase of £3,485,202 in the private securities, while the extent to ‘hich the amounts thus drawn out have found their way back to the bank is shown by the increase of £442,715, and £1,024,674 in the public and private deposits, respectively Sales of stock appear to have been made to the extent of 6, and the reserve of notes has been reduced by 605. The present reserve is £219,030 less than the t'point to which it fell in the panic of 1847, aud the stock of bullion is now £1,142,183 less than at that period. AMERICAN SECURITIES. [From the London News (City Article) Nov. 14.] Railways. Cloring Prices.| Business livaes Central 6 l- Do. T per cent, 1875... 141 Do. do. Free land, 1860. _ 13% 12 13 dis. ' per cent *60) Mich. 5. &N. Ind. (sink: fand), 1885..... Ta 62 ~ Do, $100shares..... a w fs NY. Contral(sinking fund) | 66, 1888...0..66000eue.| 76a 80 BY KK Do con. 1804) 86.2 99 oe Do $100shares.| 70.0 74 ae | N.Y. : con, "62 pe 12 ' Do. do. Ww a - Do. do, 34 mtg. 1883! 60 62 - Te. do. (*. fund) °75| 40a 50 - Do. do. $100 shares.| 10a 15 i Obio and Penn 7 par ct come bonds, con., 1872) —a | Ohio and Miss Ist. bonds Penn. Cen. bda Ist m. con.| Do. do, 2d mtg. ,(stg.) | THE SUSPENSION OF THE BANK ACT— OPINIONS OF THE PRESS. (From the London News, Nov. 13.] Commerce breathes again. For the second time the provisions of the Bank Charter act have been suspended. Yesterday afternoon, to the inexpressi- ble relief of all commercial circles, it was officially announced that her Majesty's government have au- thorized the Bank of England to disregard the tram- mels imposed ir Robert Peel's act and to issue notes, if necessary, to an unlimited amount. The conditions imposed are, that the advances must be n approved securities,” and at a rate of discount not less than 10 per cent per annum. Jn other words, the mode of relief is exactly the same as that adopted in the panic of L847; the only difference being that the price now fired for the new issue of notes is two cent higher. ‘he rate at which relief is afforded is not the important thing; the grand point is the cer- | tainty that upon certain terms relief can be obtain: ed. “What commerce stands in immediate need of | is money, and for this it is ready to pay any reason: able rate. What it regarded with extreme dread was the prospect, daily drawing nearer, of an almost total suspension of the requisite ' supply. Considering, however, the absolute necessity which existed for the instant adoption of some measure calculated to pour oil on the troubled waters of finance the decision goes by gcrument is char- acterised by a happy boldness which will doubtless he attended with the most beneficial results. We differ from and condemn Lord Palmerston’s policy on many points, On the present occasion we unhesi- tating!y proclaim that we are grateful to ministers for the courage and alacrity with which they have re- onded to the national ery of distress. At the same time it must be kept in mind that government had little choice but to act as they have done. This is not the first time that England has awoke to find that she has been slumbering upon an incipient earth- quake. We are too sincerely grateful for the escape of the country from a great danger to entertain any feeling of animosity towards the party who, whilst acting doubtless ‘to the best of their judg- ment, have labored hard to close the safety valve; but we must tell the supporters of the Bank Charter act that they brought the nation, even so recently as yesterday, to the verge of an explosion which might have shattered the en- tire financial edifice, and carried deep distress into thousands of households. The secret history of the | present—we trust we may say past—financial crisis will probably never be written; it is not meet that it should—-at least until the return of calm and pros rous times, when its full bearings may be safely dis cussed, and a moral may be pointed for future mi dance. The too strict adherence to a mere theor: is brought the country, within the last few hours, to the verge of a monetary crisis as perilous as that wit- nessed mm 1847. The ordinary channels of monetary accommodation were rapidly becoming choked up. The community were rushing to the bank for mo- ney to an unprecedented extent; and each bor rower, on obtaining an amount far in excess of his actual requirements, refused to release it. The bank was being rapidly drained of its banking reserve, and this was the moment selected by a leading contemporary for the flippant remark, that when the great institution in Threadneedle street had parted with all its notes, it would still be able to goon discounting with the funds falling repayable from day to day. Is the Times blind, or does it know that the occurrence of such a state of thit would in- volve the stoppage of half the commercial houses in the kingdom’ And now for a word of sober, serious caution to the mercantile community. By the cou- rage and segacity of government an imminent and great danger bas been surmounted. The public must now do their part towards the restoration of confidence. It was only when the Bank act stood in the way, damming up the supply of money, that there was any excnse for alarm. It is now placed beyond doubt that the bank has plenty of notes to issue. Government have boldly, yet most judicious. ly, refrained from fixing any limit to the amount of new notes. Every holder of “approved securities” may obtain as much ax he chooses to ask. There is, consequently, no longer any public reason wh holders of money should decline to lend, for their market is at its top price. All will itless be free lenders, and we shall be greatly disappoint- ed if the excessively heavy applications at the bank do not linmediately dlucken.. There is even strong ground for doubting whether the provisions of the act of 1844 will be actually infringed, of government be compelled to apply to Parliament for an act of indemnity, The resources of the country are as vast as ever; the money in hand is far larger in amount than at former period: and trade is becoming contracted; the external my at the present time, we are under the necessity of sus pending business ve beg further to inform you that our books have been » hands of Mr Jay, the accountant, who wil mediately Commeuce bis iavestigatiou. He will be pre drain of gold is checked; bullion is flowing in freely from Australia: the American advices are al- together more cheerful: and the flow of sovereigns to Scotland ought to produce nothing more than | they are in , and will assuredly ere long find their houses which has been stricken by the American em- , losses sustained (i the hear; in e wii te meeats HE. mumie of ttring firme. In this, however, there is nothing in any way sug- and it must not be forgotten | ive of . at the money which is dropped by speculators in pots is pi up ie “3 the consumer. Now that e storm has swept away the trammels imposed by the Bank act, is every d for legiti- mate confidence; and the people of England will not be true to their reputation for sobriety if they do not scout every provocative to panic. (From the London Herald, Nov. 13. Yesterday we commented upon a remarkable and ably constructed document, by the French Emperor, and stated that it was calculated to inspire the minds of our neighbors on the other side of the Channel with confidence, and thus in some-measure lessen the intensity of the monet crisis through wiih arenes, like Lg rest of the di nations, is at present passing. marks were penned a communication, si; Premier and the Chancellor of the Exc! addressed to the Governor and Deputy of the Bank of England. Its purport was to authorize these monarchs of the financial world to extend the issue of Bank of England notes. Thus, as in 1847, it has been found necessary toset aside the act of 1844, in order to relieve the pressure upon commerce. step taken by the bgorecrunens meets with the appro- bation x one oe Seaneint Seo, al opposition ni 80 cane by certain rial seers has seri- ously damaged what little cre they enjoyed as authorities upon matters of finance. our own country the commercial crisis has already produced most di is effects. Several large firms, report- ed to have possessed large balances in their favor a few weeks since, have been compelled to stop pay- ment, and the position of others is critical in the ex- treme. In Scotland, in particular, the panic has spread with fearful rapidity. The failure of the ‘estern Bank, followed by that of the City of Glas- gow Bank—both extensive concerns, with numerous branches—has led to an almost total prostration of trade in that part of our island. Upon the causes of this crisis we have already remarked, and shall in- vestigate them more fully at another coeetaly. our purpose at_present being to deal solely with its effects. The diminution in specie, the high rates of discount, the numerous failures, rendered it abso- lutely indispensable that the directors of the Bank of England—that fountain head of commercial credit in this country—should be invested with certain discretionary ers, to be cautiously exercised as emergencies may render necessary. The manner in which the law has been tempo- rarily suspended appears to meet the exigencies of the case. Ministers state plainly enough:—“ In order to prevent this temporary relaxation of the law being extended beyond the actual necessities of the occasion, her Majesty’s government are of opinion that the Bank terms of discount should not be re- duced below their present rate.” Whether, by an; alteration in the law, commerce might be benetitted, is of course a matter for future consideration. The committee appointed to investigate this question have not yet brought their labors to a conclusion. Under the circumstances, therefore, it would be im- possible for ministers to rush into the other extreme, and attempt, or even appear to sanction, a perma- nent alteration of the law. Such, however, is not their intention. We learn from this document:— “Her Majesty’s government are ly pressed with the importance of maintaining the letter of the law, even a time of considerable mercantile difficulty; but they believe that, for the removal of apprehensions which have checked the course of monetary transactions, such a measure as is now contemplated has become necessary, and they rely upon the discretion and prudence of the directors for confining its operations within the strict limits of the exigencies of the case.” It is evident enough that a commercial crisis is not exactly the kind of opportunity’ sa yas for the total change of a finan- ry sr stem. It is an extremly delicate subject, and one that must be approached with the greatest cau- tion. At present the chief object of those in autho- rity must be to restore confidence. This the letter of the French Emperor will do in France, and we believe that the ministerial document, published in another column, will have the same effect a Upon this ground both receive our commendation ; and when the crisis has been surmounted, it may be advisable for the authorities to endeavor to find out means to avert a repetition of the calamity for the future. juer, was [From the London Chronicle, Nov. 13.) At last the government have adopted the measure whose expediency we have maintained ever since the present monetary difficulties commenced, and which the events of the last few days have rendered an absolute necessity. The Bank Restriction act is sus- pended. The directors possess a ministerial autho- rization to break the law, as laid down by the statute of 1544, and issue notes to an unlimited amount. For this infringement of the act, should it really take place, Lord Palmerston undertakes to obtain from Parliament a bill of indemnity, express- ing at the same time his reliance on the “discretion and pradence” of the directors to confine their snr. plus issues, both as to duration and extent, “within the strict limits of the exigencies of the case.” /t is impossible to over estimate the importance of thi as we confidently believe, be enermous and imme- diate. Our single regret is that it has been so long delayed. Even a fortnight since, the appear- ance of the ministerial letter we publish to- day would have averted many catastrophes, and spered the mercantile community a long series of calamities. The proximate and avowed cause for the proceeding is the stoppage of the two great joint stock banks in Glasgow. These failures occasioned a withdrawal, in about three days, of more than a million sovereigns from the Bank of England, and by the abstraction of so large an amount of bullion, re- ducing the legal note circulation so much as almost to absorb the whole reserve of notes, which at the date of the last return hardly exceeded two millions. The point of utter exhaustion having been reached, the issve of a governmental “letter of license” was the only remedy against almost total suspension of | discounting operations in Threadneedle street Those who have watched the course of events in the monetray world have for some time foreseen that this point would be, ere long, reached. The failure of the Glasgow banks has bat slightly precipitated the issue, But the question is everywhere asked, why was the remedy withheld so long? have been applied in time to save the Western Kank of Scotland, the City of G ow Bank Messrs. Sanderson, and many other firms of less note, but whose suspension will invelve thou sands in ruin. The delay has proved most disas trous to all the commercial interests of the coun- try. We trust that the disasters have not yet passed the limit at which they would become irre- trievable. By the blgotted partisans of the ol 1844, the violation of its restrictive enactments now authorized, will be regarded as something like a mortal sin. By every one connected with commerce the step must looked upon as a daring experi- ment. But the peril, if any there be, attending the measure, has been entirely created by the hesitation in adopting it. Her Matas ministers have ac- tually withheld the remedy until the condition of the mercantile body has become so feverish and attena- ated as to render its application a matter of some hazard. But a few days since the prescription would have Eevee equally safe and effectual. The only peril which the partisans of convertibility an- ticipate from any relaxation in the bank issnes is that of a “run for gold.” This was the bugbear of financial theorists during the early deca or the present century. In truth, the public mind in this country has outgrown any such suicidal folly as completely as we have outgrown sedition, chartism or the “ Rights of Man.” Nothing could run for gold except the access of a panic, the most sober trader ceases for the moment to be a reasonable being. If the government interposition has been postponed until the occurrence of such a panic is possible, the blame must be at their door, and that of the prejudiced advisers to whom they have listened too ~ 4 Naturally we turn, onan occasion like this, to the precedent set just 10 years ago, when a letter of precisely similar tenor was is- sued by the government of that day. As the com- parison is instructive and most encouraging, we re- joing that document in its entirety. It will be seen hat the missive sent yesterday to the bank is formed exactly upon the model set up in October, 18 They still assign, as reasons for relaxing the Bank act, the monetary crisis of which that act had been the sole cause, and enjoined on the bank the duty of maintaining a high rate of dis count, by way of preventing the relaxation from being extended beyond the actual necessities of the occasion. The relief to commerce fore, be kept down to the lowest revent the ik fr ng brought it ix probably in consideration for the augmented wealth of the country that this rate of interest, years since, is now must, there: which we find at 8 per cent t ageravated to 10. Ye look, however, to the results experienced in 1847, and take courage. Just before the issue of the miisterial letter in that year, the position of the Bank of England was, in many re spects, worse than it has now beeome. On October 23, 1847, the stock of bullion in the bank vaults was | £8,312,000, of which aboot one and @ half millions was in silver coin, and the reserve of notes £1,547 ,000. Both these items were considerably larger at the date of the last return; and if the position of affairs has since deteriorated in consequence of specie re mittances to Scotland, # is certain that all the coin sent to Glasgow must find its way back again in the course of a few days, at latest. The general state of the country was also then fraught with far more disquietude and ril than we have now any cause to apprehend, ere had been a concurrence of causes, physical and moral-famine and excessive speculation —to produce commercial distress. A panic, which was described at the time as being “wild, and ridiculous, ari ne men to of ew moaiin, petenn et» ey sete. Dow eae ad proms pplies of | Sethe nation, by allowing a corporation which has ly quasi national ‘and ia ruled by nationally im through artificial channels, An expected remittance | fosed laws, to create fletitiows standards of value, in the of a quarter of a million from New York was | shape of bank notes which have no metallic representa- hailed as a godsend; for any further addition to the | tives. Such proceeding, however, must be understood resource but to buy up specie at a premium on the continent. There was then no Australia or Cali- fornia to send us their golden harvests, and our own export trade had not reached half its value. The Times of that day, which to the last moment denounced every proposal for relief, when the letter sppesed. prognossioaied a run for gold, and oracularly declared laxation of the bank act could “only prolong the reign of those errors under which we are now suffer. ing, and bring upon us at no long interval a still more terrible crisis.” Yet what was the issue of a step heralded by these dim foreshadowings? In a single day after the government missive had been promulgated, consols rose from 80 to 804. From that moment also the position of the bank rapidly recovered. The letter, as every one knows, was step. | ‘The relief afforded to commerce in every branch will, | It might | never really acted upon—no neceesity issue the illegal notes. So far from the apprehended run for gold taking place, in less than a month af- tel . by November 20, the amount of bullion in stock of metallic currency there seemed no other | to be an extraordinary proceeding, in which the commu nity for its own good allows a certain establishment to ox ceed the limits of safe and legitimate dealing. In fact, the country must be considered as becoming security for the | vedemption of the extended issue, or, in other words, as that the re- | | | | resent itself issuing x quantity of paper money by itwagent, the UP | bank, inorder that the business of the country may be | conductes i wring the temporary abstraction of the usuat currency. It is, therefore, no proof of the failure of the Bank act that at certain times its restrictions should be suspended. In fact, this extension of issue should be considered as something superadded to the ordinary conditions of the bank’s existence. The act of 1844 was passed to control the bank, not to control the nation, Parliament docided , and we think wisely, that it would not in ordinary timos trust one great corporation with the power of issuing am unlimited number of notes. eeding is strictly im accordance with the regulations which contro! the issue of country banks and which restrain London banks from was found to | baving any issue at all. Whether the amount of sur plus allowed to the ordinary [purnece of commerce 1s, question for discussion, but the ‘principle establishes a restriction of some kind has been be sufficient for the of course, @ which the Bank of England exceeded ten millions, the re- | py the nation in its general course of legislation. It still, serve of notes sf the rate of discount had fallen, by the cessation of pressure, to 7 per cent. sults in the we have the fullest confidence. am the Loudon News, (City Article,) Nov. 14.] ¢ government letter, authorizing a of the ve of the Bank Charter ‘ deci ly improved tone in every. deneranes of finding how narrowly they That the re- » The community have n startled at have escay a tic panic, and it may besome days Tefore athe will rubside into a really ‘settled state. Thus far, how- ever, the eflect has been most satifsactory; indeed, considering the alarm and gloom whieh: prevalee everywhere zeerday: an almost magical change may be said fo have taken place. Of course no one expects that the facilities just accorded by govern- ment will either precipitate a decline in the value of money, or prevent the fall of embarrassed houses; but every one is perfectly satisfied at finding that the incipient panic has been stayed. The letters received to-day from the country indicate an extent of mone- tary disturbance and commercial excitement almost, iinot altogether unparalleled, and it is fearful to contemplate the ruin which would have resulted from the postponement of the expected relief for even one or two days. To-day money circulated much more freely in the discount market, and, in consequence, there was witnessed the expected and satisfactory circumstance of a decided diminution in the demand at the Bank of England. The applications at that establishment to-day were still very heavy, it is true; but from all that we can gather, we believe they were not by any means equal to half of those witnessed yesterday, when, as before stated, the de- mand was perfectly unprecedented. Considering the prospect of a gradual subsidence of the demand, which will be promoted by the increased disposition to lend observable in the open market, a strong im- pression prevails in quarters usually well informed, that the Bank Charter act will not be actually in- fringed. In this case, of course, Ministers will have no occasion to present a bill of imdemnity to Parlia- ment. As it is positively alleged, ever, that Parliament is to be speedily convened, the suspi- cion is expressed in many quarters that other finan- cial considerations may have something to do with the slep. ‘The funds opened this morning with great buoy- ancy, at a fresh rise of 4 per cent, and from the eagerness to purchase which was at first evinced, a further advance seemed probable. A decided alteration, however, was occasioned by the ap- pearance of sellers of stock to a very large amount for immediate delivery. These sales were attributed to a joint stock bank. It is computed that, altogether, stock to the amount of from £600,000 to £800,000 was to-day pressed upon the market. The result was a fall of 4 per cent from the first prices of the morning, and the funds finally closed 4 to § per cent lower than yesterday. ‘The increased strength of the market, however, is proved by the fact that so large an amount of stock was so readily absorbed : yesterday no progress could be made with sales of stock for cash. The statement that Parliament is to be called together on financial grounds tended to discourage buyers, and the antici- pation of an extraordinarily unfavorable bank return operated in the same direction. Nearly every other department of the Stock Ex- change wore a decidedly improved appearance. In English railway shares the rise this morning was even feverish, and therefore met with a rather de- cided check later in the day. Great regret was expressed to-day at the announce- ment of the stoppage of the well known and respect- ed firm of Messrs. Draper, Pietroni & Co., of this city, largely engaged in the Italian and Mediterra- nean trade. The liabilities of the house are estimated at about £350,000; but as a considerable amount of their acceptances against credits will be withdrawn, the ultimate engagements will be much reduced. Great sympathy is on all sides expressed for the em bjoined is a copy of the circular is- sued : 81 London wall, F. C., Lonpon, Nov. 13, 1857 Our connection with the TransAtlantic Steam Naviga- tion Company of Genoa baving very much embarassed the financial position of our general business, and that com pany seeking at thiv thine to press us to an unfair settle ment, the effect of which might prove injurious w our creditors generally, we bave (however painful at this moment) determined on suspending our payments, fee! ing assured that by this step and the forbearance of those parties who may be interested in the realization of our assets, we shall (although we may cause temporary in convenience to our correspondents) be enabled to dis charge all our obligations. We have availed ourselves of the assistance of Mesers. J. E. Coleman & Co.. and have requested them to place the statement of our allairs before you with as little delay as possible. We are yours faith. fully, DRAPER, PIETRONI & CO. {From the London Times, Nov. 13.} At a late hour yeste ernoon the commercial pub: ie received the news that the Bank Charter act had suspended. The bank is thus y it. On the It may be con- y to regulate check this rtep we will say but little sistent with the maxims of political ec the issue of notes during ordmary rash speculation and the embarca | destitute of capital, while when an ac vail the chief by e allowed to ex business dearth of nm | guarante ciple of our monetary #) into a law | the better ite legal issue of notes often ae rate | is necessarily raised above a certain point Parliament sb estadiie intelligible prineiples. Th country should uot be sui law is obeyed as long a of discount then an act of practice en sound and smomercial interests of the coted toa system by which a pecience ie eagy, and tempora: rily sweptaway as often as pressure or panic supervenes. ‘The houses which in 1847 and in 1857 have stopped pay ment before the relaxation of the law may well complain that, while they have been crushed by the operation of the Bank Charter act. others not more solvent or of high er standing than themselves have been saved by the sus | pension of it. Whether the bank avails itseif of the privilege accorded to it or not, the invasion of the law is the same, and those who, trusting to ite inviolability, pru deutly suspended their payments, now find themselves placed ot a disadvantage in respect to those whom bold ness of good fortune encouraged to hold om a day or two longer. We can well imagine that only the representation that great commercial calamities were about to take place has determined the government to act so bold @ part. How | much they feel the importance of the step is proved by | what we have now to announce—that it hae been resolved to cail Parliament together at once, in order to settle the questions raised by the present crisis, and tw register for Mivisters and the ik Directors that indemnity for which they are obliged to appeal. A council will, we ander stond, be held next Monday, at whech, probably, Parlia = will be summoned to meet at the end of fourteen 8. ye may certainly prepare ourselves for a violent at tack on the English monetary system as established by the Bank Act of 1844, All the theorist of all the schools ‘of currency will be ready to pounce on whit seems the carcass of a dead law. And. indeed, they will have much that fe plausible and pot @ little that is trae on their side ‘The law is a fair wenther law, a law for times of steady trading and easy credit, ite provisions are like the paste board defences of the Chinese—strong to look at, painted with heavy masees of stone and yuns of enormous power but in reaiity a weakness and a sham. Sueb will be the reasonmg of the partisans of inconvertible paper or uncontrolled banks. The defenders of the existing sys tem will, ov the other band, -have w face the fact that the Act bas beew twice saspended in two snecessive panies. better proof, it would seem, that the law does not provide for that very condition of things in ex pectation of which it was framed? At thie moment, when the pressure seeme about to ceage, when the Indian mu liny is broken, and the American disasters are drawing to a close, we have the act which has been so often debated, eo skilfully defended, eo unbesitatingly supported by com mercial men of all patties, which committees have de clared perfect and the House of Commons sanctioned again and again, now for the second time set aside by the yovernment at the earnest supplication of the business community. Yetas to the retention of the present law we have not the slightest doubt. Its thorough supporters say that it is perfect for all times and all circumstances, and that its prosent suspension is a weaknese en the part of government, generated by an ineane panic on the part of the people. But even those who admit that a time may come when th k shonld be allowed to extend its issue may stil Bank Charter act se the general law of the la may fairly argue that the suspension allowed by the gov | ernment yesterduy was to save the country from return | ing to @ state of barter id is the measure of values, and, as long ae it bears a enffictont relation to the transac tions of the country, men may he required to make their payments in itor in notes immediately convertible. But if from any sudden convulsion the metal falls tis drawn away, and exhausted at any spot, it cannot ve expected that all the business at that spot is at once to conse, There remains money's worth— land and honses, cotton and sugar,” wines” and tobaceo. All that is wanted js to be able to express these jn the currency which is the general etandard of va jue. Gold has vanished, but the country has the material wealth which will bring it back again at four and a half millions, and however, may present case will followa similar cycle , mks. rer act, hasledto ston | t to the country to remedy be competent taneous | avy abnormal deficiency of the currency by an extra- ordinary issue, which the bank may be empowered te as it were, on its own account, but on account |, Which en a amount issued an@ dispose of whatever pr: may accrue by the transaction. ‘This seems to us to be the defence for such an interference of the ment a6 has just taken place. The ‘the Bank act has nothing akin to the system which imerican establishments to flood the country with paper representi only a@ small per centage of capital, er Perhaps no ore Th a ion cera coe rendered necessary by an epee Me wpa and ‘when the necessity ceases the relaxation may cease toe. Still the suspension of a positive law is agrave matter, aad may well necessitate a speedy appeal to Parliament. THE BANK FAILURES IN SCOTLAND. [From the North British Daily Mail, Nov. 12.] The block-up in af is extending wider and r. The suspension of the City of Glasgow Bank aggravates immensely the embarrassment and dis- trast arising from tae stoppage of the Western, and shows in what lamentable results want of confidence, when once it breaks loose, may involve this commu- nity and the whole kingdom. The same cause which has compelled the City Bank to close its doors may force a similar course Pape any bank in Scotland or the world; and one of the first duties we have to perform in alluding to this matter is to point out clearly for the information of the public in what the suspension of the City of Glasgow Bank consists. It is not because the bank was unable to convert its notes into gold that it closed its doors. Every pound note which the bank has in circulation could have been exchanged at the counter for gold. The City of Glasgow Bank, indeed, is one of the few banks in this country which could convert its whole paper circulation into gold on demand immediately from its chest, because it has grown up chiefly under the Banking act of 1845, which requires a deposit in gold equal to every noteabove the average issue of that year. It is not because the bank did not afford in the liability or means of its proprietary an ample security to its creditors that it was driven to shut its doors, its shareholders are very numerous, many of them very wealthy and all of them are liable tothe last penny of their fortune for the obligations of the ta ‘or is the suspension to be attributed to bad debts in the books of the bank, for the assur- ance of the directors—a body of highly honorable men—has been published that this is not the cause, and no logses sustained by the bank have been named that could make any impression on the large paid-up capital (£1,000,000 sterling) and the reserve of the bank. The City of Glasgow Bank, in short, has - suspended because there was a run upon it for py. ment of its deposits in gold—a demand whic clearly impossible to se Bank that pays an interest ‘on its deposits, and the inability to implement which ata moment's notice does not in any degree affect se the perfect solvency and solidity of the bank. it seems us important to point out these cir- cumstances, for, in addition to the misconception which they may remove in country towns where there are branches, they will show to the admirers of the present banking law on the other side of the border that there is no security whatever in the issue of notes upon an equivalent basis of gold against the most serious catastrophe which can befal a commer- cial community. No case could illustrate this better than the City of Glasgow Bank. because, as we have esaid, its notes, under the act of 1845, are based al- most wholly on sovereigns. The present is hardly the time for blame or recri- mination as to the causes of this additional catastro _ An opportunity will come when the whole his- ory of these banking difficulties will have to be paced up with unsparing honesty. The City of Glasgow Bank has been forced temporarily to sus- pend in consequence of the distrust created by the fall of the Western, and the fail of the Western might have been averted by the timely co-operation and assistance of the leading Seotch banks. The whole community is disgusted at the pride, selfish- ness, isolation, and utter want of head Risplayed by the directors of our monet institutions, and the callousness and stupidity with which they sacrifice the honor and interests of this immense city, day after day, toa miserable vanity and egotism. The present crisis will leave an indellible lesson on the minds of the citizens of Glasgow as to the trust to be reposed in certain banks, but the concern of the moment is simply what is to be done to lift affairs ont of this dead lock. Two of our banks with the ‘argest circulation are stopped. Every day until they resume notes to the amount of £800,000 will gradually disappear from the currency ‘of Scot land—an evil in itself of no ordinary ‘magnitude, and one that will be felt immediately in the daily transactions of the country. But this is only a segment of the mischief. large number of our merchants and manufacturers are shut out from their deposit accounts and from the ordinary facilities of discount. Large establish ments are being closed every day; hosts of unem- pared workmen are already gathering in the streets. it is no longer the American trade or any branch of foreign commerce that is embarrassed, but our whe inland business is obstructed and imperilled. The bills of Glasgow merchants on country towns with suspended branches must be returned upon them dis- honored, and, unable to operate on their own funds or credits in the banks, their solveney will be at an end. Let no man think that because the doors of his bank are still open that he is therefore safe, or may probably benefit by the embarrassment of hix neighbor. Let no bank imagine in ostrich stapidit; that becanse it burrows its head in the mud it secure from danger. There is nota firm or a bank in Glasgow that is safe while the present state of things continues. The case is one, therefore, for a public and general effort at restoration. As regards the vacuum suddenly made in the supply of lating medium for our retail transactions the evil may be greatly alleviated by a demand upon the chartered banks for gold in exchange of their notes. When a few hundred thousands of sovereigns have thus been liberated from imprison- ment, the want of the withdrawn one pound notes will have been supplied. The old danke can very well do this much for the com- munity, and the only inconvenience arising from it, indeed, will fall upon London and the Bank of Eng: land; but, as little compassion has been felt for us in that direction, we need not be at all tender hearted as to their accommodation. The second measure on vhich we would rely for a complete recovery of our position isa general movement of the citizens for (he resuscitation of the suspended banks. There can be no doubt of the perfect solvency and trasworthi- ness of the directors and shareholders of the West- ern, and of oe oan cae of vege its business on a sound and profitable basis. Let our merchants and bank depositors, therefore, put their shoulders to the wheel, and resolve in public meeting or by a sub scription paper that the doors of the two banks must either be opened in four-and-twenty hours with the aid of the other banks, or they will do the work themselves by transferring as mach of their deposits from the open to the closed banks as will be suffi- cient for the purpose. This is the best advice we can give in the circumstances. We shall be happy if something Letter can be proposed, but we are cer- tain that if a remedy be not found, and that imine- diately, woeful results will fall upon this city and upon the whole country side. EFFECTS OF THE PANIC IN EDINBURG. {Edinburg (Noy. 12) cosrespondence of the London Times.) Thong! ramee is not, strictly king, a com- mercial city, and will suffer comparat ing 4 little from the recent disastrous failures, it has at nartici- pated considerably in the excitement and alarm of the present crisis. The unfortunate resolution, not to say mistake, on the part of the other banks in refusing to afford sufficient aid to the Western Bank of Scot- land, notwithstanding its notoriously solvent pro- has produced « pante affecting more or less prietay all of ‘teemn, and has given no inconsiderable blow to the confidence of the community of Scotland gene: rally in its banking system. A run has been made, more or less strenuous, on almost every bank of this city, and on some the pressure has been tremendous. The panic has unfortunately coincided with the term of Martinmas, which took place to-day, and Which is one of the two half yearly periods of pay mend throughout Scotland. Taree sums of money are usually paid away by the banks at this term, @ reflux immediately following; but on this oecasion not only had the banks the usual payments to meet, but hundreds of Cepcaters in no need of the cash, and veting under the impulse of panic, ran to the bank to demand all their money instantly, and in gold, while the usual replacements were made in very stinted measure. Even the notes of the old chartered banks and of the Rank of Bagland itself were refused in many cases, the clamor being every where for gold. The Union Bank sustained te very severe pressure, but, having fortified itse a large supply of specie from London, it was able to All ig aquestion | meet all demands with alacrity, though in many