Further from Europe.
The most important portion of the foreign news, to the 30th ultimo, is that relating to the financial crisis in
England.
The London
Times contends that the crisis is no crisis, and merely a panic, needlessly caused by the failure of the Leeds Banking Company, an unlimited liability concern, and says:
‘
"The question now is, was this impression a delusion, or, supposing it to have been correct, what has occurred suddenly to alter it, and to throw every one into alarm?
There is absolutely no reply, except that a banking concern, which was formed thirty-two years ago on the old system of unlimited liability, has, after many years of reckless deception, been arrested in its career, and that at the same time a heavy fall has taken place in cotton, the high price of which was previously the only ground of complaint the population of this country could find."
’
Fortunately, all the banking companies lately formed have limited liabilities, and will not follow the fate of the
Leeds Company even should the panic become worse.
It thinks that--
"Whatever danger may exist in these directions, therefore, will be short-lived; and the probability is, that in instances where, through ignorant or culpable management, a break-up may occur, even the shareholders will sometimes find that they have been saved from complete loss.
Looking at all these points, it will be seen that there never was a time when, speaking in a broad commercial sense apart from the little interest of share promoters and produce speculators, the country was entitled to look upon its position with greater confidence and satisfaction.
Let traders remember that if large profits are to be made by mercantile or financial business, the rate to be paid for the use of the capital by which that business is carried on must be proportionately high; that they have only to base all their arrangements and contracts on a full recognition of this fact; and that, then, whatever may be the terms to which the rate of discount may go, we shall simply have to congratulate ourselves that all classes — the merchant, the agriculturist and the capitalist — are equal sharers in the national well-being."
The failures announced on the 26th ultimo are
Alfred Teale & Co., woolen merchants, for £100,000;
John Chapham, a manufacturer;
Turner &
Johnson, and
C. Turner, cloth manufacturers, all of
Leeds.
Turck,
Barclay & Co., £120,000, and
F. Yague & Co., of
London.
Robert Byrne, stock broker, of
Liverpool.
John Fletcher & Co., corn merchants, of
Lancaster, £100,000.--
Lightfoot & Sons, sugar refiners and rice millers, of
Liverpool.
Robert Baxendall, corn merchant, of
Manchester.
David Kamsden, spinner, of
Bradford; and others of less importance.
The deficit of the Leeds Banking Company is over £500,000.
A number of failures were still expected in connection with this large banking institution, as well as among speculators in cotton, produce and shares, which exhibit much heavy depreciation in value.
