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Leader (1850-1860), 21st August 1858, Edition 1 of 2, Page 850, THE ENGLISH, SCOTTISH, AND AUSTRALIAN CH...

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      used to settle accounts with foreigners ; and to make its increase or decrease tie test of all profit is the consequence of a piece of erroneous legislation . Naturally , joint-stock batiks and private banks , with theirgreatermeans , would look at the condition of trade and the character of their customers , to determine the rates at which they would either lend or borrow : but the legislation which , makes the gold in the Bank the regulator of the . rate of discount , makes the Bank of England the sole depository of all the money abstracted from the

      nle by taxation , and at the same time makes le sole issuer of legal credit currency . The real legitimate instrument for liquidating debts is the precious metal , which has an intrinsic value of its own , not the promise to pay it ; bat the legislator makes the promise to pay of this one body a legal tender , and thus makes itself responsible for the species of money and the safety of the bod y which issues it . By judicious management the banks might always have as much gold at their command as -would exonerate them from dependence on . the Bank of England , but without an alteration

      of the law they cannot be exonerated from dependence on it for a supply of the legal tender , ana for Loans which mast be had from the Bank when taxation , places in its hands a very large portion of the money or representative capital of the community . By this means other banls are made dependent on the Bank of England . It is another name for the financial department of the State , and they place all their reserves in its safe custody . Other banks then are driven by legislation , from their natural course , and are compelled to guide their conduct by that of the Bank of England , which rather

      hampers than helps trade . The law stands in their way , but with the immense command of capital they now possess , and the general confidence they enjoy , they will , perhaps , think the time is coming when they nay disregard the rule of the Bank , and flx the rate of interest they will allow on deposits and the rate of dfacount at which they will supply hew enterprises with capital hy the facts of each case . The flux of gold from and into the Bank is of immense importance to those who are responsible for the redemption , of the legal tender , but it ought not to regulate the interest of money , as it neither does nor can regulate the rate of profit .

      It can no more be said of bankers than of other men , _ that they always properly fulfil their high functions . Some of them have been extremely reckless . The New York and other American banks , and our own banks which , suspended in 1857 , can neither be excused nor exonerated . They neglected their duties ; but bankers are not likely either to know or perform their duties better by interposing short-sighted directions between them and the great natural facts by which alone business can . be safely guided . SBor increasing trade and new enterprises legislation cannot lay down rules . Public writers

      can say , without interfering in the technical part of the nice art of the banker , that he is likely to be successful , and deserves the confidence of his clients in proportion as he devotes himself steadily to his own business . Under this aspect it is a fact of great importance that the Governor and . Directors of the Bank of England are not bankers , and are engaged in other branches of business . Neither they nor the permanent officials of the Bank can adapt it to tb . e circumstances of the times . " Hence , ¦ with its largo capital , it does not receive such large deposits as the pint-stock banks . Hence , too , its

      conduct has on more occasions than one been so faulty , that it lias been found necessary to regulate it by Act of -Parliament . It is also a fact of almost equal importance that the partners of private banks lave Utterly been themselves much engaged in new enterprises , or have become chairmen or directors of railway companies and of numberless other speculative undertakings . One of them is now a member of the new council for India . If they lose the confidence of the public , it will be their iauw

      own . : xne joint-stock banks act differently , and are managed by gentlemen who , for a certain , but if successful , increasing remuneration , devote their whole time aad attention to one concern . Messrs . Scrymgeour , Gilbart , . Pollard , and other manager ^ , do not figure as direotors of lialf a dozen companies . They give itheir whole souls to their banking business—they skilfully adapt it to the wauta of the-community—they allow interest on deposits , and they Lave accordingly acquired the public confidence ond ha \ e achieved a great aitteeu .

      850 The . Leader. " Fsg-Jgg' August 21,1...

      850 THE . LEADER . " FSg-Jgg' August 21 , 1858

      The English, Scottish, And Australian Ch...

      THE ENGLISH , SCOTTISH , AND AUSTRALIAN CHARTERED BANK . The causes that have operated to curtail the profits of this bank during the last six months' trading , were clearly developed , not only in the report , but in the discussion which ensued at the meeting on Wednesday-It is so customary to see very large dividends declared by Australian banks , that a dividend of four per cent , is sure to attract attention and to require explanation . We find from the report that the limitation of profits arises mainly from the prudence which the managers have felt it their duty to exeTeise while the recent finans cial crisis and its consequences were still in operation . For this determination the managers deserve the

      thankof the proprietary , and though they may thereby have temporarily curtailed dividends they will have amply made up for this by strengthening general confidence and by placing the business of the bank on a sound and substantial basis . Another cause which has operated to reduce dividends is the practice of allowing interest on current accounts . N " , on the propriety of this practice there does not exist an undivided opinion . It may be contrary to sound principles of banking as a rule , but it may be exceptionally advantageous and expedient to a particular bank . The proper judges of the matter , we

      apprehend , are those to whom the general management is entrusted , and we may be sure that it -would not have been adopted unless found to be imperatively necessary for the interests of the banking business , or continued unless proved to be profitable in the result . But we find that the practice is about to be gradually discontinued , and we think the shareholders may safely leave the matter to-be dealt with by those who can have but one object- —that is , to promote the interests and prosperity of an undertaking with which they are connected .

      We are always prepared to meet grumblers at meetings of joint-stock companies , especially when dividends disappoint expectation ; but we cannot find that any substantial ground of complaint was brought forward by any proprietor , though there were carpings by some and suggestions by others , all of which received due attention . ' ¦' ¦ '¦' . ¦ •' - ' . - . : •'¦/ :: ; '• ; . ' " . '¦ " ' . ' . ' -. . ¦ ¦"' .. - ¦ ¦ ¦¦' . ¦ Altogether , it appears to us that the proprietors have no reason to complain of their property or their prospects . ^ . ¦ '¦ ¦'¦ ' ' ' ¦' . ¦ : '¦ ¦ . ¦ ¦'¦ . '¦ ¦ "• ¦ , . ' ' .- ¦ ¦ ¦ •; ¦ . . ' ¦ . ¦ ' :

      General Trade Report

      GENERAL TRADE REPORT

      London, Friday Evening; The Trade Report...

      London , Friday Evening ; The trade reports of this week , like those of the preceding week , confirm the belief that in most of the great branches of commerc e , a period of considerable activity has set in . Nearly all the leading industries are well if not fully occupied ; and it is satisfactory to observe that while there is nothing like rash or undue speculation , there is an increasing production , for -which , there is a . natural and legitimate demand . This is remarkably the case in parts of Yorkshire and Lancashire , and to some extent the same features may be found in the manufacturing districts of Scotland . The iron and hardware trades still constitute an exception to the otherwise general progress of improvement : but even in them ,

      as -will be seen from the abstract below , the taming point has been reached , and a favourable movement commenced , particularly in the home trade , where stocks are unusually low . After harvest , when there will be a considerable dispersion of money throughout the agricultural districts , an increased demand will arise , and the natural consequence will be a . revival of activity in the workshops of Sheffield , Wolverharapton , and Birmingham . Meantime there is an appreciable improvement in the demand for goods from abroad . So that , on the whole , though there is unquestionably a good deal of dulness yet remaining in these important departments « f British manufacture , there is good reason for anticipating th at it is rapidly drawing to a close , to

      be succeeded by a lengthened period of briskness and prosperity . The general movement in trade is of course again visible in the traffics of tlie leading railways . With few exceptions there is an improvement in the merchandise receipts in the whole of them , while in all the comparative ratios of decrease are becoming less and less . At the same time , and this is a safo indication , the commercial demand for capital shows no signs of relaxation . It is , indeed , increasing , and certainly will continue to do so for the next month or two ; but the supplies are equal to the inquiry , consequently manufacturers and merchants , notwithstanding their growing

      trade , have not to pay more than from 2 | to 2 | per cent ., or at the most 8 per cent ., for their best bills . As far as most of the Manchester traders are concerned this is satisfactory ; for while the raw material is falling in the Liverpool market , and the accounts from America are favourable , they are generally under contracts for yarns and goods made a week or two ago , when cotton was rather higher and money seemed likely to bo more in request than it now is . To this view of tilings , which we ap e certain is not over-sanguine , there only remains to be added that the harvest will tarn out good throughout the United Kingdom ; and that ( a sure sign of anticipated prosperity } the building trades all over the

      coSa 2 . qidto ^ aCtiVG a 3 they ™« before tuela ^ In Manchester , the advance in the prices of ™ goods may be , considered as established althou ? K T tendency of the Liverpool cotton market £ bfen t ' wards lower rates for the raw material—a tennl I which large buyers of goods are generally Strib ? ? take advantage . But Manchester appears for tS , n **" to be less dependent upon the Liverpool couS £ S"J than it used to be . Liverpool , indeed , * Tweak Man cheater rather strong and able to hold ha *' ,, , Meantime there is a good steady demand for nearh- * n classes of goods , and from nearly all markets ; andi fX prices are paid for long-cloths , domestics , T-cloth , « i most descriptions of printing cloths . The maker * „> 40-inch shirtings , nuidapollams , and jaconets anitabJf for the East , have not sold much , thought hero ™ more activity to-day . This is rather strung ^ £ Z Bombay markets are very good , and yesterday's matt brought some large orders . The fact is explained bv

      the failures at Calcutta having produced great cautioj among all the shippers to-India ,-while those vho deal with China are waiting tlie course of events . Still a great deal is doing for India , and more will follow It will take some time to overdo that market : but it will hi overdone in all probability . . With regard to yam and twist the spinners arc exceedingly independent especially those who make Ko . . 40 . and downwards , as thev have heavy contracts on hand . The spinners of ther higher numbers are also very firm , though there is less demand for these qualities . On the whole , the Manchester trade is satisfactory , and there is no reason whatever to fear a reaction .

      The accounts from the woollen districts of Yorkshirethis week are equally as favourable as those described in our last . In all departments , whether' for clothing worsteds , carpets , or yams , it is much , the same storyand while the full employment , of the population has produced a good effect upon charges for the maintenance of the poor , it is also manifest in the erection of additional houses for the operative classes . In Leeds it is a subject of remark that , notwithstanding the differences with China , there is no falling offio . the quantity or quality , of the cloths ordered by the houses that principally deal with the East . The demand

      for plaiu and fancy goods for the home market is steady ,, and rather increasing . The blanket districts , of Dewsbury and Heckmondwicke are busy with winter orders ,, and some have been received in anticipation of a trade with the colonists in the district of Trazer ' s River . At Huddersfield the aggregate bulk of woollen' goods sod this week has been lar ^ e , and the demand remains very steady . The principal inquiry has proceeded from . the home trade ; and it has included plain and fancy trouserings , heavy broadcloths , pilots , and most other descriptions . The orders are such . that mahufacr turers are feeling themselves compelled to extend their powers of production ; but they are doing so only moderately . There are no signs of rash speculation . Stocks are very moderate and prices firm . . At Bradford the worsted trade continues active .

      Already light patterns have been submitted to continental buyers for next year ' s trade . Meanwhile the market for pieces , though less animated than it would be were wool not quite so high , looks satisfactory for the ensuing months , manufacturers being well engaged upon contracts . Worsted yarns are in good demand at exceedingly firm prices . During the whole of this week bright-haired wools have been in good demand at upward prices . Deep-grown wools which assimilate'to bright-haired are also in good demand at good prices . Other descriptions of combing wools , from No . 40 downwards , are not in good request . The finer class of English wools have not partaken of an advanco corresponding

      with that of the deep-grown nnd the bright-haired class , although tho best diamond teg and wether matchings have been and arc still in good demand . Tlioro id no doubt much speculation in tho bright-haired nnd deepgrown wools . Still there is a good business doing in worsted yarns and pieces ' . The prices which are received in both departments nro such as will generally enable the spinner and manufacturer to realise a profit . They are in most cases , however , working to order on transactions concluded a short time ago , and there is not the same readiness there w ^ is to yield the still advancing rates demanded in cons 2 quenco of tlio greater stiffness of wool . There is a fair demand for cotton yarns , and

      prices are firm . At Halifax bright-liaireil wools arc advancing also . Yarns are being niaxio very extensively , nnd they aro selling at better prices . Tlio carpet trade is brisk , owing to the receipt of largo foreign ami homo orders during the last eiglit or ten days , including some connected with tlio approaching visit of her Majesty to Leeds in tlio course of tho ensuing month . The number of hands employed upon the worsted trade is increasing , Tlio demand for light goods appeal's to bo pretty y / M satisfied , tho chief inquiry now being for thoso for autumn and winter wear .

      Tho Rochdale manufacturers liavo received considerable home and foreign orders for flannels , and most of tho mills nro well employed . Fine goods command a good market , and heavier descriptions are fully ns active . In fact , no now orders nro taken without an increased

  • Citation
    • Leader (1850-1860), Aug. 21, 1858, page 850, in the Nineteenth-Century Serials Edition (2008; 2018) ncse2.kdl.kcl.ac.uk/periodicals/l/issues/ldr_21081858/page/26/