nd
mercantile houses of eminence were closed; a general apprehension among
the more skilful financiers was entertained that no _ultimate_ benefit,
but considerable ultimate injury, would ensue. The judgment of this
class of persons may be best combed in the following review of the
event:--"On this resolve being generally circulated, nothing could
exceed the agitation that prevailed. Everywhere it became the engrossing
subject of conversation; and, while many who were favourable to
the 'expansion' objected to the high rate of interest, others, more
experienced, remembering 1825 and 1836, with all the train of evils that
resulted upon the withdrawal of the notes then issued, loudly expressed
their disapprobation of this invasion of the most valuable clause in
the Bank charter bill. Its mere relaxation, it was observed, robs the
measure, at once and for ever, of the powerful check to over-trading
that a knowledge that, under no circumstances whatever, a relaxation
would be resorted to, was calculated to produce. The immediate effect in
Liverpool has been to raise the value of cotton one per cent. This is
a direct hindrance to manufacturing, and Manchester, Leeds, &c,
consequently suffer. It is remarked at Liverpool that eight per cent.,
although high, is nothing in comparison with being obliged to sell.
It follows, therefore, that, when sold, all the charges incident
to withholding must be paid by the purchaser, and ultimately by the
consumer. From Manchester, advices have been received of the failure
of Messrs. Fairbridge and Mr. Robert Gardner (the latter is greatly
regretted); from Leeds, of a firm it would be premature to mention. In
the meantime, money in London is rather dearer than cheaper. Discount
houses, and the joint-stock banks, are taking money repayable at short
dates at six percent., five having hitherto been the current rate.
Good bills will not be done under eight per cent., and second-rate at
scarcely any price. The Directors of the Bank of England at present have
not been subject to any great demands since Monday; the difficulty of
offering good security being at once an obstacle to firms partially
insolvent. At present, it is almost premature to judge, but doubts are
entertained whether the benefits resulting, even for the present, from
the 'relaxation,' will at all balance the baleful effects anticipated."

The government did not expect that such opinions would be entertained by
so large and influentia