A Hundred Years Ago
" THE SPECTATOR," JANUARY 219T, 1837.
On Monday morning, a considerable interest was excited by a rumour, which gradually increased until it became the sole topic of conversation, that the old and respectable banking firm of Esdaile and Co. was placed in such difficulties from the want of an immediate command of cash, that they had found it necessary to make an appli- cation to the Bank of England for assistance. This intelligence, which was at first conveyed in whispers and half sentences, was fully justified shortly after noon, by the house suspending its payments, while the question of affording the required relief was under con- sideration in the Bank parlour. It is understood that the unpre- cedented step was adopted by the City bankers, of addressing an appeal to the Directors of the Bank of England, calling upon them to come to the aid of the banking-house in question, not with a view to its reestablishment, but to avert the mischief which would have resulted, particularly in the country, had a stop been at once put to its payments. Of the -eventual solvency of the firm not a doubt can exist, when it is known that this application to the Bank was signed by all the City bankers, with, at most, two or three exceptions, and who further manifested the sincerity of such being their con- viction by subscribing a large sum to meet the actual demands, and consenting to postpone their claim for the repayment of it until the amount which might be required from the Bank should be returned. Of the embarrassment and difficulty that would have spread through the country, had not an ample and speedy remedy been thus afforded, some idea may be formed when it is taken into consideration that no less than seventy-two country banks drew upon this firm. With this timely relief, the creditors of the banking-house are rendered perfectly secure ; but it will involve the necessity of winding up the affairs of the house, and extinguishing Its banking existence.
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