The Post this morning gives a detailed statement of the
progress and result of the negotiations between the Batik of England and the Northern and Central Bank ; from which it appears, that on Tuesday three weeks, the day on which the parcel of the Centel Bank was lost and recovered, one of the Directors and the principal Manager of that establishment were in London. endeavouring to obtain a supply of cash ; that, on the ground of inconvenience arising from the temporary loss of the parcel, they pressed the Bank of England to discount bills which it contained, to the amount of 100,0001; and that the Bank Directors required a statement of the affairs of the Northern and Central Bank ; which was given as follows.
LIABILITIES.
Actual circulation of the Northern and Central Bank
000,000 Deposits 240,000 Total liabilities 540,000
ASSETS.
Debts due to the Bank by its customers
900,000 Bank-notes and coin in its possession 190,000 Total liabilities 1,090,000
This 'statement was deliberately given by the Manager and Direc- tor above mentioned ; and adhered to, after it bad been pointed out to them that one of its highest officers had stated the amount of deposits, to the Committee of the House of Commons, at 750,0NY. instead of 240,000/. The negotiation, however, proceeded ; and the Batik agreed to advance 500,0001. on the understanding that the branches of the Northern and Central Bank were to be abolished, and its business con- fined to the chief establishment, until the advance was repaid ; the Bank to be the first creditor settled with,—to the exclusion of the claim of the London and Westminster Bank, who were the agents of the Northern and Central Bank, and had advanced to it 150,000/. in ac- cordance with the agreement entered into when the agency was esta- blished, and bad subsequently given additional accommodation to a large amount.
The gentlemen representing the Northern and Central Bank declared that the sum of 500,0001. would be ample for their wants. That sum was nearly exhausted before a complete official statement of their affairs arrived from Manchester; and which statement was very unsa- tisfactory.
In the amount of cireuhrtion there wee no very considerable variation from Rile Verbal account. But the deposits, instead of 240,0001., turned out to be about 700,000/. ; the advances made by this Bank to its customers, instead of 900,000/., were found to be about 1,300,0001.; while the stock of bank-times and coin in the possession of the Company, instead of 190,000/., was shown to amount to no more than 100,0001, or little more than the half of what had been allei,ed. The upshot of the matter was, in short, that, the Bank of Eng- land having already advanced 500,0001., to prevent the stoppage of the Nor- thern and Central Bank, found that it had done nothing towards the accorn- plialunent of its object, unless it was ready to double that amount."
The Bank of England resolved to advance a second half million, upon these terms-
" The Bank of England takes upon itself from this day all the existing en- pgements of the Northern and Central Joint stock Bank with the public, upon the condition that no new engagements shall be entered into by the latter until all its outstanding liabilities are liquidated, and until whatever advances the Bank of Enkland may already have made, or may hereafter make, for that pur- pose, be fully repaid. With a view to the due and regular fulfilment of this nuportant contract, the entire business of the Northern and Central Bank passes immediately into the hands of the Bank of England; two if whose Di- rectors, with some of the principal officers of the Corporation, will be in pos- session of the offices of the Joint-stock Bank at Manchester, and engaged in winding up its affairs, on Monday morning next.
There was an obstacle to the completion of this arrangement ; which, however, was got over yesterday. We have hitherto quoted the Post, but the following account of the arrangement of the Northern and Central Bank with the London and Westminster Bank, is from the City article of this morning's Times.
"At the time when the assent was given by the Bank of England to the first advance, which was to the extent of 500,000/., it appears that the consent of the London and Westnoinster Bank had been obtained to the postponement of their claims until the sum above named had been repaid ; and it was concluded, that having adopted this view of the case in the first instance, there would be no objection to the same course in regard to the further advances which were solicited. An absolute refusal of assent to take the same position under the new advances was, however, sent into the Bank parlour ; and the negotiation, in the very process of completion, was therefore broken off, the Bank positively refusing all advances except upon obtaining an absolute preference over all other claims. As soon as this transpired in the City, the private bankers and others who had made all their arrangements under the impression that all the advances required would be made to the Northern and Central Bank were compelled to suspend them. All acceptances which had been placed upon bills drawn by the Northern and Central Bank were cancelled, and parties presenting bills for payment were desired to call again in the afternoon ; as a hope ware entertained that the London and Westminster Bank would be induced by that time to with- draw their opposition, and to allow the promised advances to he made The greatest anxiety prevailed in the City among the parties more immediately in- terested during this interval ; but until three o'clock there were no indications of a settlement of the dispute. Shortly after that time, however, the Inns, the payment of which had been postponed, were taken up ; and it followed imme- diately almost as an irresistible conclusion that some agreement had been come to. The manner of it is said to be this—that the London and Westminster Bank obtain the personal guarantee of certain wealthy shareholders of the Northern and Central Bank for a portion of their claims; by which means, they will secure an earlier payment than if they had waited for the winding-up of the whole concern under the management of the Bank, which is the course that the affair will now take."
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