Through the facilities afforded by a large issue of paper money, the delusion was kept up longer than it would otherwise have been. The first symptom of something wrong was the turning of the exchange against England. A diminution of issues at the bank followed. Merchants began to experience difficulties in meeting pecuniary obligations. Then took place a run upon the banks, some of which, both in London and the country, were obliged to stop payment. Between October 1825 and February 1826, fifty-nine commissions of bankruptcy were issued against English country banks, and four times the number of private compositions were calculated to have taken place during the same period. While merchants and manufacturers were without credit, their inferiors were without employment, and distress reached almost every class of the community. Some liberal pecuniary measures on the part of the Bank of England helped in a short time, rather by inspiring confidence than by actual disbursement of money, to retrieve in some measure the embarrassed circumstances of the country.
"On the same day," Mr Montefiore says, "when the death of an unfortunate speculator caused a general gloom to prevail in the financial world, I was asked by a gentleman if I had the courage to join him in a speculation, my reply was I would see to-morrow." "I fear," Mr Montefiore observes, "this day's awful lesson is quite lost upon him."
The entries I am now giving are very brief, sometimes abrupt, showing (probably) the excited state of affairs in the political and financial world, which appear to have induced him to form a resolution to withdraw entirely from all the turmoil of London.
March 5th.—Heard there will be no war. The ministers' plan of funding and repaying six millions of the bank has lowered the funds.
March 17th.—Attended the meeting of the schools; meeting of the society for granting marriage portions to orphans (Spanish and Portuguese Hebrew community).
March 20th.—The King of Portugal died; The Emperor of Austria dangerously ill; our good king much better.
April 9th.—Dined with Mr N. M. Rothschild; met there Prince Esterhazy, Duke of St Albans, his brother and two sisters, Lady Augusta Cotton, a son of Lord Coventry, and the Earl of Lauderdale.
April 13th.—The Emperor Nicholas insists upon the Turks evacuating Moldavia.
April 16th.—Attended meeting of the elders (Sp. and Port. Synagogue); signed 1171 cheques, dividends of the Alliance, sixteen shillings per share.
June 20th.—War commences again in India, after Bhurtpore had been stormed by Lord Combermere and peace made with the Burmese, when they had to pay £100,000 sterling, and cede a great extent of the territory.