PETERSFIELD—STOPPAGE OF BUTTERFIELD'S BANK—On Monday last, a painful sensation was created by the suspension of payment by the banking house of Messrs. Butterfield and Co. The bank was not one of issue, but its liabilities are understood to be heavy. A slight run (owing to some rumour of the principal having absconded) took place in the early part of that day, in consequence of which business was relinquished before the usual hour of closing. On the following (Tuesday) morning, many persons from a distance came into the town, and were anxiously waiting to see whether business would be resumed,—but at the usual hour of opening it was found that the doors were still kept closed. On inquiries being made the only answer that could be obtained was—that business was suspended, and that for the present everything would remain statu quo, until proper persons were appointed to arrange the affairs of the bank. According to report these are truly in an alarming state. However, many parties felt somewhat re-assured by James Currie, Esq. (a highly respectable gentleman, and late a partner in the firm) having on the market day (Wednesday) stated that the liabilities would ultimately be nearly defrayed in full. The principal, and late acting partner, Mr. Butterfield, disappeared on the morning of the 18th inst., and has not up to this time been beard of. The bank was originally established by Colonel Hylton Jolliffe, the patron of the borough of Petersfield prior to the passing of the Reform bill, in 1833, in opposition to the bank of Mr. Hector, a Radical Reformer, by whom he was defeated at the election of that year. Established thus for a political object, in the Tory interest, it was carried on for some time with great spirit, until Col. Jolliffe had sunk a large sum in the undertaking (it is said 10,000l.), when he withdrew. The opposition, however, had previously been so far successful as to cause the stoppage of his opponent’s bank, in November, 1841; but within one month afterwards the business of Mr. Hector’s firm was taken by the London and County Bank, which established a Branch here, and all the liabilities of the old bank were paid in full. Our correspondent states that the present failure has long been anticipated by many persons into the town. It appears that many poor persons have lost the small savings of years, which they had deposited with Mr. Butterfield at five per cent., in sums of 150l. or 200l., and for which the only security they hold is his own personal note of hand. An individual offered a 30l. cheque on the suspended bank at Petersfield market for a sovereign, but the offer was not accepted. —Hampshire Independent.
(See also
02 Aug 1849
26 Jul 1849 & 27 July 1849)