The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1870-07-16 00:00:00

THE PANIC ON THE LONDON STOCK
EXCHANGE.
(From Tuesday's Timm

MuNDAY EVENING,

A panic more severe than any in the Stock Exchange
during the least sixteen years was witnessed today.
At one time the average further fall in foreign secu-
rities, am shown in actual transactions, was at least 5
or Co per rent., while there were many cases in which,
if additior al realiz etions had been forced, the redite-
tirn would have been much greater. Spanish, Italian,
Turkish. and Egyptian, as the stoke most dealt with
in the French market, were, of course, principally
sliced, but the alarm was in a great measure indis-
criminate, and United States' bonds Argentine, and
other descriptions totally unconnected with European
c repicationa, tegether with British railway stocks and
the shares of Joint. Stock Companies, even including
such as would be likely to be benelitted by war, were
all heavily borne down and in some instances almost
unsaleable. Consols, which this day week were at 93,
and wilich closed on Saturday at 9:4 to R, went during
• short period to 91 j, *price which is about 2 per cent.
below the average point at which they were maintained
duriug the two years of the Indian mutiny, and is
exactly tie same as the average during the fur equally
anxious years of the American struggle. This counts
of the market presents a repetition of all recent ex-
perience, the results of the dread of events havirg
almost invariabl) been greater than the se from the events
themselves. Thus, in the week before the declaration
of the Crimean War Consols touched 85i, and the aver.
age prize throughout the four subsequent years of
severe trial was 91Cf while just before the commence-
ment of the sear of France against the Au triane in
Italy the shares of the Lornbardo-Venetian Railway,
which was inns way seriously damaged by the contest,
went to as low a point as if it was apprehended that
the sole object of the respective armies would be the
demolition of that undertaking. Looking at these
precedents, it may be considered probable that if the
apprehended conflict were to break out forthwith prices
would not again be thrown to the level they have
touched today. While the public are rushing to

sell, no one asks whet they are to Co with
the money realized, or reflects on the folly of
expecting an ath plate priee being obtained
when there are thousands seeking to part with
their property and only a score or two of dealers to
whom at the moment it can be offered. Sach a panic
as that which prevailed to-Chy can be arrrsted only
when writer iOllB have been preposterously driven down
as to convince capitalists that, come what may, there
can lod little danger in buying. Accordingly, in the
course of the afternoon many pbrehases were made, and
a rebound of at oat 3or 4 per cent. was in the most
speculative cases estaldished, more favourable reports
from Berlin and Paris having concurrently arrived.
Weak holders havin to an extraordinary extent been
replaced by solid investors, the inherent character of
the market is greatly changed, but even yet the depre-
ciation shown by a comparison of present prices with
those of a week ego is enormous. At the worst
moment, reckoning class:re of securities common to
the Paris and Loudon Exehanges, it could not have
represented a tens sum than from GO to 100 millions
sterling. Among a few persons at Paris enjoying early
information great gains may have been made, but the
arnourit of general (llamas ocoasioned has been un-
usually severe, owing to the fact that for the last six
months oi.eristions for a rise have been extensive and
continuous in all the markets. Thursday next is the
commencement of the half-monthly aettlernent. and
there is reason to fear it will be attended by several
failures. Con-ols this morning opeued at 92 to went
t 912, and ultimately rallied to 92 to for delivery,
and 92i to 2 for August.
The 6... numeral letters to-day, detailing the general
imprei.sieres regardieg the present crisis, state that in ,
taoually wellinformed quarters it is believed that
General Prim never et& rtained an idea of tne storm
that would be raised, and that the rigid secrecy ob-
served was trir o'y consequent on aconviction prevalent
in Sloths ti at France has hitherto impeded every pre-
liminary nomination in order to favour the Prince of
Asturias. Prussia, it is reiterated, has had nothing to
do with any stage of the negotiations, and all the Prus-
sian journals, including those of Frankfort, advise per-
fect calmness, owirg to the faith that there can be no
logical pretext for a quarrel. S r far from there being
any strong feeling in Grrmany on the sut ject, there is
it is alleged, no doubt that any ordinary and courteous
repreaentations on the part of Franco would at once
have been attended to. By many people in Paris,
however, it is confidently assumed that the Emperor
is personally determined on war or on a great diplo-
matic success, and that the summons to the King of
Prusei to prohibit Pince Leopold from accepting the
throne is acJompanied by a demand for a strict execu-
tion of the Treary of Prague. According to threw
writers, the Due do Gromont warmly shares the
Euip-roes view, but M. Oilivi-r is wavering. Late
this afternoon remorts were circulated of a satisfactory
turn in the affair. The resignation of the Dee de
Gratuout constituted one rumour, and the withdrawal
by Prifletl Leopold of his aczeptance of the Crown was
another.