, 1866-05-26
r-1
FROM EUROPE
Our London Correspondence.
FINANCIAL EAHTRQUAKE1s GREAT
=. BRITAIN.

EARTRQUAKEIs GREAT
BRITAIN.
Fearful GUNNER cinl Panic II Londau
ana Ths 0nEnnut atngsnud-tInsv the
1fanhA Drur tho t'rfsl>-FcrsiluAud
EHls4d and t'ouor Rtsmark-f'ouutU Uts-
nuRfR:A lnlurleA-Istc tkrPorted Sui.
cSde-VsvtuouH auds=uatIotl nf Eng
IInhznen-1ho Threatening War In
ts~rtuapy- american Securtttcs-PoAt.
script. l.
tFlom Our Own Coucspondcni-l
LONDON. NAY T., 1888.
Before this letter Reaches you, tho tete-
graph will have brought you notice Of more
fearful panic than has been known In the
British Metropolis within the memory Of
nan. I Iremcmbcr the '.'hard times" in Eng
land in 1S47, md was residing In New York
city in the ncrerto.hc-forgotten 81; but
have never seen anything TO equal the dis
may now affecting this city. and. according
to the teleGrams, all portions Of tho United
Kingdom. The crisis has come upon Us With
the rnpidity Q! q thnnderbolt, and the wide
spread deso1ation of an earthquake. Nobody \
seems to hare anticipated the moment Of CO.
iapee. but everybody knew perfectly we'll that |
our commercial relations were in q rotten |
state, md that the crush must come eventual |
ly. English1nen have been running mad on !
speculation +; credit has been Inflated to an |
nncxamp1ed extent capital las been invest !
cd in suci, manner that any sane man must |
have eeen bnt one alternative, either return |
from the Investment ut so distant period |
TINT It would comparatively lose all value, or
II '.llquidatIon" of the capital Itself with the
Company Limited" Many of our Oldest
md most eolld firms have been running a
muck in this f1cnzicl chase alter fabulous
dividends, and companies OF high standing
have actually been paying ten and fifteen
per cent, while tlcir shares were at
i've or trnbclow par. Tho day Of reckoning.
has arrived, and blank dismay and
blue panic sit TN the visaycs Of our merchants,
capitalists and bankers. Weeks ago, In
formed Your readers thu: such u crisis was
impending; hut confess 10 ignoring the ex-
'tuut of the catastrophe and the Deafness fthe
erash.
A month or two back, the Tsncs warned
its readers against the enormous exports be-
ing then forwarded to tie United States, and,
In Its usual Jupiter Maxitnus style, predicted
crisis In Your Republic. That with which
II threatened America has fallen upon our
selves, and with perfect Justice, too for
think it is easily to be shown that our four
years completely with the South, ,fsnd foscgonc
conclusion that your rebels would succeed In
| establishing their independence. have so dis
arranged tue ordinary operations Of trade IN
| this country is to ncces=itute the present con.
tlliion OF aflairs. The state of politics on the
Continent las ceztainly expedited the crisis !;
but, in common with others, am convinced
that our commercial completely with the Re-
belllon has laid the foundation for our pres
cnt snfierings; and that had we been less
sbortsighted, less dcsi7ous OF seeing the
Union broken up, VIC might have passed iu-
TACT through the storm Of European compli-
cntions.
The first explosion cnlne on Thursday, and
1t was IL loud one. The worll-famcd house
Of Overend, Gurney & Co., closed It's doors,
the liabilities being vnriously estimated at
from fifteen 10 twcnty millions of-not dollars,
| merely, but-Founds sterling. This, as the
Times very properly declares, is tie greatest
fnilure ever recorded in the British metropo'
lis. A year ago, 0sercnd, Guruey g. Co., be-
came Limited Liability Company, no less a
sum than half million Of pounds sterling
being given for the simple good Wilt OF the
concern, and that amount may now be re,
gardcd as an item under the head Of "abso
luie loss" We hear, Indeed, that the asset;
Of the Company will very nearly cover tht
liabilities" within TWO or three millions" }" Il
Is said hut looking at the state OF the Con
tincnt, and the panic affecting every business
| centre in the Kingdom, those assets when rc
allied Will, OF necessity, be largely deprecia
ted In value
Next in importance to this failure Is th
suspension OF peto 4 Belts for A,00o, ,0p ster
}-liug. l need not inform your readers VIII
Sir Morton Peio is, nor OF the character au'
extent Of his operations !; but ! am nblc to be
lieye that the suspension will only be tempo
rary, and gladly report that no ccsation vii
tnkc place in the works undertaken by tn
firm. Within the hour, the above suspcnsio
was followed by that oi another railway cor
tractor, William Shrimpton the lialsintlc
being set down at 200 .0oo and a little late
i. in the day We heard that the s.Impcrial Mel
camille Credit Association" aud the *.Consol
! dated Discount Company" had like wise gon
! TO the bad. Tie former concern rejoiccd
the snug little capital Of 5,ooo,o ,o)o sterling, q
which E5o0 900 were paid up +; whilst the Cor
) soltdatcd Discount Company had "pal
up" 4-,50 600 on capital Of one million.
understand that both companies arc about
), pass into "liqutdation,"-t modern nau
for Icthc, or Hades-aud we'll they may wi,
The stock Of the former at from 10 10 p
, cent discount, and the latter's ranging tro
91o7.
:, HOW THE EANK5 BEAR TIE CRISIS.
r. 4 First result ot Ovcrcud Il Gurncy's IA
;. urc was th. suspension of the English Jof
- Stock hank, the capital of whfch-eS0o. o
1sx.x r$s,tI y 81
r tfons. This corporation Is only two yer
= old, but IL has branches in some thirty
, more towns throughout the Kingdom, Al
;. its Suspension must seriously damage o
- provincial trade: Last November only
:. purchased for .cGa, 900 the business Of Oldln
- Cobo1nc & Co., formerly Rogers, Olling
, Co., Of Clements Lane, London aud 1t /
!, likewise absorbed many provincial banl
- particularly in the south OF England. n
-, tineham, Derby and Bristol arc cspccia
Affected by this failure Of the English Jol
Stock Bank.
=. The joint Stock Banks Of the mctropo
1e ralsed their rate Of allowance for llrpos
in yesterday from five to six per cent. +
al WIGS, ofcoursc, to attract customers, but
a. great is the panic that people are rushing
u: u: withdraw their funds from these cs.abli
-, mcnts, and lodging them In the Bank of Ell
rk land. No less thun six hundred new
ne counts were opened at this establishment
re fore p. NJ. yesterday.
Of In the midst Of this disaster, It is pleas
=, to record that the International Financial
'a1 ciety have issued the satisfactory notice u
~, ~ they arc 10 discount at the bank rate all tt
;es outstanding acceptances. The well-kno
n. banking firm Of Gufney & Co., at Norwi