Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1866-05-25

FRov EURorE-A Panic on CHANGE
The Cuba at New York from Liverpool, MAY
l5tn, brings news OF money panic on the
London Stock Exchange which produced, in
twCnty-iour hours. failures and suspensions
involving over eighteen millions Of POUNDS
sterling, an almost total Suppression Of bust
ness IN tie great CeHTls OF commerce, the
suspension Of tie Bank of England Charter
act, and an advance OF the rate of interest
10 ten per cent.
The houses OF OveI,nd, Quincy Il Co..
Sir Morton Peto and Others. were closed and
Contractors and slccula;04s went by the
board on all sides, from the 9Th to the 18th
Of May.
Scenes Of excitement almost tumultuous
took place IN Lombard street. At the latest
moment new failures we've spo ken of in Liy
erpool, and tie name GA house "wcll known
IN the American trade Was "ireely" men
toned.
The Bank Of England raised its rate of DIS
count TO per cent On the lin Of May, and
On tie l2,E inst, aov9nc,d It to ten per cent.
The bullion IN the Bank Of England decreas-
ed to 1858 coo during the week.
United States ; 2os were (nominally) at
90 a 90 There was a general Improvement
IN all descriptions OF securities IN the l2lh
INST, and the 5-20s were az ~ 6G.
The first failure was that 90 compare
tivelY small bank, the English Joint Stock,
for $500 GOO sterling.
Then came that Of pet3 6 Belts Tor four
millions sterling theiI srst;s. howeycrwill
more than meet their hahiiiiics
Then that OF " Shrimp-on. railway con-
tractor. lor $500 coo, and the Imperial Mer-
camille CIedIt A-s,cia'i.r. whose PAID up
capital Is hall million STERLING, ana Con
sohdated Discount Company. with paid Up
capital Of a quarter OF a million.
Runs On numter ot private bankers took
place but were ali met
Tue action of Government m susuendmg
the Bank Charter act, and allowing the Bank
OF England 20 Issue five millions of notes in
Excess, was announced 10 the evening.
The London inns, II an editorial. says.
III ANYTHING can justify the suspension Of til
bank Charter act, the panic which swaved
the city 10 and fro on Friday Nav ID NAV
excuse the step, although We believe the
sslya o. terT0r was approaching its END and
would have speedily ceased had no infrs ctI N
Ct the Bank law ten Permitted. E,en now
it Is probable ihe license allowed to the
bank Will not be used. /, cannot, however.
b denied that about midday yesterday the .
''aHuH became q r0Uf. lie doors Of the I
most IosI, ctahle banking house were be- F.
sleged, more perhaps tV a mob actuafsd bv a .
strong sympathy irtah makes and keeps q
mob together, than by lLe creditors % banks, I
and throngs hs0rtng art .lJliJIag about I
Lombard street made Jnat narrow thorough /
iare impossible. Such excitement On all |
sides has not been WitUcs ID l.aoe .hs grand |
cTisis Of ISIS. Each inaa exaggerated the /
suspicious OF Eis neighbor, and until a re- |
port al that time uniOIniej, was circulated |
IN the afternoon that tie government had |
authorized tie bank directors to
Issue FIVE millions additional in notes. it /
seemed as If the tear and iistrust Of the I
commercial world had =.dden.y become 1
bundles The g,ateNen. was bssless at 4
me time, but served to aliay theepanic. |
which had no solid iCundaii1n Even the /
announcement Of Pet0's suspension did not |
revive the panic in its FIRST intensity, and /
the statement Of other stoppages produced
little effect
The London Naos applauds the wise and |
prompt action VI the government, and says
" During Friday the bank had extended Its |
loans aud discounts until the amount ex- |
ceeded four millions sterling
The effect was 10 reduce Ihc bank reserves |
by nearly three millions. This diminuuon
and The prevailing dIstrust justified the gov
ernment intervention.