The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-05-24


Our European files by the Cuba reached this
city this morning. The papers are dated to the
18th of May, and contain very important details
of the rise and progress of the financial disasters
in England, already reported by telegraph with
a report showing to what extent the panic pre-
vailed on the Continent.
Failure of OveTend, Gurney & Co.
from the London Times City Article), May IL.
The panic has at length eliminated in the
most important and serious stoppage ever an
nounced in the city of London. Overend, Cur
ney d Co. (imited) we're this afternoon COM
PEELED to close their doors. Their liabilities
amount to about fl0, ,000 900, of which e. O0O 900
Is to depositors who hold bills as security and
1880, 900 is to uncovered depositors. The paid
up capital is Gl, 900, tue nominal capital
being f5,0U0,0 900 in shares of ESQ each, on which
Flo has been paid and the closing price this
evening of the shares, which SIX months ago
were at nearly ten premium, was 81 discount
AS the sum of OF f500,O00 was paid to the old
firm for the goodwill on the constitution last
August OF the limited company, that sum must
now in any case be regarded by the shareholders
as irretrievably lost, but 1t may be hoped that
the assets In hand will go lar to prevent a total
exhaustion OF the remaining fl,0O0,0OO of paid
up capital slnce as recently as the past week
or two, the managers firmly believed that at the
meeting about to be held they would be able to
show profits sufficient TO cover all losses, incud.
ing that from the frauds of Pinto, Perez Il Co.
and to admit OF the declaration of a dividend
The breakdown has been the result of a run of
speculative sales OF the shares. The general
public regarded the company With favor, and,
although IL was well known that the old firm
whose property not many years back was reck-
oned by millions, HAD greatly dissipated their
resources by series OF imprudent advances, il
was believed that those OF the partners who re-
mained to manage the concern would henceforth
conduct the business with an especial amount of
caution, owing to their full consciousness of the
mistakes by which they had suffered in the
tai fnIlu
do so is still the general opinion, but every cir
cumstance has been against them. The FREQUENT
recurrence OF disasters affecting the assets of the
old hrm constantly affected the reputation of the
new one; the notorious failure OF Oyerend
Watson Co., the railway contractors, operated
inluriously from the similarity of name; the
heavy fraud of Pinto, Perez & Co., the general
breakup of the finance companies, and the
hourly expectation Of a Eur opean war were all
calculated to try them to the utmost. But
there is no reason to doubt thev would still
have worked through had it not been for the
persistent sales OF their shares on speculation,
AS soon as these operations had brought the
quotations to discount the deposltors began to
take alarm, until at length the drain this morn
ing became too sharp to be resisted. ApplCa-
tion was made to the Bank of England, but the
Governors telt it would be vain in crisis like
the present TO help one establishment unless
they were prepared to help all that might be
compelled to come upon them. There was no
lime to take any other step, such as making a
call on the shareholders, or seeking assistance
and, moreover, the pending difficulty had be.
come sufficiently known to render any pallia.
tive useless. Accordingly suspension was re.
solved upon.
The question now is, what is to be done9 The
stoppage OF Oyerend, Gurney & Co. will be the
signal tor the suspension OF every other large
concern that has lately been known to be under
pressure, and Of every banking and finance COM
pany whose position has been assailed by rumor,
or whose shares may be selected for attack in the
Stock Exchange Bills of parties whose engage
ments are enormous, and whose fortune are be-
lleVed to be ample, have already this afternoon
been returned, and unless prompt steps are
taken the close OF the week will be marked by
disasters such as have never been equalled in
our commercial history. The sole evil now to
be dealt with is panic. II is the instantaneous
transition from state of wild expansion of
credit to total stoppage OF credit that has
brought us to the present pass. The introduc-
tion of credit in q new, safe, and legitimate Way
can alone supply the remedy. Tomorrow morn
ing, without the slightest avOidable delay, the
leading institutions and firms who see the jeo-
pardy of the moment should iorm a deputation
to the Chancellor OF the EXchequer with request
that he should authorize the Bank Of England
to issue Understanding post notes, in the shape
OF ordinary bank post bills, either at the custo-
mary seven days or thirty days or for any other |
period that might be considered better, to any |
extent they may deem necessary and prudent |
upon unquestionable security. If this or some |
analogous request be acceded to there will be 4
reason to expect an immediate subsidence of all |
unnecessary danger. If, on the other hand, |
nothing Is done, and people are left TO trample |
each other down, the Government will find |
before long that the commercial and revenue
leturns of 1866 will be of character very diff
ferent from those which have enabled them in
each succeeding budget for so many years past
TO congratulate themselves and the nation on |
the easiuess of their task and the unbroken
course OF our material prosperity.
ir A "Black Day. ON Change.
From the London Times (Citg ArtiOLeb May H.
The Bank of England this morning raised their
rate of discount from eight per cent. TO nine per
cent, and their charge for special advances to
ten per cent, The pressure even at these terms
has been enormous, and 1t was only on unexcep-
tionable bills that accommodation could be
obtained.
Meanwhile additional and most serious dsas-
ters have been hourly announced. The first was
that OF comparatively small bank, the English
Joint Stock, for eight hundred thousand pounds.
Then came that of Messrs. Peto & Belts for
four million pounds.
Then that of Mr. w. shrimpton, the railway
contractor, for two hundred thousand pounds;
and finally, IL was understood that the Imperial
Mercantile Credit Association, whose paid-up
capital is Ave hundred thousand pounds. and
the Consolidated Discount Company, with a
paid-up cspitalOftwO hundred and Ghy thousand