Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1866-05-30
The Situation on Change.

l. Inc panic begins 10 aDate, anu Une lnul-
cations increase that although many difii-
culties must yet be looked for, the effects
of the shock will be less general and disas-
trous than on former occasions. The gem
eral consequences Of the panic in 1857 were
far less disastrous than those OF 1917, and
there is good ground to trust that on Jhe
present occasion we shall show further
stride in our ability to bring those periods Of
mania within the influence of corrective re-
preston. On the present occasion there
has been no very serious squanderfng OF
national wealth, and the run encountered
has been mainly from fall in the prices OF
securities, which were previously calculat-
ed as symbols of what they did not actual
| ly represent. In this way, it has been esti-
mated, at least Gl30, ,000,0 600 SterLinghds dtSdp-
pedred eUerl since the commencement Of the
present gear, but it is simply from the APP
pointment of preposterous valuation, and
not from destruction or loss of anything
positive. Even of this at least half will be
| recovered with the return of confidence,
since the enormous amount is chiefly due
| to the fact that every enterprise and every
| security in the kingdom, including the
| funds and all the best foreign stocks, have
been beaten down by the disappearance Of
the fictitious premiums OF q number Of inferior
concerns. The prospect is much less dis
couraging than might be supposed. ...r.r
| An active demand Tor specie for the Con-
| tinent has been Occasioned by the discredit
awakened through the suspension Of the
| Bank act being by persons abroad con-
| founded with a suspension of gold pay
Inents, and this circumstance tends to re-
tard the recovery of our markets. Some
foreign balances at our high rates of utter
| est are being called for in gold from the
| fn pt Of I hain rDa a1 Utith
| doubt; at the same time the discount de-
mand at the bank continues extremely
| large, from the strict caution exercised by
all other establishments. On the whole,
| however, there was yesterday less DISPOSE
ton among individual capitalists TO hoard
| their resources and occasionally loans
were obtained at a point slightly below the
bank charge.
The demand for silver for the Continent
has been brisk during the last few days, and
the supply quite inadquate. Several
amounts of gold in sOvereigns, Prussian
I imperials, bars, have been Withdrawn from
| the bank for transmission abroad. f.
On the 25th Of April meeting was held
| at the Commercial Bank Corporation OF
India and the East, when report was read
showing that the agents of the companies
in India, China and America had all led the
|
appears that the directors have found it
necessary to resolve at once upon suspen-
| sion. The immediate cause OF this resOlu-
ton is the refusal of the London bankers of
! the companies to accept the drafts drawn by
| the agents of the companies in China, The
| capital is El,000,000, in four hundred thous-
and shares of f25 and is all paid up, but
| the company being incorporated by royal
charter the shareholders are responsible for
! a further million. Last year there was a
reserve of E23S,S02. The branches are at
Bombay, Calcutta, Foo ChOO Foo, HankOw,
Hong Kong, Shanghae, Singapore, HOko-
hama and San Francisco. The number of
shareholders is about six hundred.
| The circular issued by Dollet, Ommaney
& Co., bankers and army agents, West
minister, states that their suspension of
payments was taken with view TO protect
as far as possible the interests of their
friends, the monetary crisis having caused
a run on them during which they were mn
able to procure advances on their securi-
ties. ... -
[From the London News tcity artice), May 1871
| The recovery from the panic, which has
been most rapid, would have been more so
were it not for the recollection that the
| Treasury letters, while fixing ten per cent.
as the minimum rate of discount, reserved
to government the right TO recommend If
deemed desirable, an imposition of astill
higher rate. In the discount market dealers
/ consequently observe great caution until
they can have seen a reasonable assurance
that the bank rate will not be screwed up
higher. Hg.d
! The balance sheet of Mr.. w. Schrimpton,
| railway contractor, shows E220,000 liabili-
ties, aud assets nominal value, but depend
ent contingencies $3S7,000, A committee
appointed to report in three weeks. .'r
Fernie Brothers d Co., of Liverpool,
have determined to liquiClate under iuSpec-
tion.r 1t is understood the estate shows a
i large surplus. This course has been deter
mined on after consideration with the lead
ing parties interested in order to prevent
! the sacrifices which would be involved by
! an immediate realization of securities,
! which, consist toJa. large extent of shares,
and which are in the firms own hands.
/ Rumor had been busy with the names of
some large firms in Liverpool, but it was
understood that matters. had been satis-
factorily arranged, ra-1a r,d,i1 ..-. ..
| The only failure of moment in that town
thus far had been that of Wakefield, Nash
& Co., whose liabilities proved to be less
than at first represented, and who, it, was
hoped, would soon resume business .. q.
Consols on the 10th of May closed quietly
at S61@@S655. ?" ..4 .
All other Securities were decidedly better
than at the date of the departure of the
CuDa'T iiw ds,I.@ .wrw Ill. .7
| .rr RAILROAD FINANCE IN ENGLAND.
In the English House of Lords, on Mon
day night, Lord Redesdale made the fol-
lowing observations on railway financial
operations in England: There was another
instance of avery large concern. Ii had
been working for q eonsiderableperiod, aud
was very energetic line, which stopped at
no expense to carry out its objects He
mentioned itbecauseitw was connected partly
with the contractors who had Just failed,
and when, their lordships heard the pro-
eeedings that had occurred in regard to the
raising of the capital of the line they would
not be surprised at the failure of the con-
tractors or the financial embarrassment OF
the company Last year there was new
| scheme tor the extension of that line into
! the city, for which separate capital was
raised for large amount. In the course OF
the year the contractOrswent to the Credit
Mobilier Company for GL000,000. ,, -.
A Peer-What was the name Of the COM
pany? ''Nl' '.'' ,~ll.i 'Hj io sEGo og
Lord Redesdale-The 1Iondon, Chatham
and Dover railway. They raised that sum
on the following terms: For G2l cash there
was given 940 Of fully paid up stock, thus
sacrificing $40 to obtain Lit wasin effect
getting E571500 byra sacrifice of IG522 600
And this was noted at the. time as a mos
successful operation on the part'o Messrs
| Sir Morton Peto and Company, whoiwef,
quite satistied at getting money on suct
| terms. During the present wear the vain,