The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-05-22
FINANCIAL PANIC IN LONDON.
Great Excitement tn the Mercantile
CIrcleA-FaiIure of OVerend, Gurney a.
CO.-Other Large FHiIures-The Bank
Rate OfInteresC Ten Per Cent.

CO.-Other Large Failures The Bank
Rate OfInteresE Ten Per Cent.
HALIFAX, May 21 -The financial panic culmi.
mated iate on thursday afternoon, the 10th, IN tue
suspension Of Overend Quincy & Co. The business
was converted Ill August last into limited liability
company, with nominal capital of five millions
sterling, oil which q million and half was paid up
lhe liabilities are stated at from ten to twelve mil
lion pounds sterling The break down is ATTRIBUTED
TO heavy speculative sales OF shares, which forced
them down from ten premium to discount. De-
poslsors Then began to get II armed, and the drain
on the 10Th was very severe.
Applica ion Tor assistance was made at the Bank
OF England, but the governors declined to grant
any, on the ground that 1t would be vain CRISIS
like the present to assist one abllsh ncnt unless
they were prepared to help other applications as
well. 1t was too late to make call on the slare-
holders, or take any other step. Tho doors of the
establishment were consequently closed. The failure
does not compromise the GurneY Bank at Norwich
On the following morning FRIDAY, the 11th) ln-
tense excitement prevailed in the financial circles of
London Liverpool, and other centres, aud business
almost suspended.
The lines ofthe 18th, in Its city arr!clo. says:-
The Bank OF England JesterGaY ased the IA @ of
discount nom eight to nine per cent, and charge
special advances TO 10. The pressule evcn at these
terms, was enormous and 1t was only on uneXcep.
IiOnaDle bills that an ac ,pmmOdation could oe OBJ.
tanned. Meanwhile, additional and most serious
disasters were houry announced rhe first was that
OF comparatively small bank-the Enpsh JOINT
Stock-ior fS00 000 sierling. then came that of
Peto Belts, Tor "a 100000 sterling; then that oil
W. Shrimpton, railway contractor, for G2OO,OO0,
and finally it was understood that the Imperial
Mercantile Credit Association, whose paid up
capital is half million sterling, and the Consoh-
OF quarter OF mi lion sterling must with eX.
tremelY heavy commitments pass into liquidation
During the day the most intense anxiety vas mani
tested TO ascertain il any step had been taken by
leading merchants and bankers to represent to the
Government the extent OF the crisis, and false
notification in the Stock Exchange to the effect that
an extra issue OF bank notes 10 the eXtont of ton
millions had been authorized caused at one nme a
general rebound in prices. Later III tue evening il
tTausprcd that the Government had resolved 20 sus-
pend The bank Charter act.
The assets OF teto & Belts even under the most
In,ttp nv tiva mil
hons sterling, and tits confidently assumed that in
ashort time roposition tor the adjustment OF all
CLAIMS can he submitted. Every one will nope that
tins may be the case, for Sir Moron Peto and his
partner rank prominently among those who nave
carried the lame OF English enterprise TO al parts of
the glObe, while they have commanded high personal
regard in all sections among herr counlr, men
II is aheacy known that several failures among
dealers VIII be announced IN connection with the
approaching halt monthly statement on the stock
Exchange; A large number of country bankers
were IN London to confer with their London
agents to provide against all danger from local
runs. Rumofs were circulated i'll the course OF the
cav ol severe run on the bank of BRrnets Hoares
llanbuly &. Co., but they were entirely without
tounoatlon. There was run upon two or three
other banks, and being well met soon subsidized
Both in London and in the country ample preOara
tons tons were very generally made for such contn.
gencIes.
In the Liverpool Cotton market there was an in
creased panic at the commencement on Frd ly, but
less unsteRdln, IS at the G ose M -
At Manchester there was comp,ete manic A.
GlasRow the non brokers resolved 10 suspend Dus.
ness till Monday.
I'LL
almost wholly nominal Taking INTO account the
deprcciation that has simultaneously occurred i'm
EugIsh funds, railway aud loreiFn securities orc
the dimnuton in the market value of this proprrty
snce the beginning OF the years may be considered
TO ach one hundred and thirty millions sterIng to
say nOGmnO of the losses COTTON ana cotton Goods
iron, and other articles
he IHlcS IN an editorial, says 60 II anything can
justify the suspension the bank charter ac, the
pgnIc which swayed the city to irO on Friday
may excuse the steps atIO lEh we believe the reign
OF terror was app OaChIng its end, would have
speedily ceased, had no niIaction OF the bank law
been PEI mtted. Even now It IS probable the IIcense
allowed to tue bark viii no. be used. Ii cannot
however, be denied that about midday yesterday
the tumut became Il rOut The doors OF the most re-
spectacle banking houses were besieged mOrs per-
haps by mob actuated by strange sympathy
which makes and Keeps a mob together
than by the creditors OF the banks and
bard street made that narrow thorough
1ale Inlassable such excitement on all sides has
not Deen witnessed SINCE the great CRISIS OF 1925
Ehch man exaggerated the suspicious OF his neigh
Dor ana lntll report, ut thut umc un founded was
circulated IN the afternoon that the Government had
additional III notes il seemed as it tue car and dis
trust OF the commercial world had suddenly become
DOuI deSs. lhe statement baSe,ess at the time
but served 10 GlaY thc panic winch had no SOLID
foundation: Even llle announcement OF retO's sus.
penslon ara not ioHiNe the panic in rst INTENSITY
effect" VIZ '.-'|' 10y
/" he Times adds s;-"Wo need to be persuaded that
had the Government STOOD firm. tile panIc would
have su sided iiseI and II, a. we are to exDect
confidence VIII be speedily restored, we shall attri-
butte il 10 nalura caufes rather Than to the iuter-
tereTcr OF tho Executive Government "
M Ddiiy Noiss nppauds The wise ana rompt
~ ri inn