The morning star and Catholic messenger., 1875-07-04
The Great Failures in England.

depression in the iron trade and the East
India trade has at last worn ont some large
houses and companies, and brought down
with them a number of olhers which would
pass for leading concerns were it not that
they are seen to be dependent. The day
of settlement, in the case of each class OF
representative failures. has been delay ed
by shrewd use of credit hut the charac
ter of accommodation paper always makes
itself understood, and it's currency comes
to an end. The end is perhaps most fire.
quentfy brought on hy financial pressure
IN the general market But the bankers
who by their loans sustain these people
who cannot STAND alone, and who must
withdraw their support some day, can have
no better time for forcing settlement than
q time of profound financial quiet like the
present. The public mind being sufficient
ly steady, or torpid, to endure a shock with
out falling into q panic, the time is suitable
for stopping business concerns which have
lost their vitality.
The London papers show that this was
practically the case with the Aberdare and
Plymouth Iron companies, and with the
discount house of Sanderson g. Co.. to
which failures that of Robert Benson g. Co.,
was natural sequel. Evidence of the
same kind may be expected with regard to
Alex Collier & Co., whose failure was re-
ported on Wednesday morning. The trade
which this house carried on with the East
Indies and other distant mark cts is believed
to have been losing trade for two years
past, and it is probable that some feature oi
their business has attracted, among those
who dispense credit in London, the kind OF
attention which results in an experimental
withdrawal of support. The result is tu
chow that unusual support was necessary
for continued activity and the conse-
quent liquidation has brought down a host
of connected houses. A better season for
nnIr Arr II
because OF the time of the year and on &C
count of the plethora of money for really
sound investments in every financial mar
ket in the world.
Notwithstanding these heavy failures
aggregatipg $75. .000. 600, there is no panic
there, and no prospect that there will be
one. The rate of discount at the Bank OF
storm In Lombard street, and it has made
no sign. The bank evidently considers
these failures as legitimate results of the
losses of East India and South American
trade, and the failure Of the long bankrup,
plymouth and Aberdare Iron companies
There is nothing in them, as there was in
the unexpected and portentous failure OF
tn endanger all credit and alarm the whole
community.
When the Aberdare Company, and, short.
ly after ward, Sanderson failed, the London
Economist remarked, "that had these sas
pensions come on an active money mafke,
crisis or panic might have followed " The
Messrs Sanderson's liabilities were estima
ted bv the London Economist, OF the Ssh
at Ct 900 600, or nearly $35 900 600. The
credit OF the firm has been good, and ye,
it is believed that their assets, apart from
their connection with the failed Aberdart
and Plymouth iron companies, will bs
good. Bot on the top of those failures
came that of Alexander Collier g. Co., Will
liabilities of SIS 200 900 Anderson & Co
81 900 600 n. Alexander 81 Co, 81, l,OOD
GOO besides at least half dozen Others
with liabilities of various amounts below
81 900 600.
Counting up the liabilities that are ap
proximatet stated either by telegraph Q
| in the London papers, from the failure o
the Aberdare Company two weeks ag
down to the last one reported this after
noon, and they make an aggregate @
about SIS, ,00O, 900, Many of the reporte
amounts are of course only wild guesses
but at least half dozen firms have bee
reported failed in the past two weeks
without any estimate of their liabilities be
ing given, 50 that it is probable 81, 700,
600 is not greatly out "f the way.