The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-06-19
THE LONDON FAILURES.

TEE PROBABLE EFFECT OF TIE LONDON DIS
Full VIEWS OF THE PROMINENT FOREIGN
BANKERS.
The recent heavy failures In London have ex-
cited some alarm IN this country, 1t being feared
that the reaction produced here might cause re-
newal or the sad experiences OF the last great
panic. HERALD reporter was detailed TO obtain
the views OF the prominent foreign bankers in
New York, who are In position to know the
exact condition OF the financial market OF London,
the causes leading TO the present failures ana the
prospects OF further extension OF the disturb
ance. IL will be seen from the views published
below that the opinions OF the leading representa-
tives OF the great foreign BANKING houses in New
York are decidedly OF a cheerful character There
was only one 0: the gentlemen who were inter
Viewed who gave the luguorious opinion that
there would probably be no panic, because
things were already as bad they well could be ~
but he was an exception. All the others thought the
American market was quite strong enough to
resist merely transtory and local disturbance In
Europe, and one that, so far as can be judged
from present advices, does not threaten TO as
sumo the formidable proportions or q panic"
VIEWS OF MR. JOSEPH sELIGMAN.
Mr.. Joseph Seligman, the well known German
banker, thought that the efect OF the recent fall
ures IN London would scarcely be felt here. He
did not believe that they WOULD ever cause panic
In London. There were grounds Tor serious
apprehension, as money was ABUNDANT. Money
could easily be procured good securities AMI
the aspect OF things In general OF an en-
couraging nature. The houses that had failed
were unreliable houses that ought to nave Jailed.
WHAT Mr.. JAMES ". BROWN SAYS
Mr.. James NJ. Brown was also OF the opinion
that the effect OF the failures in London would be
only transitory. The houses that had JAILED had
undoubtedly been heavy losers for some time past.
and their failure was not to be ascriped TO gen.
eral causes likely to produce panic. The con-
neclion between them and the American market
WAS so slight tnat the reaction here would not be
noticeable. Mr.. Brown gave these opinions with
some qualifications OF uncertainty, as he had
received no aoyces from London. but faid
that II a general panic we're probable
his correspondent would undoubtedly have noti-
withdrawal Of money and us Judgement IN the
Bank OF England did not indicate a great lack Of
confidence, ana replied that this was only one of
the usual precautions taken In time OF disturb
ance
MR.. JOHN P. MoRGAN's OPINION
Mr.. John r. Morgan. Of DrexeL Morgan Co.,
thought that the London crash was only confined
to few houses aud dld not amount to a serious
panic or anything approaching TO IL. He was una
Ole o Judge OF he causes OF the disturbance owing
to the total lack OF advices on the subject. lie
secuted the idea Ihas It sould produce any partc-
condition ne regarded IN a favorable light The
operations OF tue syndicate would not DE In any
should bring about panic, which was very I'm
probable.
VIEWS OF MR. Jesse sELrGMAS
Mr.. Jesse SehRman. nnancier oil well-known
repute, expressed himself freely anc canuIdly on
the subject. The disturbances In the non trade
England, he said, were undoubtedly owing to
the TACT that The United states had almost wholly
ceased TO import iron; that the demand for rails
In England mad been reduced 10 next TO noLning
50 that the iron mills were standing stIil aud the
iron INDUSTRY generally 10 para. yzed condition.
American cotton was so low that the East india
houses OF LONDON could not compete win the
American iml orters OF cotton. these failures
instead OF weakening American credit, would
strengthen 1t. showing as they ala Thar monetary
disturbances were not confined 10 America alone,
and that Europe was also suffering from inc con.
sequences OF Over-speculatl0n &C. Some OF tnc
London exchange houses that had failed were 81
fraudulent Character, 50 tnat tnelr failure was
rather benefit 10 tue LonGon market tnan oth-
erwIse. No recussion OF the financial wave would
be lelt here.
A DISTINGUISHED FOREIGN BANKER
who represents one oil the ncaest houses in Eu-
rope was the oniy one wnO.c views we're rather
gloomy. lie also thought that ne disturbance
was local one that would nos extend nltner
bur at the same time expressed the dIscouraging
opinion that no ANXIETY neeu be ielt, as tnIngs
were so bad that they could scarcely be any
worse. II was almost impossible TO get more
than two or three per cent interest for money
the pronts In ali ginns legitimate business had
dwIndled down 10 nothing, almost. ana the specu-
latlng mama was extending into every raminca-
ton OF business. tie predicted that the last men,
toned calamity would beIal the country at the
time the Drst Atlantic cabIe was laiu, Tor ne Iore-
saw a. the time that this Geographic communIca-
ton with Europe would stimulate speculation TO
alarming degree. Instead OF heing Blessing It
was actually the worst tniug that ever happened
TO American business. me farmer IN oneida
county VINO manufactured cheese Tor expectation
TO Europe receive now every day Adyices az to
the price or cheese In England, aud by calculating
the rates OF freight DC, could speculate as 10 his
probable profits. me legitimate business OF the
county, IN the opinion OF this gentleman, per-
fectJ proslrate, aud even pane IN London could
scarcely make matters worse. superabundance
OF money was as disastrous as n scarcity, and TINS
was Just the Difficulty now. IL was remarkable
that among all toe countries OF the world the only
one whose business ana finances were IN a normal
and sound condition was conquered France. The
causes oi tue remarkable fact ne did not step TO
indicate. but they nave already been alluded 10 IN
the columns OF this journal
MARRIAGES AMI DEATHS