The New York herald., 1878-10-13
ENGLAND'S DISTRESS
Doleful Financial Outlook for a
Nation Going to War.
KING COTTON SICK.
Shall America Be Allowed to
Buy Gold in England?
[BY CABLE TO THE HERALD.1
LONDON, Oct. IL, 1878.

[BY CABLE TO THE HERALD.1
LONDON, Oct. 10, 1878.
The rumors Of impending financial dis
asters which have been forwarded
since the failure Of the Bank Of
the City of Glasgow found justifca-
tion last night in the announcement,
which was cabled to the HERALD, Of the
failure of the great house of Heugh Balfour
& Co., of Manchester. Investigations to-day
show that the larger of the two liability esti-
mates, namely, $4,000, OoO-is very near
the mark.
CoNsTERNATIoN EVERYWHERE.
At the opening Of the Cotton Ex-
change in Manchester to-day trade was
found to be almost paralyzed by the
blow. The excitement extended to ev-
cry branch Of commerce. An almost
univ rsal expression was, eff Heugh Bal
four & Company have failed, who is safe ?"
This firm was extensively engaged in the
East India and China trade, and held .
leading position in Manchester.
MASS lcHUsETTs' REVENGE.
The failure is reported to have been oc-
casioned by losses in the shipments of Man
chester goods to India and China. The
Manchester cloth trade and the exporters
of yarns are much agitated, and the failure
will seriously affect Lancashire commerce.
''purFEcrLY 'oRRIBLx, You KNOW"
In London the feature of the money mar
ket is the withdrawal Of nearly s1, ,0O0, 900
of gold from the Bank of England for trans
mission to Scotland and Ireland. The Times
money market article this morning says -
"a very significant circumstance is the
diversion from the bank Of about s100, 900
worth of United States eagles purchased
for New York at small advance upon the
banks price. For some days the govern
ment bonds had not been forthcoming as o
means of remittance, and it was feared
that gold would have to be exported,
but the supply having been renewed during
the last day or two it is not thought likely
that gold to any extent will be shipped to
that quarter at present. The demand at
the bank for advances was maintained upon
good scale at the rate of six per cent.
GREAT INNOVATION.
'If the indications shown to-day for the
first time Of gold being bought for New
York continue, the question of an advance
of the banks nominal discount rate would
have to be promptly considered. AL
though large amounts of gold have
been hitherto Withdrawn, they have been
entirely for internal requirements. but in
the present circumstances foreign drain
is very different thing"
uNwIsE spINNEns.
In addition 10 all the other financial con-
vulsions now comes the local cotton
strike in Glasgow, as cabled last even
ing. The employees of Grants cotton
factory, to the extent of 400 hands, struck
against the reduction of ten per cent in
wages, intimated to them es probable more
than fortnight ago. This number of idle
and starving people adds greatly to the dis
tress. Indeed, the outlook in the North
shows deepening gloom.
THE sHIPBUrLDrNG INTERESTS.
The Clyde shipbuilders have notified
their workmen of reduction Of seven and
a half per cent in their wages, to date from
tho 22d Of the present month. The reduc-
ton affects 40, 600 employees.
THE BOTTOM FALLING OUT
The Economist says:-"The rate OF discount for
two to three months bank bills Is AZ per cent, and
for three months trade bills, AZ a per cent The
stock market was steader In the early part OF the
week, but on Wednesday and Thursday the panic
IN gas shares and the many dsquieting rumors
anoat were made pretexts for general
reduction in prices and the political compca-
tions assisted the depression. The condition OF
the Bank OF England return also mad an unfavor.
able effect Bank OF England stock has fallen OF
SIX per cent in the past fortnight The entire for
eign list ofsccuritcs shows reduction. and South
American governments are particularly out OF
iavor. Chilian nves have fallen eight per cent on