The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1890-11-21
The Financial Crisis.


a combination of causes came near
preciptating widespread financial disaster
both in Europe and in this country last
week.
A heavy loan of the Argentine Rcpub-
lie was some time ago floatcd by the Bar
ing Bros The bonds were taken by the
firm and by its patrons. and as soon as
the financial difficulties of that country
grew serious these patrons of the great
banking house became dissatisfied with
their bargain The firm dealt generously
with those whom it had induced to pur-
chase the securities, taxing their resources
Russian government suddenly withdrew
from the house $l2 200 900, as it withdrew
$5,000,000 from French bank in 1852
which caused the collapse of the copper
trust and drove the manager Of the bank
to suicide.
The Bank of England, the Bank of
France and the Scotch banks however
came to the rescue OF the impcriled firm,
raised guarantee fund and saved it from
wreck. The Earrings are said to have
$4,000 600 of the finest commercial paper
in the world, and the personal property of
the individual members Of the firm is
,.,:,,,,,oJ - 9 , Onn n0O
These disturbed conditions of the Eu-
ropcan market however gave the bears of
Wall street an opportunity which they
were prompt to utilize. There has been a
deal of speculation in this country and
vast sums are tied up in investments
which cannot be suddenly converted into
cash. We have hardly as much currency
as we need for the enormous Industrial
enterprises which have been inaugurated
within the past few years in addition to
the ordinary demands upon the cash CAPT
tai Of the country.
According to the last monthly state
mcnt of the comptroller of the currency
on the condition of the national bank
note issue, it seems the net decrease in
that portion of their circulation which is
secured by bonds has been $5,24S, JAS
within twelve months; and in that portion
which has been surrendered and the bonds
to secure which have been withdrawn by
deposit with the treasury of lawful money
for the redemption of the notes, there has
been still larger reduction of $3l ,i4S. 602
which makes an average reduction of the
currency of S2,G2O.3O0 per month. Add
to this the number of notes that have
been worn out, lost or destroyed by fire or
otherwise, and the amount will appear
still larger.
1t is true the Silver bill provides for the
issue Of silver bullion notes to the amount
of $500, 600 per month; but against this
sum comes the reduction Of the national
hank currency of $2,G20, 300 per month.
1t must be borne in mind too that this
law has but recently been in operation,
while the decrease in the national bank
currency has been going on for years.
1t should he remembered, too, that Of
the national bank currency not yet sur
rendered S25.0G0,0O0 are secured Ivy a >
per cent bonds, which will mature next
September; and unless Congress in the
meantime allows the banks to deposit
other security, this additional amount of
notes must be surrendered on or before
that date.
This matter will doubtless attract the
attention OF Congress early in the APP
preaching session, and some remedy for
the depletion Of our circulating medium
applied at once. Otherwise We must con-
tinue to suffer from a strngcncy in the
money market and have to contend with
occasional panics.