Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-11-16
PITTsBURG. SUNDAY. NOV. l6, 1890.
THE FOREIGN FURRY.

One of the most sensational features of
the monetary complications, and one that
affords probable explanation of the string
ency at London which was the legitimate
cause of the trouble on this side of the ocean,
is the announcement of the embarrassment
of Barring Bros. This firm has for a gener-
alton been a synonym for stability and
worldwide credit. To learn that it is in q
position where it has to be supported until
its affairs can be liquidated, is an indication
that the foundations of credit in England
must be badly disturbed.
The statement of liabilities at SIS, QUO, 900,
and of assets at nearly 500, ,OOO 900 indi-
Gates what colossal affair this is. 1t is
reassuring to learn that the liabilities are
protected by the Bank of England, the
Rothschilds and others, and that the
assets will leave balance of about
$50 00O,O While such statements
are generally offered in mitigation
OF any great failure, the protection of the
Barings' creditors by the financial powers
of London will undoubtedly prevent the
universal panic if the suspension were
allowed to take place in the ordinary way.
While, of course, such an event could not
fail to cause furry in stocks. this dispo-
sition of the firms affairs will prevent the
complication extending into business
circles.
Indeed, the failure shows most conclu-
sively how entirely separated from the
causes which affect our industry and COM
merce are the real sources of all the financial
troubles for the past week or two. The
dispatches state that the Bank of England
has known OF the embarrassment of the
Barings for some time, and the course
which it has taken to fortify itself has
largely caused the stringency in London.
OF course such a stringency must affect
stocks simply by reason of the increased
sales on the part of foreign holders. This
depression was exaggerated by the money
kings and manipulators for their private
ends; but if the stock furry here has any
legitimate cause, it is one SO far removed
from the business Of the country as London
and South America.
Indeed, the cause of Barring Bros en-
barrassment only emphasized this separa-
tion Of the trouble from the business inter-
ests Of the United States They have simply
permitted themselves to be overloaded with
the bonds of the Argentine Republic, where
the initiation which, for years, has left our
kite-hying of 1873 completely In the shade,
reached sudden collapse some months ago.
Under such circumstances the failure was
10 be expected; although the banking policy
which would peril its existence by tying 1t
to so plain case of initiation as the Argen-
tine finances, is not what was to be expected
from house with the traditions of the Bar
ings.
The conclusion is not only plain that there
is nothing in the monetary complications
which either affects or is affected by the
operations of industry and commerce in the
United States but the fact is also pointed
out that while English investments in the
United States are not always completely sat,
isfactOry, they would have been much bet,
ter than the millions which the Barings
have dumped in South America. Even the
widest operations of our corporate manipu.
lators, or the most ruthless stock watering
OF the syndicate trust promoters, could moi
have saddled the English with as WORTHLESS.
securities as the Argentine bonds on which
one of the leading firms of the world stakeG
its existence and lost.
England has just had one of its periodical
fevers for running after wildcat invest
ments, and it is now paying the regular pen.
atty of discovering that its investments arr
uasta nonar