The sun., 1890-11-16
BAR|NCS RESCUED.
The Bank Of England and
Rothschilds Step In.
A S55, 100000 GUARANTEE FUND
This was the Central Spot Of Weakness
in the Worlds Money Centrs
NEW YORK STARTLED AT FIRST.

NEW YORK STARTLED AT FIRST.
Prices Fell Heavily 1T the Very n .wa That
the Great Frrn Had Bsra In DiNleulty--
Rapid Recovery on Largo Rsv,ne
Orders and Improved BnsH Stn'e.
nent =. Monday VIII show How We
stand-Tbs Ennk Presidents Meet and
sny Thiags Look BETTER Ex am,a asioa OF
the Aecbauics' aad Traders Condition
by the Ciearinx Hou.e-Th.t Bn.k All
Kieht-Atohison R.,ded In Boston.
So much Of a sensat onal character has been
printed about Wall street the last ten days that
the statement that the flnan,i iai community
was startled yesterday for the first time may
seem surprisin2 to many people Yet that is
the fact. Thele has been great dehl Of sup
pressed excitement in and about tho Stock Ex.
change ever since the election. and there have
been Developments. notably the collapse OF tho
North American Company. Il speculative blind
pool. which dragged stock brokerage
firm down with It, that have served
to make life in Wall street moro
interesting than usual. Eut when the news
came from London yesterday morning that the
great commercial house Of Barring Brothers 4
Co. was embarrassed and had cen assisted
by syndicate form, by the Bank OF England.
very large proportion Of the people who deal
in stocks experienced q decided shock Tho
fast that tho firm had been guaranteed for
three years BY the syndicate referred to did
not for the moment seem to carry much
weight To tell the truth, a great many people
appeared to lose their heads for about IN hour.
during which period they played havoc with
the prices Of stocks.
Without heiER conscious Of it. Wall street
has been discountinG the misfortunes OF
Barring Brothers 4 Co. for two months past.
aud more particularly during tile last week.
The undertakings OF the Barincs In the Ar
gentins Republic have been the talk OF the
financial world ever since thsS were made.
and has been freely predicted, especially since
the collapse OF enterprise and speculation in
that part Of South America, that all OF the largo
foreign houses, including the Barings. would
have 10 pay dearly for their South American
ventures. Until recently. however worry few
people suspected that go old and conservative
a concern as the Barings had been betrayed by
errors Of judgment into making ventures that
jeopardsd its credit. Such proves to have been
the case.
THE DANK OF ENGLAND TO THE RESCUE
1t appears that the concern in spite Of its
enormous capital and resources and practically
unlimited credit, has been strained for several
months past. At the close OF business
on Thursday. Now 6. the firm cnms to
the conclusion that 1t was impossible to
continue business. They at once notified
the Bank of England. and the governors
Of that institution Immediately set to work to
avert a crisis. Their first step was to raise
the banks minimum rate Of discount on the fol-
lowing day. which was Friday. 1t will be re.
membered that that step created much sur
prise here aud exeited All unfavorabe effect
upon the stock market, for as a rule any
change in the bank rate is made on Thursday.
which is the regular meeting dny OF the gov
ernors. The object OF the advance was to
attract money. and particularly specie. to Lon
don, in order to strengthen the financial stua-
tion there. With the view OF further increas-
Ing Its own cash resources. the bank borrowed
three million pounds sterling or $4,000, 900 in
gold from The Bank Of France. which has the
largest supply Of gold Of any OF the Govern
ment banks OF Europe. During the last few
days this gold has been going into the bank at
the rate Of about $5,OOO.000 a day.
While these preparations were being made.
the Governors OF the bank. many OF whom arc
members Of leading private banking houses.
undertook to form q syndicate for the purpose
OF guaranteeing the aggregate obligations OF
Friday. and formal announcement OF the
matter was made yesterday morning
TERMS OF THE $50 500O0 900 GUARANTEE
special despatch to The SUN from London
says:
Tho circular issued by the Bank Of Eng
land TO tho syndicate was confidential. and
cannot be obtained for the public Information.
The crisis has been tided over. aud the Bank
OF England will make no public statement"
This action averts the insolvency Of the firm
and enables It to liquidate its Argentine re-
public ventures at it's leisure. or rather a.
market may de, elop for them. The condition
Of the hrm Is briefly stated to be rs follows:
Its total liabilities are estimated at fl5.00O.-
600. or about t75.O0O.0O0 while the assets
OF the firm. at their present dsprecI-
ated value. show . surplus Of E4.000.-
600, or t20,000.000. The guarantee syndi-
cate has subscribed u fund Of E1l.00O.-
900. or t55.000,O00. The Bunk OF England
subscribed E7,G00,000 and private bankers
k4.0OO.OOO. Tho private bankers are Glyn.
Mills 4 Co., J. 3. Morgan & Co.. Morton. Ross &
Co. @. j. Hambro. the Rsthschilds. and the
Raphaels 1t should not be inferred that this
vast amount OF money Is going to DO paid In 10
the house OF Bsrne Brothers Co.. hut thst
concern will be iusnished from tim, To timo
with whatever money It needs TO meet mntur-
Iuk ODukdtioub, uT6ltb' aUu OtuoI OetubHub IoC
which 1t has become responsible and 1t will
turn over its assets as security for the loans.
The guarantee syndicate is for three years. it
being estimated that within that period tho
concern can be liquidated.
EXTRAORDINARY FLUCTUATIONS IN wALLsTREEr.
The first news Of this important transaction
came to hand on Friisy night but definite In
formation was not obtainablo until yesterday
morning. whom q number OF private cables
were received on Wall street, and others by the
news agencies. The credit OF giving the Street
at large exact information about the matter
belongs to Dow. Jones 4 Co. the financial news
agents. Their frat bulletin was sent out Just
st the opening OF business. For a few minutes
the news did not have much elect. as the Lon
don market for American securities was about
per cent. above the prices made. .st tho close
Of business here on Friday. Besides. the
foreign, arbitIsge houses were heavy buyers
OF stocks. These, two circumstances would
op1lnRFilV hRva had