Los Angeles herald., 1890-11-16
there being no halt in the downward
movement before the end of the hour.
Semi-Panfc

there being no halt in the downward
movement before the end of the hour.
A Semi-Panic.
At IL a. m. a semi-panic prevailed.
Prices gave way, and the brokers were
dismayed at the prospect. Lackawanna
led the downward rush with decline
of 8 per cent. from 1927 to 1881.
Atchison sold down to "a; Rock Island
to 6l1a and sugar to so, the lowest
prices on record for those stocks. Can
ada Southern and other regular divi
dend papers were thrown over, as well
as speculative stocks. Canada Southern
dropped to 43.
Wizards were best held and showed
less excitement, but the recent heavy
shrinkage in these stocks left less room
for further losses. The downward move
ment was finally stayed, however, and
at IL: 80 better tone prevailed with
some improvement in prices.
The Crisis Over.
After IL :15 there was rally caused
by the following cable from London
THE guarantee fund to Barring Bros. &
Co. is stated to amount to 100000, 900.
The various financial banking and dis
count houses guaranteeing the accounts,
state that the crisis is over, and their
failure has been avoided"
Kidder, Peabody & Co., agents here
for Barring Bros. & Co., London, said
they had private advices from London
that the trouble had been completely
arranged. The trouble was doubtless
caused by the depression in Argentine
securities, they said, and their house
was in no wise affected.
In an interview this afternoon,
Thomas Barring said it was true that the
Bank OF England, the Rothschilds and
other large English banking houses had
agreed to guarantee the credit of the
Barings to the extent of eleven millions
sterling.
Banker Seligman, speaking OF the
condition of affairs in Wall street, said
he presumed that if within reasonable
time the market takes favorable turn
here and abroad, the Barings will take
up their collateral and go on as always.
No one can say that this is the begin
ming of the end of the Barings, for the
simple reason that no one knows any
thing about it.
The Strain on London Finances.
The Evening Post says: Three months
ago, when the Argentine revolution first
began to cripple the resources of the
houses floating Argentine securities, an
examination OF the affairs of the Bar
ings showed clear balance OF 915, ,000,-
900 over and above all liabilities. A
shrinkage of Ell, 900, 900, or say about
500, ,OOO, 900, in three months, shows what
a tremendous strain London finances
have been subjected to. The prospect
of a 1esuscitation of the value OF these
Argentine securities is good.
1t is reported that a meeting OF the
bank presidents of New York, is to be
held between now and Monday morning,
to consider the financial situation, and
determine upon policy of conservatism,
if events should justify or necessitate a
joint interposition in that direction.
rhe Barings' Difficulties.
The Evening Sun says the facts in re-
gard to the extraordinary money stu
ton which has prevailed in London for
the past ten days may be summed up
authoritatiyely as follows: Owing to
the extent of their operations in rail
roads and lands in South America, the
Barings have been more or less embar-
rassed for over six months. Last Thurs
day week Barring, at the conclusion of
business, decided that it was impossible
for them to continue. Friday morning,
the 9TH inst, they SO notified the direc-
tors of the Bank of England, who inn
mediately convened, and startled the
whole commercial world by raising
the rate of discount, proceeding most
unprecedented, and called q halt on
speculation at every money center in
the world. The present week has been
one of most painful suspense in
European banking circles. and this feel
ing has been reflected in minor degree
in New York, where only few of the
more important houses, having
European connections, have been aware
of the real nature of the fficulty in
London.
The article goes on to say that of G11,-
100000 furnished the Barings, the Bank
of England furnished s7,000,000. The
Barings are allowed three years to adjust
their affairs. All actual peril is now be-
lieved to be past.