Telegram-herald., 1890-11-24
IT'S NOW IMPROVING
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Oaz 1s4aksEaettss.

FINANCIAL NtIeaiAf ~ utAkt Nt1Ns
Co.. saieh slll b. mailed % tAsir Gus
toners Monday sil ssY;
The announcement one week ago, Of
the embarrassment OF Barring Brothers
a Co. of London. Uas tne reai cuiml-
nanon of the ioint cFss.s IN London and
New York Previously. tie speeuit-
live 0ser-construction OF railroads ln
ths country haa produced OK both
aides theGf Atlantic perhaps the effect
upon prlces that vas leEitimately due
% that special cause. Bat there stN
renamed the inevitable reaction from
the immense and inflated new capital
izaIions 10 loans. railroads aud bonds
in south America. For these, the
B4rngs were known % be Principally
responsible. and the fear that the re-
sources Il the great house might not
suffice % carry them through the ia
evtu0le liquidation Of their commit
ments had been far more the cause of
The settled distrust that has hung re-
Gently over London than the liqulda-
ton OF the ~ alr0sd iuHanOn IN the
United States. Fortunately, simulta-
neOusly WITH The news Of the trouble OF
the Barings came the announcement
that their Affairs had been taken IN
hand by A syndicate including the
Bank 0f England and several of the
wealthies % London bankers; that all
their Obligations we're guaranteed by
that combination, that, to more fully
protect financial affairs against the
shock 10 confidence, the government
had authorized the Bank OF England 90
issue circulating notes in excess Of It's
legal limitations, and also that the
Raak of England had negotiated with
the Bank of France loan of three 20
four millions sterling IN gold. Al
though these extraordinary precautions
implied the existence of a situation of
very unusual gravity, yet their com
pleteness and the fact that they were
taken In anticipation Of the trouble, in
stead OF beng adopted as an after
remedy, had the immediate effect of
checking the growing denOrallzation
and preventing a cOnvulsiOn OF credit
of possibly unprecedented dimensions.
The financial world owes much 20 the
courage and the intelligent foresight
with which both the banks Of this city
and the banking interests OF London
have preferred 10 prevent panic rather
than permit Il 20 culminate and then
deal with u AZ an unmanageable stage.
10 may be stated. however, as IN part
explanatory Of the prompt antlcIpatory
acton of the Clearing House, that its
managers had authentic Information Of
the position Of the Barings at about the
same time ss il became known to the
Bank Of England.
The genera financial situation is i'm
proving; but, with the marked conserv-
atlsm that prevails IN every direction,
the recovery Of confidence must ne ex-
pected TO be gradual and slow. 1t is an
encouraging symptom that, considering
the past severity OF the Crisis, so few
failures have occurred on the Stock
Exchange. It Is still more so that the
vigilance of the Clearing House, with
regard 20 the standing Of It's members.
has disclosed such a generally sound
condition Of the banks, and that the
numerous other financial institutions
have exhibited no signs OF weakness.
This ia the most satisfactory evidence
that the speculative arrangements from
which We are suffering have not appre-
clahlv involved our credit establish
ments, which will prove 20 be an ele-
meut OF very great value IN the coming
process Of recovery. Another favorable
AANtWA ~ AAlaAN AAAt tDAtANH W AAA@tAe 81
Wallis. has not involved any suffering
20 interior Interests. beyond a partial
check % the free movement Of COM
mercial credit. Indeed. the crisis is
strictly confined 20 the speculative and
investment interests; IN which respect
the situation very favorab.y differs
from that OF most former upheavals.
Nor Is there any reason to spprehend
that the indirect bearings OF the Wsll-st.
arrangements will. for anv sleugthy
period. affect commercial interests I'M
favOrahly. For TIE remainder OF the
year. merchants may be Inconvenience
from the stringeucy OF discounts; but IL
is reasonable TO expect that, With the
opening of the new year. the natural
reaction from the present severe strain
will bring money 10 this city. while the
great fall in stocks viii reduce the
amount % be borrowed on that I'M
portaut class Of COiIaterals. IL - not
Impossible that We may be nearer re-
Covcry n the stock market than - a.
the moment supposed s cons .derabie
amount az cap is held out Of use
SIMPLY until 70 IA reasonably certain
that mo- turt0cr untowsrd accidents are
kelly 60 occur here or I'M London. and +,
when tnat point of assurance Is
reached. recovery silt progress much
more rapidly than hitherto. The
Stock Exchange houses have been put to
an unusually severe test during the
week hy systematic attacks from the
"hears.r which have been directed
aga net nearly every hrm of important
sanding and the fact that this test has
brought Ont TO srga of weakness ia suY
quarter warrants the CONCLUSION mat