The daily critic., 1890-11-11
wAsuNoroy, u. C.. Noyl1, 1890
THE F1NANc1AL sErL LArIoN.

by a singular coincidence the an
nouncement of the d.th md last divi
dend 70 he paid the creditors Of jay
CooEE & Co., whose failure inlSi3 pre-
cipltated the memorable financial panic
of that year, Is made al time when
another financial crisis IS threatened
Fortunately no great firm hasyc failed
dragging down with &c hundreds of
smaller firms and individuals TO none.
tarv ruin. as was the case In 1873.
Yet that we are dangerously near a
money crisis Is avery unpleasant tact
The'lispatches from New York. London
and Boston. published in Tue CEulc
Yesterday. told The story graphically
and was the first inumation of the
gravity Of the situation the Wash
ington -puhlic had Some months
ago the situation was grave and
panic was only ayeried by the
prompt action of the Treasury In
relieving the mouey slringency The
cause of the threatened panic at That
time aud OF The trouble now are very
AlNtlNUh hth hNH NiArN' say "ANA AHF
row they are in Europe
The roublc q, present seems TO he
tn Drain Of gold from the three great
banks OF England, France aui Ger
many. This amounts TO about $50,
600 .OOo distributed as follows Bank
uf England. SlO,OdOoOo Buy ct
France. S2f .U0OODu Bank 0f i-mtoy
Sa5 100000. Most OF this money hl.
gone 20 sustain enterprises and govern
u,nls 10 South America. Africa anl
spain. Even now an attempt is making
tn induce The Bank of France 'l us,lsl
certain English firms tu deliver FL
100000 10 Madril ihi, week. II tbis
te done ll Is thought it viii avert O
further Increase OF the rate Of discount
by the Bans Of Enganl anl ease up
the situation
The Bank of England las advanced
its rate Of discount for the double pur.
pose Of dl,couragiug the purchase Of
foreign securities aud deterring pr1no.
ers OF foreign enterprises iromb1rrovine
money 20 send ouf of the country, aul
to draw gold 10 itself from other c5un.
uies where interest p lower than 10
London, As interest Is higher 10 New
York than Ia London there has been no
drain Of gold from this roun.ry to
Europe on thai account
The disturbance Of the money market
IN London and Europe affects New
York and this cnuntry Ia a somewhat
indirect but nevertheless quite effective
way. Foreign holders Of American
stocks and other securities throw them
on the market faster than dealers on
this side can absorb them. Hence the
disturbance here. SO closely unItel are
Tie money markets Of the world In
these DAYS that severe strlngency felt In
any Of them Is almost Immediately
communicated 10 all the Others. A
panic IN London OF Paris or Berlin
would be very apt % precipltate panic
in New York, the severity Of which
would be measured by the heaIthlness
of our great business enterprises, our
railroads, banks and other corporations.
JAY GuULD thinks the stock market
here would be all right but for this
trouble in London tie says that any
one who has the courage % buy now
and the patience 20 wait viii make
n oHey. He saws his awu properties
atea.l li1hf. and he tninks railroad aud
HE pnpsTIes ge8er4lly are an right
The Treasury is watching the coarse
of The market closely, ready todo an
i cam 20 avert a panic II bought all
tHe silver offered iE yesterday and
aau1s ready 10 use ms available casf
IaIauce 70 the purchase Of four aud-a
half per cent bonds, the Secretary
oHsr 10 buy al par with Interest 70 ma
iudiy-se September I Is9l-alded sill
holding good.
All things considered. II Is not likelg
that there viii be any severe or pro.
louged panic IN this country no mattel
what ill may befsll our brethren bsyonl
The seas