The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-11-16
ESCAPE OF THE BARINGs.
A Review of the Crisis Just Passed In
London.

A Review of the Crisis Just Passed in
London.
NEW YORK, Nov. 15.-The Eueni1lo SUN
prints the following: "The facts in regard
TO the extraordinary monetary situation
which has prevailed in London for the past
ten days may be summed up authorita-
their operations in railroads and lands In
South America, the Messrs. Barring have
been more or less embarrassed for over
three months. 1t was not thought that it
was serious, owing to the reputation of the
firm in respect to its resources and in re-
spect to nearly century of the most suo-
cessful conduct of the banking business
upon high and honorable basis which ha d
given the house world wide reputation,
equal almost to that Of the Bank of Eng
land itself
READY TO GIVE UP.
LAST Thursday week Messrs. Barring, at
the conclusion of business, decided that it
was impossible for them TO continue. Fri
day morning. Nov. 7, they SO notified the
directors of the Baak of England, who
Immediately convened and, as will be re-
called, startled the whole financial world
by raising the rate, proceedings which were
almost unprecedented and called halt In
speculation at every money center in the
most painful suspense in banking circles,
aud this feeling has been reflected In a..minor
degree in NeR York, where only q few of
the more important houses having Eu-
ropean connections have been aware Of the
real nature Of the difficulty in London.
THE REPORT OF THE COMMITTEE.
1.-THE report of the committee which had
to deal with other private banking houses.
as well as with that Of the Barings, was
made yesterday, and as the outcome had
been pretty generally anticipated the Bank
Of England and the private financial asso-
Citations which acted with it were ready to
meet the situation. The strengthening of
the resources Of the Bank of England has
bsen carried out successfully during the
week, the Bank of Francs having come to
its assistance, SO far as the supply of gold
is concerned.
ENTIRELY RBAssURING.
I'VE have seen to-day more impprtant
private cables covering this extraordinary
transaction, and they are, as might be sup
posed upon reflection, entirely reassuring as
to the London situation. IT persons inter-
ested would stop to consider that the credit
of the Bank of England, and the strongest
financial institutions in Great Britain, has
been substituted for the impaired credits of
the great houses affected, it would be seen
that no patchwork remedy had been
thought adequate. In taking charge of the
assets and credit obligation of the Barings
the term of three years has been re-
served in which TO effect the necessary read
justnent of their affairs.
SAVING THE NORTH AMERICAN.
"What has been done in New York in a
case remotely parellel-that of the North
American Company-has been done in Lon
don 10 much graver emergency. That it
has NhAraunhlu nd hat ho
danger of the situation is past, we have the
assurance Of the highest authority, both in
New York and London. This feeling was
not reflected in our stock market, at
least in the early hours There was
dearth of generally available news
of trustworthy character, which was
taken advantage of promptly by the gem
tlemen who. in these times Of difficulty, man.
ufacture evil reports. 1t may be said, how
ever. that by Monday morning q much
clearer view Of the situation will prevail,
and while the shock to the financial system
of ths world is severe, it will be seen that
all actual peril has been obviated."
THE GUARANTEE FUND.
LONDON, Nov. 15 The Bank of England
has subscribed e1 900. eco, three joint stock
banks have given ESQ, 900 each and two
others 100000 each to assist Barring
Bros. Several other houses have subscribed
smaller amounts. All the subscriptions
make total of g1O,0O0,oOO. This win con-
stitute guarantee fund for three years. 1t
is roughly estimated that the total liabili-
ties of the firm, including 100000 in
acceptances, amount to cal, ,O00, 900, while
their assets at the present prices are valued
at 924, 100000. TIE government has au-
thorized the Bank of England, il necessary,
to issue an additional e2,0G0, 900 in notes,
and will suspend the bank act IL requisite.
The original cause Of the FIRMS troubles
was Russia's withdrawal of several millions
of deposits on earnings, and of the firms
dealing in Argentine Republic aud Uru-
quay bonds. It is expected that incoming
investors will gradually relieve the strain
on the market.