River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1890-11-20
SAVED FROM DISASTER.

SAVED FROM DISASTER.
Argentine Republic Investments Imperil
the Great English Banking House of
barring Bros. & Con- the Verge OF
Ruin They Are Rescued by the Bank of
England and Others-Lisbi tiles OF &55.-
100000.
LONDON, Nov. 1.-THE Times, refer
ring to the financial situation, says:
The city has passed through crisis
verging on a panic. Such time has
not been known since the suspension of
Overend, Quincy & Co. We rejoice that
we are able to announce that the worst is
over. The Bank of England has added
to its historic services TO the state and
the commercial committee by It's prompt
action in averting what would have been
q lamentable catastrophe. The admin
istration of the bank not only provided
vast re-enforcements toits stock of gold
to meet exceptional demands in the
event of a panic, but also stepped out OF
the ordinary routine of business to pre-
vent the downfall of the greatest and
most respected of English financial
houses, which had for some days been
in peril, and which. if it had fallen,
would probably have brought down in
widespread ruin a large number of
smaller hut important firms.
The great financial house referred to
is that of Barring Bros. & Co. They
have been helped through by the Bank
of England, the Rothschilds and sew
eral London joint stock banks, who
made large advances to the firm. The
Barring Bros. position is now believed
to BE secure.
The Bank of England has subscribed
81, coo, 900, three joint banks have given
1850 each, and two others $780,
900 each to assist Barring Bros.
Several other houses have SUBJ
scribed smaller amounts, all the
subscriptions making a total of
e10, 1000, 900. This will constitute guar
antee fund for three years. 1t is
roughly estimated that the total liabili-
ties of the firm, including SIG, 600, 900 in
acceptances, amount to e2i, 1000, 600,
while the assets, at present prices, are
valued at e24, 600 600. The Government
has authorized the Bank of
England, if necessary, to is
sue an additional e., O00 900 in notes,
and will suspend the bank act if
requisite. The original cause of the
firms trouble was Russia's withdrawal
of several millions of deposits on learn
of the firms dealings in Argentine and
Uruguay bonds. 1t is expected that in
coming investors will gradually relieve
the strain in the market.
CAUSED BY THE REVOLUTION.
NEW YORK. Nov. 1.-THE Evening
Post of Saturday in its financial ar
ticle, says: about three months ago,
when the Argentine revolution first
began to seriously cripple the financial
houses which were floating the
various Argentine securities and
enterprises, an examination of the
assets and liabilities of Messls.
Barring Bros. showed valuation of as
sets which left clear balance of e15,-
600, 900 over and above all liabilities.
The shrinkage of about Sl1, 900, 900, or
say SIS, 000 600. in the three months,
shows what tremendous strain Lon
don fnanciers have been subjected
to. AS for the prospect of a
resuscitation of the value of
these Argentine securities. it is
good. The South American countries
where such great enterprises have been
undertaken by English capital have
natural resources of such enormous
value that in few years they will GER
tainly pay, and with the resuscitation
of these will also come the restoration
curities."
[Baring Bros & Co are one of the Oldest and
most respected banking houses in the world.
The present firm was founded in the first quar-
ter OF the present century. John Barring,
the ancestor of AL the English
Barings, came from bremen and set
tied in Exeter, Eng. early in the
eighteenth century. His son was Sir Francis
Barring, London merchant, who became di-
rector in the East India Company and amassed
very large fortune for those days. Owing to
his influence William Pitt renewed the charter
of the East India Company in 1897. Two of SIS
Francis Baring's sons married sisters, daugh-
tiers of Senator Bingham, of Pennsylvania.
This was about the year 1890. Their descend
ants are now the chief partners OF Barring Bros.
& Co., and besides hold four peerages in the
English House of Lords. The Earl of North
brook. Lord Wolverton, Lord Ravelstoke and
Lord Ashburton are members OF the famous
Barring family. OF these peers only Lord
Ravestoke is now a member of the banking
house. The other partners are James Stewart
Hodgson, Henry Bingham Mildmay, Charles
Lloyd Norman, Thomas Charles Barring, Honor
ables Francis Henry Barring, Robert Kirk
man Hodgson, Thomas Barring and
William Barring Hulhed.
Barring Bros have been one of the great bank
ing houses which have lent money to the Egyp-
tian Government With the failure of Egypt to
pay the interest on the loans the troubles OF
the Earrings began. Instead OF retrenching the
house plunged deeper and deeper into foreign
loans and investment. About five years ago
Barring Brothers became financial agents in
Europe for the Argentine Republic. When this
step was taken several London newspapers
warned them of the gravity OF the I'M
dertaxing and expressed the belief that
Barring Brothers had lost reputation in
recent years through similar risky ventures.
But Barring Bros. have also played very
important part in the American market
through their New York agents, Kidder,
Peabody & Co. The greater part of the
large Atchison, Topeka Santa Fe
railroad belongs to them, or is controlled
by them. When this road failed to pay it's
fixed charges more than two years ago II had to
be reorganized This was brilliantly and sue
cessfully done through the agency Ct
Kidder, Peabody & Co, but the
change must have resulted in a large
financial loss to the Earrings. Barring
Bros have lately been interested in promoting
Industrial companies, such as breweries and
stock yards, in this country in order TO launch
the stock on the English market.
In 1905 when the credit of this country was
sorely tried by the exclusion policy of France
and England in Europe. the Barring family
proved themselves true friends of the young
Republic Substantial financial aid was given
by them to the United States at time when
that help was badly needed
-O. DtEn ~DHr