Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1890-11-22

NEW YORK, Nov. 15.-Private cables
received before the opening of the
Stock Exchange, announcing the trou-
bles of Barring Bros. and stating that
the Bank of England, the Rothschilds
and other bankers had taken up ac-
counts of Barring Bros. amounting to
e1o, 100000, created profound sensa-
ton. Conferences of. brokers were at
once held, and it was decid-
ed to have brokers in every
stock that could be handled to
bid an advanced price at the opening
so as to avert a sudden shock. AS a
result prices for nearly all active stocks
opened } to 2 per cent. above last
nights close, the extreme gain being
made by Northern Pacific preferred.
kidder, Peabody & Co., who are the
agents here of Barring Bros. &, Co.,
London, say they have private advices
from London that whatever trouble
there may have been there, everything
is now completely arranged. "Our
house is in no wise affected" Thomas
Barring: who is now at the office of. Kid
der, Peabody & Co. states that he has
by .Kidder, Peabody & Co.
The facts in regard to the extraordi-
nary monetary situation which has pre-
vailed in London for the past ten days
may be summed. up authoritatively as
follows: Owing to the extent of their
operations in railroads and land and in
South America, the Messrs. Barring
have been more or less embarrassed for
over six months. 1t was not thought
that it was serious, owing to
the reputation of the firm in respect to
it's resources, and in respect to nearly a
century Of the most successful conduct
of the banking business upon high
and honorable basis, which had given
the house worldwide reputation equal
almost to that of the Bank of England
itself. .,
Last Thursday week the Messrs. Bar
cided that it was impossible for them to
continue. On Friday morning, the 7th
instant, they so notified the directors of
the Bank of England, who immediate
ly convened and, as will be recalled,
startled the whole financial world by
raising the rate. The proceeding
was almost unprecedented, and
called a halt in speculation at
every money. section in the
world. This present week has been one
of the most painful suspense in banking
circles, and this feeling: has been re-
fected in minor degree in New York
where only few of the more import
ant houses having European connec-
tons have been aware Of the real ma
ture of the difficulty in London.
The re port of the committee which
had to deal with the other private
banking houses as we'll as with that of
the Earrings, was made yesterday, and
orally anticipated, the Bank of England
and the private financial associations
which acted with it were ready to meet
the situation.
The strengthening of the resources of
the Bank of England has been carried
out successfully during the week, the
Bank of France having come to its as
sistance SO far as the supply of gold is
concerned, and a circular was Issued
this morning to all the institutions in
London concerned, in which it was
stated that 81 100000 sterling had been
supplied by the Bank of England and
e4,0OO,OOO sterling by the other mem
bers Of the relief party. H..
If persons interested would stop to
consider that the credit of the Bank of
England and the strongest financial in
situations in Great Britain has been
substituted for the impaired credits of
the great houses affected, it would be
seen that no patchwork remedy has
been thought adequate.
In taking charge of tn e as sets an
credit obligations of the Earrings, the
term of three wears has been reserved
in which to effect the necessary read
justment OF the affairs. What has been
done in New York in case remotely
parallel-that of the North Ameri-
can Company-has been done
in London in much grayer
emergency. That has been done
thoroughly, and the danger Of the sit
uation is past.
This feeling was not reflected in
our stock market, at least in the
early hours. There was dearth
of generally available news of a
trustworthy character, which was
taken advantage Of by the gentlemen
who in these times of difficulty manu-
facture evil reports. 1t may be said,
however, that by Monday morning a
prevail, and while the shock to, the
financial system of the world is severe
it will be seen that all actual peril has
been obviated.
In an interview Thomas Barring said
that it was true that the Bank of En-
gland, the Rothschilds and other big
English banking houses had agreed to
guarantee the credit of the Earrings
to the extent of. Ell 100000
sterling. In regard to the condition of
affairs in Wall Street Mr.. Seligman, of
the banking firm of Seligman & Co., said:
eve can't tell anything definite as yet,
but in regard to the Ell 900, 900 loan to
the Earrings, | presume that if with