New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-16

, existence prevented serious doubts of its COM
merciai honor. At the time Of the collapse Of the
copper syndicate there were vague hints that the
Barings had not escaped heavy losses, and the
subsequent troubles In South America increased
them, but until the official announcement yester-
day the losses were not generally supposed 70 be
sufficient to cause grave danger. The results OF
large ventures in African diamond heids, IN COP
per corners" and in South American lands and
railroads were known to be adverse, put tney wee
not imagined to be disastrous
The immediate cause Of the embarrassment 10
said authoritatively to be the recent depression
In Argentine securities, but the real causes were
undoubtedly excessive over-trading and the scar
city of money at every financial centre. The
| firm found itself possessed Of q vast amount OF
property Of various kinds, on which IL was unable
to secure further advances, burt OF comparatively
small amount of cash resources. The notice 10
the Bank Of England ten days ago was in har-
| mony with the honorable character OF the house,
| but the calamity that would have followed an
absolute failure, II the notice had been made pub
| Lie, cannot be measured
FORMATION OF THE GUARANTEE SYNDICATE.
| An examination of the affairs OF the firm showed
that the embar rassment was due to lack OF
funds and not to poverty Of assets, and The
with the success already Indicated. The Bank of
England led of with subscription Of f7,0O0,-
900, and, although only about f5,0Go000 more
was absolutely required nearly double that
amount had been offered yesterday. Among the
euarantors are the Rothschilds, J. =. Morgan
IL Co.. Morton, Rose & Co.. Glyn, Mills & Co.. ;
| C. ]. HambrO ard the Raphaels The danger
| had been avcrtcd before more than vague rumors
were permitted to reach Wall Street. Only one
or two houses, with important European connec-
tions, were made acquainted with the actual con-
dtion of affairs and, the success Of the guar
antee scheme depended on the profoundest Sc
crecy, they permitted no hints to escape from
them. Il is doubtful II the American representa-
tyes Of the am had any definite Er1.s MS.n s
| raising of the guarantee fund had Become Ger
tainty. OF course rumors about kidJel, fea.
body Co. were instantly sfar1ea gu, r 'nss yss she
agent Of the Darfngs, but otherwise the Dusinsss
! Of the two houses was not connected. IL was saiu
m sse n
several million dollars on call ana was Ill ''''
easiest possible condition.
EFFECT on THE STOCK EXCHANGE
The panic that occurred at the Stock Exchange
might have become serious II the real facts aoouc
the Barings and also their American asents n'o
not been known by few prominent HOUSES
The prices of stocks declined from the opening
amid great excitement Atchison was naturally
one of the principal centres of interest ana tr0m
20 it e to 2S l4 ,s Us,sT ner oeut to So, and all
/ the stocks that might be affected by the develop.
rnents fell proportfonately. The movement soon So u
became general hows.er as anu excited tc and almost
panicky." The recovery toward the cose s. "aS a.
still more rapid, and in the great maloiiIy ,os os
more than half nnd Of 3asbSs sns eHi closed
Changed. and Northern Pacific preferred; as wnaUn
was oonspicuousy strong throughSut the desns
ended with small advance; ss Inc tbat mSS' are not
deoit in abroad and could not be affected, except
sympashetcslly 6 the most distressing r9moss %,
fes e ssS SSeT Mees ppa per cent Central
| Missouri Pacific nearly g.. and Western Vmcn mon
per cent At one time about IL o. oc"SM bnn6s V and
the most confident buying was reported 20 ,iIs, I've
h1 hSo brokerage firm which has been heavily
short of stocks for more than year.
REACTION IN THE LAST HOUR
! turn in the speculation was made in the last
bour and the character of the buying was cnahgeo.
The reaction was helped by the puohcauoh u
the bank statements showing large gain IN sur.
Mus reserves and the sounding OF she gongs ien
upon excited but strong and nS n broer
| ofIices on both sides of the market, tnere Wa
SIGH Of relief because the business was connnsu iss
to two hours Once, certainly, the oatusasy ,i"'i
| Holiday law received general commentators
prsrrrs OF THE CLEARING HOUSES ACTION
There is a common opinion in Wall street .na'
since the action of the Clearing House Assoc'ao'o"
in authorizing an unlimited issue OF certinca,e''
the danger-line has been safely passed ~ ~.
yond question that one banker who urged the he
removal of limit had some lntlmau9n oi M r'. =.
London situation. But he accomplished nus purd pnd
pose without revealing his kn9wieaSge aS wss his n
formation about the seriousness OF tne ioIeism
crisis. The wisdom Of the action OF ons Cleanus
House Association has been proved. IL was IT,
that sha1 agS1daS morning the
largest largest banks should take out proPoruSnatc
amount of Clearing House certificates. Inc Sneoiy
| .yas simple The certificates that have aIeany
Scen Mss Issued issned have been taken by banks whose
| necessities overcame their scrupes. lhere seems
to be false pride which restraints otner "ahns I'm
from asking for help pneed bst Us n1' an for
an ",' issue of certificates might be regarded as
Confession of weakness. IL was sugges,eu' 'nsre
fore that some Of the strongest as weii aS souse
of the weakest banks should tsKe OUT slnuiC.he in
| ously few millions ef certticates no ac.lon ,a
of the kind was taken yesterday because ~ mss
not considered necessary BANK onicers nnSoI wmoo1
nostio, entitled them to know about the propos'
SSooiorad that the reports were without sibstan
tial basis They said that the SITUATION III : Ill's
city was not so serious as 10 SquireE E Cnio o"ntrv
which might be misunderstood Ill the couh"s'
A GENERAL ACQUIREMENI Noi ~ DE- "
The rumors of the day regarding the queston
Of a concerted movement for the acquifemehv ..
Clearing House certificates were set az res' % ,ao'
evening by denials from bank presidents VINO
, , I'D ,nSoubtedlv he acquainted with any sucn
inteution on the part of the banks prssaehSi seiS
Randoph. of the Continental National oank' sud- smd
tSat he had not heard Of the reported step, anu M
Prssdcnts Vermilye aud Simmons later denied ths
1t k said that no ne neecssS tSeSrv 10, advanced
n its excuse was Offset by the argument whi1h ,.a
could be adducoa in case no large Issue q ceT% Vsr
Gates was required. On this subject MI YER
milye said last night: A.. C,o.r;ra
There will be no meeting OF inc CieatinS .in
House to agree upon large issue ana OF tS
Sa S,aSestion from bank officers. We do not % want
the issue Of e hs;s cs0 ss ae in
.n.nS ~ condition. and a study Of the weekly
vim show that shtrf has oesa not hesfd Of
hP uit - the OK Animation of the Mechanics and
Traders Bank, but from what J have learned