The Superior times. [volume] (Superior, Wis.) 1870-1912, 1890-11-22
AVERTED A PANIC.
Great London Banking Firm on the
Verge of Ruin-lsaring Bros Narrow
Escape-Rescued by the Millions OF
the Bank of England and OF the
Rothschilds-Mucil Excitement Caused
the New York Market.


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
sl5,GOo,Gt0. 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 sudden shock. AS
result prices for nearly all active stocks
opened J to ? 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 4 Co,
London, say they have private adviccs
from London that whatever 1rolbIe
there may have been there everything
is now completely arranged. Our
house in no wise affected" Thomas
Barring. who is now at the office of Kid
der, Peabody 4 Go. states that he has
nothing to add to the above statement
by kidder, Peabody < Co.
The facts In regard to the extraordi-
nary monetary situation which has pre-
vailed in London for the ast ten days
may be summed up authoritatiyelv as
follows: Owing to the extent of their
operations III railroads and land and in
South America, the Messrs Barring
have been more or less embarras, ed for
over siX months. 1t was not thought
that It was serious, owing to
the reputation Of the firm in respect to
its resources, and in respect 10 nearly
century Of the most successful conduct
OF the banking business npon a high
and honorable basis, which had given
the house aworia wide reputation equal
almost 10 that Of the Bank of England
itself.
Last Thursday week the McsSrs. Bar
ing, at the conclusion of business, de
.cldcd that IL was Impossible for them To
continue. On Friday morning, the eth
instant. they so notified the directors of
the Bank If England, ho Immediate
iy convened and. rs viii lie recalled,
startled the whole financial world by
raising the rate. The proceeding
was almost unprecedented, and
called halt III speculation at
every money section In the
world. This present week has been one
of the most painful suspense i'll banking
circles, and this feeling has been re-
ilected IN a minor degree in New York
where only a few of tie more import
ant houses having European conncc-
tons have been aware ot the real ma
ture of the difficulty in Iondnn.
he report or IHe comElIIIee WlnCn
had to deal with the other private
banking houses as we'll as with that of
the Earrings, was made ycstc rdav, and
as the outcome has been pretty gem
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 ls
concerned, ald circular was issued
this morning to all the institutions IN
London concerned, in which IT was
stated that G. ,0Ou.0G0 sterling had been
supplied by the Bank of England and
"a 600, GOO sterling by the other mem
bers ofthe relief party.
If persons interested would stop to
consider that the credit of the Bank of
England and the strongest financial in
stitutions 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 Barings, the
term of three wears has been reserved
in which to effect the necessary read
lustment OF the affairs. What has been
done in New York in case remotely
paraliel-that of the North Amerl-
can Company-has been done
in London IN much graNcr
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
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
much clearer view of the situation Will
prevail and while the shock to the
financial system of the world is severe
it will be seen that all actual peril has
been ohyiated.
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 Barngs
to the extent of sll 100000
sterling. In regard to the condition Of
affairs in Wall Street Mr.. Seligman. OF
the banking firm of Seligman x Co., SAID:
I'VE can't tell anything definite as yet,
but in regard to the tll 600, 900 loan TO
the Barings. | presume that If with
in a reasonable time the market takes
favorable turn, they will take
I'D the collateral and 90 on as
al wavs. No one can say that this is the
beginning of the end o the Barings, for
the simple reason that no one knows
anything about it.
Mr. Stickman, of the Bank Of British
North America. said: Il am "a anxious
as anvone to know something definite.
but really don't know thing with any
degree of certainty until affairs have
settled down somewhat.
The later advlces showed that the
syndicate which had come to the reiiet
OF the BaringS was composed "a follows:
Bank Of England. s7.@o000: Messrs.
Glyn, Mills 4 Co., the Rothschilds, !. :.
Morgan & Co, {. j. Hambre, Morton,
Rose & Co., anu the kaFhaels, "A ,eD,-
OUU collectively.
The weekly bank stateme Ut shows the
following changes:
Reserve lncrea>e.-s-.- 4! ! so9
Leans, decrease. 800 81
Specie decrease i4l. l.20g
esal tenders increase ..,-....,-...,-- $500
Deposits. decrease. .----. -....-.. .- 5'l7e .htf
Circulation 600
The banks now hold s,.it22. so less
than the requirements ci the - pei
cent. rule.