Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-11-16
A Report That the Earrings Were Grip.
pied Excites Wall Street.

A Report That the Earrings Were Grip
pied Excites Wall Street.
New YORK, November 15th.-Private
cables received before the opening OF the
Stock Exchange announcing the troubles
of the Barring Brothers, stating, that the
Bank of England, the Rothschilds and
others had taken up the accounts of the
Barring Brothers amounting to els, 0OO 900,
created profound sensation.
A conference of brokers was at once
held, 1t was decided to have the brokers
in every stock that could be handled bid
an advanced price at the opening, to avert
a Sudden shock. As a result the prices for
nearly all active stocks opened above lest
nights close.
In an interview this afternoon Thomas
Barring said it was true that the bank en-
gagged the Rothschilds, and other large
English banking houses had agreed to
guarantee the credit of the Earrings to the
extent Of Ell 100000.
Banker Seligman, speaking of the condi-
ton of affairs in Wall street, said he pre-
sumed that if within reasonable time the
market takes a favorable turn here and
abroad, the Earrings will take up their col
lateral and go on as always. No one can
say that this is the beginning of the end OF
the Earrings, for the simple reason that no
one knows anything about it.
The Morning Post says that three months
ago, when the Argentine revolution first
began to cripple the resources of houses
floating Argentine securities, an examina-
ton of the affairs of the Earrings showed q
clear balance of 915.000 900 over and above
all the liabilities. A shrinkage of 911,-
600, 600, or say about $50, 100000 in three
he oh hot troy n nt1o CIV IN
London finances have been subjected to-
The prospect of the resuscitation of the
va'ue of these Argentine securities is good
1t is reported that a meeting of bank
Presidents OF New York is to be held be.
tween now and Monday morning to con-
slider the financial situation, and determine
upon policy of conservatism if events
should justify or necessitate joint inter
position in that direction.
THE WORST IS OVER.
LONDON, November 15th.-The Times, re.
ferring to the financial situation, says
The city passed through crisis verging
upon a panic. The worst is over. The
Bank of England, by prompt action, has
averted a lamentable catastrophe by pro-
viding vast reinforcements to its stock OF
gold to meet the exceptional demands. II
also prevented the downfall of one of the
greatest and most respected English fnan-
cial houses, which, if it had fallen. would
have brought down in widespread ruin a
large number of smaller but important
firms.
The banking house referred to by the
Times was Barring Bros. & Co. They had
been helped through by the Bank of Eng
land, Rothschilds and several London Joint
stock banks, who made large advances to
the firm. Barring Bros position is now
believed to be secure.
CAUSE OF THE TROUBLE.
LONDON, November 15th.-The total
liabilities of the Earrings amount to f21,-
100000, while the assets at present prices
are valued at f24, 100000. The Government
has authorized the Bank of England, il
necessary, to issue an additional e., 100000
in notes, and will suspend the Bank Act if
necessary. The original cause of the firms
trouble was Russia's withdrawal of several
millions deposits on learning of the firm
dealings in Argentine and Uruguay bonds.
1t is expected that the coming investors
will gradually relieve the strain in the
market.
AN IMPROVEMENT LOOKED FOR.
NEW YORK, November 15th.-In an in
terview with Tribune reporter to-day, Jay
Gould expressed the opinion that the furry
in stocks was about over, and he looked
for a steady Improvement soon. He knew
little about the Barring troubles, but did
not think they were seriously affected.