Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-11-30
DARK FOR ENGLAND.
The Financial Situation There Is Far
From Being Pleasant.
NO ONE HAS MONEY TO SPEND
Now That the American Tourists Have Re-
turned to Their Homes.
MORE TROUBLE EXPECTED AT ANY TIME
MORE TROUBLE EXPECTED AT ANY TIME

LONDON, Nov. 29.-The Herald's CORES.
pondent cables as follows: 1t cannot be
denied that business is in very bad state
here, and there is no prospect of its getting
better. Imports and exports alike are fall
ing off, The great staple industries of the
country are suffering severely and enter
prise seems to be dead. Even the book
publishing season is uncommonly dull for
the time of year. Nobody has any money
to spend now that Americans have gone
home
Consols are only trife above 95, and all
of Mr.. Goschen's devices cannot push them
higher Lord Salisbury end the President
of the Board of Trade have plainly warned
the nation during the past week that the
commercial future is to be regarded with
much anxiety.
Reasons for the Dizziness.
No wonder then the people fly from the
Stock Exchange and that no more new conf
panies are being brought out What is the
reason of all this? First, the adverse in
fuence of hostile tariffs, which gradually
are drawing an iron line round English
industries and preventing their develop
ment. Next the Barring collapse, which
undermined half the city and left the
other half afraid to call its soul
its own. But there is always the Bank Of
England in the background. So there is,
and it is a pity it was ever induced to come
into the foreground. Most people now see
and admit that it would have been far bet
ter to have let the Barings go than for the
Bank of England to have departed from its
old traditions and its safe line of business
for the purpose of propping up private
firm, which had been guilty of the greatest
imprudence and folly.
is the reply I sometimes hear, ''but how
could the Bank of England, as Govern
ment institution, refuse to help the Barings
when the Barings had helped it? How was
that ?'' In this way: When Mr.. Goschen
brought forward his scheme for the con-
version of the national debt it was neces
sary to get tie support of the great bank
ers and brokers or it could never have been
carried through A previous Chancellor Of
the Exehequer had failed to square" the
city. Mr.. Goschen did it only by giving
commission to the bankers, and they in
turn did everything in their power to force
customers to exchange old consols for new.
Otherwise the Government must have re-
deemed them at par.
The First Blow to the Earrings.
1t was necessary to keep up the price
about par and this was done by the bankers
holding we'll together. The Barings were
in this. They bought immense
blocks of consols and held them until the
first heavy blow fell upon them This was
the notice of the Russian Government
of its intentions of the withdrawal
of cash balances from their custody.
Then the Barings were obliged to sell the
consols to the tune of nearly GS 600. 600.
and of course prices fell ConsoIs never
recovered, neither have the Barings, and
now South American stocks are at skies
and the Bank of England must make good
its guarantee to the Barings. Of course it
can do that, but its prestige is badly in
iured.
AT this moment another great drain is
being quietly and insidiously prepared.
The movement has begun in Russia, but
will not stop there. According to my in
formation the United States will shortly
take hand in it, and then we shall see
some curious things At present the stock
of bullion i'll the Bank of England cellars is
below what it was last year and likely to
remain so. The withdrawal of any large
sums now must cause sensation in the
city. Amid all this uncertainty American
railroads of the better class alone remain
mistaken. The market has taken the course |
foretold weeks ago. All foreign securities !
Ire neglected, and if Englishmen continue |
% hold their consols it is because they can |
lot get out of them or there should be a |
much larger rush for American investments |
han we see even now.