Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-05-10
ON THE VERGE OF PANIC.
VERY SERIOUS FINANCIAL TROUBLE
AHEAD In EUROPE

The Outcome Of the Rothsohild Loan-Paris
Banks Showing the White Feather
American Securities Looking Up-Rus-
sia's Policy as to Gold.
rBY CABLE TO THE DIsPATcH.1
LONDON, May 9.-The European markets
have had another touch Of panic owing to
the continuous drain of gold to Russia and
the quarrel between the Government of that
country and the Paris house of the Roths-
childs. It is thought the refusal of the
Rothschilds to promptly promote the new
loan was due to the policy of the Russian
Government in Withdrawing its deposits
and consequent affecting the foreign bourses
at the very time when it was most desirable
to keep the European money markets
easy. Twenty-Five million dollars In gold
has already arrived at st. Petersburg from
abroad and the Russian Government still
has on deposit in Europe over 500, 600. 900
more which it seems determined TO with
draw from its present resting place and
transfer to the vaults of the imperial Russian
treasury. leaving q small reserve in the
Bank of England. The impossibility of
getting gold in large amounts from France
or Germany has resulted in orders being
sent toNew York for the gold as fast as it was
required and even larger amounts must be
sent for to meet the Russian demands.
The decline caused BY the shifting of such
enormous sums has started rumors concern
ing the financial stability of important
firms in both Paris and London. On this
subject the agent of leading New York
brokers' house here, who has long experience
in Paris banking houses, said to-day: "In
view of the new Russian loan q great many
spectators both on the continent and here
had bought Russians In hopes of benefting
by the success of the operation. When it
was heard yesterday that the Rothschilds
withdrew their support, heavy sales
occurred in Russians, which. dropped
about per cent There Is no confidence in
Paris now, and even the name of the Roths-
childs and the prestige of Russia will not
bring money out OF the hoarders of gold in
France. Of course it is strange that the
TACT of the troubles in continental securities
should affect American stocks, but still there
has been a pretty good rise in Americans
lately, and I believe we will see far
better prices in America but the European
continental outlook is very bad and causes
great anxiety. All depends on the action
of the Russian Minister Of Finance. If he
seems to agree to the propriety Of putting of
the issue of their loan and does not act hasty
in the way of Withdrawing gold from the
continental cities and London everything
may straighten up again, but hardly think
so. The ill success of the Portuguese loan
is at the bottom of all Of 1t.
''The Paris banks have been helping each
other in the past for the selfish reason that
if one of them defaulted all of them would
suffer, but what frightens me is that after
going through their troubles during the
lasl two yesrs. with such flying colors, they
should to certain extent show the white
feather now. The big exports Of gold from
the United States evidently have bad
effect on the American market. Still, all
the American market il very
frm."
A statement in to-day's Journal Des De-
bats has tendency to improve the situa-
tion. That paper states that the Rothschild
contract with Russia is already signed, and
that the issue is therefore only delayed for
the opportune moment, the choice of which
rests with the syndicate. If this is true the
whole trouble is likely to blow over.