The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-11-19
LATEST NEWS FROM EUROPE.
THE BANK OF ENGLAND MAY ISSUE
A sTkzEMENr OF IT'S AFFAIRS.

A ABATEMENT OF IT'S AFFAIRS.
n n1niion Pounds Is the Highest Estimate
or Its Losses-Or Course, the Bank Is
Ferfecty sound-Ths Coal Dispute Cost
Eagi..a Patty $3.50. 900 .oOo-Lord Rose
berry. with Great skiI. Guide. tho CUES.
tion TO Temporary Settlement, and Scores
Triumph for Els Pa-ty-Joe Chamber
iain Thinks That. Evea with Free Trade,
We Would Beat Engiand--cfispi Says
France L. Not Repusiic-Homo In Ire
iaad for the Duke and Duchess OF York.
LONDON. Nov. 1a-Strong pressure is being
brought to bear upon the Bank OF England to
induce the directors to issue q statement OF its
condition. in order to silence the alarming
rumors regarding the losses connected with
the retirement OF Chief Cashier May. Thatthe
institution. whose name was everywhere con-
adhered tho synonyme OF financial solidity.
should DO reduced to such q humiliating ne
COSTLY is Q sign OF the times Of somo signia-
cameo. 1t should DO said at once That the rea-
son for checking tho circulation Of false re-
ports 10 the danger. not to the bank itself. but
to general financial credit The bank is sound.
To hint otherwise would be to suggest Inn
pending chaos throughout tho financial world.
England has suffered. within four years. q
rapid series OF terrific disasters. Some Of these
were so unexpected that 1t is not surprising
that this weeks rumors about ono Of the
greatest Of all banking institutions received
credence among persons who should have
known better. 1t is true that the bank suf-
fered losses through Irregularities. It Is ad-
mitted also that these Irregularities consisted
In the substitution OF poor securities for good
ones among the banks collnterals. Nothing
10 yet known about the amount OF these los ses.
few people believe they will reach million
pounda which lis tho highest figure I have
heard mentioned. Such a sum is insigniH-
can't compared with the gross assets Of the
bank.
The facts already known. however. prove bad
management. 1t Is this which caused uneasi-
ness There are two parties among the banks
directors. 1t was expected there would be two
or three designations from the Board this
week. They did not take place. however. and
probably will not till the trouble blows over.
Although the bank. in some respects. 10
. most conservative institution. foreign bank
ers. especially. criticise other features OF tho
management severely. 1t is a mistake. by the
way. to regard tho Bank Of England as tho
strongest financial institution In the world.
Tho Bank OF France Is many millions richer.
It 10 said the question OF issuing q statement
was considered at a protracted meeting OF the
directors on Thursday. The Times yesterday
expressed the consensus Of banking opinion
when 1t said:
"We think still that the Bank of England
directors would do well to abandon for once.
their customary and justinable habit Of
reticence as to tho affairs OF the bank. and
make known how small. comparatively is tho
basis Of fact on which the reports that have
been current rest. We are confident that the
majority Of city men are OF our opinion. but
We admit the minority. who are disposed to
say. the least said. the soonest mended.' is q
respectable one. and that 1t has an arguable
case.
The chief argument used Is that to say any
thing now would form q precedent by which
the bank would be held bound on future occa-
sions when rumors that the bank has made
losses arise. This argument is falacious for
two reasons. First. We are not sure that the
precedent would be q bad one. Other institu-
lions do not find 1t So Second. the present
case Is q peculiar one. and would be no real
precedent for announcements regarding such
trivial matters some people seem to fear 1t
would be held to cover. No reasonable persons
would expect that the bank publish details
about some triae because it had once pub
lished details about n matter or importance"
The best guarantee that there Is no cause
for alarm is tho fact that the stock market is
fairly steady. 1t is true that the volume Of
business is 30 small that it amounts 10 practi-
cal paralysis. but such has been the situation
for weeks. 1t gives one a shock to hear OF ner- |
vous people hurryinG to London to ask their
solicitors and banking friends whether they
consider 1t really safe to leave funds in the
Dank OF England: but the scare will soon wear
of A director Of the bank. who refused to per-
NIT his name to be printed said to me to- day:
There has been no irregularity. In tho ordi-
nary sense OF the term. 1t is moro correct to |
de ha tba facta upOn which ha nnrfa |
basod as errors In judgment. The bank. OF
course. Is perfectly sound I don't know |
Whsther public statement will be issued"
It may be assumed that there will be radical |
revision OF the banks methods In some res-
poets Tho system. for instance which per-
mits the admission OF lot Of Alabama Iron
stock. which collapsed while among the banks
collateral is not strong enough for the stand
ard financial institution Of the world. There
will be difficulty in making the changes with
out an act Of Parliament and Interference OF
this sort is rather dreaded. Tho Governor OF
tho bank is represented as being in favor OF
drastic reforms in tho banks management.
There comes this week. by n grewsome CO.
incidence a reminder Of the greatest financial
In history. the liquidation growing
out OF Black Friday. which was finished on
twenty seven years after the crash
It Was the failure Of Overend. Quincy & Co.. on
May TO- 1866. that procipitated the universal
disaster. Next day six banks. having joint
liabilities Of SITS. 900. 900. went down. besides
unoounted smaller concerns. Ovsrend. Quincy
4 Co. owed s55,0o0.O00. and 1t is their affairs
that have Just been finally settled. The ulti-
mate loss to the stockholders was 15.OOO,-
600 depositors and other creditors being paid
in full This Is probably the longest lquida-
ton on record.
The news over which all England rejoices to-
day IL no less important than tidings OF peace
after an ex hausting civil war. The cost to the
country In treasure and suffering has been
greater than that OF any other struggle In her
history save actual war. The leading news
papers to-day estimate the money loss by tho
coal dispute at $50. 100000. These enormous
figures arc hardly adequate. There 10 no
means OF computing the tremendous losses by
reason OF the hundreds OF factories closed or
running on half time. In Sheffield. for in
stance. where there is no mining population.
OF the inhabitants arc idle on ac-