Financial Panic

Feilding Star, Volume XII, Issue 65, 18 November 1890, Page 2

Financial Panic

] PER DOTTED PRESS ASSOCIATION, f London, Novem ber 14. Yesterday £1,000,000 worth of Consols were sold. To-day the market is again agitated, and there are renewed rumours of a bugo disaster of one of the largest banking: houses in London. Noyeimper 15. A leading financiers' s house became involved through heavy purchases in Argentine stocks, and was compelled to ask the assistance of the bank of England. The liabilities of the firm in difti* calties are set down at /£14,006,000, but the asserts show a surplus of £4,000,000 over this. During tbe panic South American ■ecurities completely collapsed, and Consols and everything fell heavily. Consols were at the lowest rate known since their issue, but prices are now showing signs of recovery. November 17. The Standard is the only paper which mentions Baring's firm by name. There? was considerable commotion on American and Continental Exchanges upon receipt of the news of the Barings difficulty, which was caused by Russian withdrawals. The Bank of England borrowed four or five millions in France, Russia, and Brazil to enable it to meet the crisis. The British is prepared to advance two millions, and to permit the suspension of the Bank Act ; but these precautions will probably : be 1 needless* and it is not thought likely there will bo any further trouble. Baring Brothers* is the financial, housewhich is in difficulties. Their liabilities are put at L21,000,<)00, but the estate shows a surplus of L3.000,000l "'-"■"' ' The. Bank of England, the'fiothchilds, and other leading houses guarantee Ll0,» 000,000. The Government is supporting the Bank to the extent' of L2,600,0iXX The liquidation of the, estate will extend over three rears. " ' '"^ The prompt action of the Bank has reassured the market, and stocks are recovering. ...,..., Buenos Ayrbs, November 16. The Government of the. .Argentine Republic has released /Messrs, ' B^aringißros., of London from their engagements to> provide the sum of £6,000^ for the construction ofthe Buenos Ayres Waterworks. '-■ ■"■''"■ 'i - Paris, November. 16. A French loan of ,700;000,bdo' franca (L 28,000,000) will bo placed soihs market in January. It was in expeotaiion of this that the Bank of France assisted tho Bank of England, in ordeVto prevent thepanic extending to Paris. ... , ■