MONETARY PANIC.

Waikato Times, Volume XXXV, Issue 2863, 18 November 1890, Page 2

MONETARY PANIC.

COLLAPSE OF SOUTH AMERICAN SECURITIES. HEAVY PALL IN CONSOLS. (BY ELECTRIC TEMORAPU.—COPYRIGHT.) London. November 14. Yestehday a million pounds' worth of consols wero sold. To-day the the market is agaia agitated, and there arc rouewed rumours of huge disaster to one of the largest banking houses in London. The Bunk of England returns published to-day show the total reserve in notes and bullion to be £11,104,000. The proportion of reserve to liabilities is 32-24. November 15. Yesterday the severest tension was experienced on the money market since '■' Black Friday" (I lth of May, 1866). When the height of the panic in London was reashed a loading financial house beoanie involved through heavy purchases in Argeni tine stocks, and was compelled to ask the assistance of the Bank of Eng« land. The Bank promptly complied with the request, and a guarantee cAnmitteo, composed of several leading financiers, was formed. The difficulty was thusovercomo, and an unparalleled financial calamity averted. The lia« bilities of the firm in difficulties are set down at £14,000,000, but the assets show a surplus of £4,000,000 over this. The guarantee which the committee of leading financiers gave was for £9.000,000. During the panic, South American securities completely collapsed, and consols and everything else fell heavily. The Times, commenting on the situation, 6ays that the Bank of England has added historic services to the name it has always borne for prudent policy, by stepping out of its routine course to prevent the downfall of one of the oldest and most, respected English financial house?. Consols were ai the lowest rate known since their issue, but prices are now showing signs of recovery. November 16. Consols are now at 93J. Paris, November 16. A French loan of seven hundred million francs (£28,000.000) will be placed on the market in January. It was in expectation of this that the Bank of France assisted the Bank of England in order to prevent the panic extending to Paris.