GREAT PANIC ON THE EXCHANGE.

Press, Volume XLVIL, Issue 7711, 17 November 1890, Page 5

GREAT PANIC ON THE EXCHANGE.

■. ■' - iii' «a* * -■ ■ A LARGE BANKING HOUSE IN DIFFICULTIES. A HUGE CALAMITY AVERTED. (MB VBKSS asaoczAXxoir.l Received November 15th, 11X35 aaru London, November .14, The Bank of France has advanced three millions at three per cent if the settlement is favorable. Advices from New York report that mattera are quieter. Beoaived November 15th. 8 p.m» London, November 14. Yesterday a million pounds worth of consols were sold. To-day the market is again agitated and there are renewed rumors of a huge disaster of one of the largest banking houses in London. Received November 6th, 6 pan. London, November 15. Yesterday the severest tension was experienced on the money market since Black Friday (11th May, 1886), when the height of the commercial panic in London was reached. A leading financier's house became involved through heavy purchases in Argentine stocks, and was compelled to ask the assistance of the Bank of England. The Bank promptly complied with the request, and a Guarantee Committee, composed of several leading financiers, was formed. The difficulty was thus overcome, and an unparalleled financial calamity averted. The liabilities of the firm in difficulties are set down at £14,000,000, but the assets show a surplus of £4,000,000 over this. Tbe guarantee which the Committee of leading financiers gave was for £9,000,000. During the panio South American securities completely collapsed, and consols and everything else fell heavily. The Times, commenting on the situation, says that the Bank of England added historic services to the name it has always borne for prudent policy by stepping out of its routine course to prevent the downfall ol one of the oldest and most respected English financial houses. Consols were at the lowest rate known since their issue, but the prices are now showing signs of recovering. Buenos Atbbs, November 15. The Government of the Argentine Republic has released Messrs Baring Bros., of London, from their engagements to provide the sum of £6,000,000 for the construction of the Buenos Ayres waterworks.