The Taranaki Herald. PUBLISHED DAILY TUESDAY, SEPTEMBER 18, 1888.

Taranaki Herald, Volume XXXVII, Issue 8271, 18 September 1888, Page 2

The Taranaki Herald. PUB LIS HED DAILY TUESDAY, SEPTEMBER 18, 1888.

Amongst our cable messages a short time since was a startling one to the effect that eighteen banks had failed in the Argentine States, and that a commercial panio had arisen. This was afterwards contradicted by the British Consul at Buenos Ayres ; but since then nothing has boen heard a< to ths cause of the report. From papers to hand from that park of the world we learn that on June 28th last there was great excitement "in the ring at the second hour of the day whioh boffhs description, and," says the Buenoi Ayres Standard of that date, " there can be little doubt that as matters at present stand there is a very serious crisis staring the speculative market in the face. The bears suffered a most terrible raking from which they had to retiie routed and disheartened, and compared with which the May disaster is the merest flea-bite. Gold advanced in bonndi, point after point being raited without stoppage or delay, and in less time than it takes to relate it, the premium advanced from 150*20, the opening price to 154, at which price the capitalists put in their appearance and for a time <>toppod the panio." " Bnt pregnant with fatal consequences," the paper goes on to say, " as the gold market looks after this terrible, though not unexpected flare up, it will take the hardient manhood and most lengthened experience in the ring to grasp the Banco Constructor market. At the second hour, long before tbo boll rang, the shares were left iv a fainting condition at 160, not a single buyer presenting himself at that price." Thiu fall in the Banoo Constructors from 240 to 160 represents a difference of over twelve million dollars, or £2,400,000, in the speculative realms of fancy. The shares of several other Companies fell in the same proportion, and the brokers who were unable to meet their losses were very numerous ; for by Juno 30th eighteen brokers had failed, some taking flight, not caring to face tbe difficulty. The papers state that one of the principal speculator in Banco Constructor shares was offered £200,000 for his real estate properties to enable him to cover his difficulties. . The latest news from Buenos Ayres is to the effect that the " situation all round looks bleak and depressed, and sound itooks are suffering from the contagion, there being no buyers."

The cause of this crisis is very instructive, and what happened tit Buenos Ayres a short time since it is more than probable will happen in Melbourne after the Exhibition closes. The Standard, published at Buenos Ayres, referring to this crisis says ;—"; — " Ia five «horl years the country has sprung from poverty into relative wealth. It has been calculated that, whereas public wealth increases at the rata of £5 in Great Britain and France, £6 in the United States, and £9 in Australia per head per annum, here, in the Argentine Republic, we have been rushing on, of late years, at the rate of £41. In this city we have recently seen hundreds of fortunes spring up as if by enchantment : the result of the extraordinary rise in the value of real estate and shares. Such rapidly &nd easily acquired riches are now telling their tale in the extravagant and gambling propensities of the people, who, from the more or less respectable leadingstrings of poverty have soared into all the corruption and relaxation of wealth acquired without work or worry. Of all the stocks in the .marker^ none can boast the speculative attractiveness of Banco Constructor. Here we have a stock of hay 20 millions nominally, supposed to be invested ia cheap lands in and around this city. A sudden rise in property allows a 100 per cent, dividend, &nd up goes the balloon. Last month .the stock was as high as 260, that fe to lay the 20 millions nominal capital was worth 52 millions ; On the sth July the shares.dropped to 100 — say a shave of no less than thirty millions. These figures are necessarily quite nominal and speculative, as puch a stupendous difference would swamp the market and smash all the dealers, but it may be eafoly estimated that the differences in Banco Constructors on Thursday, July 5, amounted to nearly five millions, and people are wondering whence all that money will come, and the liquidator is patiently waiting to see it put in an appearance. Hundreds have burnt their finders. The victims may be found in all walks of life, and some of the principal losers figure in the land : instead of proving hawks, they have proved to be pigeons in the speculative struggle for life. The lesson is a severe one, but it will bear fruit, and it bas already opened the eyes of mmy to the danger of the situation." This appears to be much the same sort of speculation as is being indulged in at Melbourno, and it is therefore not difficult to foresee the result which is sure to follow when the crisis takes place.