THE MONEY PANIC.

Star (Christchurch), Issue 7013, 18 November 1890, Page 4

THE MONEY PANIC.

BAKING BROTHERS. THE EXTRAORDINARY MEASURES ADOPTED. [Special to Press Association.] LONDON, Nov. 17. Baring Bros, is the financial house •which is in difficulties. Their liabilities are put at twenty-one millions, but the estate shows a surplus of three millions. Tbe Bank of England, the Rothschilds and other leading houses guarantee ten millions. The Government is supporting the Bank to the extent of two millions. The liquidation of tho estate will extend over three years. The prompt action of the Bank has reassured the market, and stocks are recovering. The Standard is the only paper which mentions Barings' firm by name. There was considerable commotion on the 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 iv France, Russia and Brazil to enable it to meet the crisis. The British Government is prepared to advance two millions, and to permit the suspension of the Bank Act ; but these precautions will probably be needless, and it is not thought likely that there will be any further trouble. PABIS Kov. 16. A French loan of seven hundred million francs («£29,0C0,000) 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.