How a Crisis was Averted

Wanganui Chronicle, Volume XXXXVII, Issue 11713, 18 August 1902, Page 2

How a Crisis was Averted

Tiia death a few weeks ago of Mr. William Lidderdale, t/he Governor of the Bank of England! during the Baring crisis of 1890, has awakened reminiscences of those troublous times, and of the masterful way in--which Mr. Lidderdale carried out lxis poli/cy of proppingl up Baring Brothers so as to prevent panic. On Friday, November 7, the Bank rate was suddenly advanced to 6 per cent., and the Bank-came to borrow in -gcfkl £3,000,000 from the Bank of France and £1,900,000 from the Russian Treasury. Baring Brothers had intimated to the Bank, to the late Mr. Bertram Currie (of Glyn, Mills*, Currie, and Co.), the late Mr. Walter Bums (of J. S. Morgan and Co.), and to one or two more persons of weight that! their csup.ital was lacked up to such an extent that they required assistance. The crisis was of the most formidable dimensions, but the persona who devised the measures to meet it . were cUeair-siglited, prudent!, and bold, and tjiey knew^hat Mr. Lidderdale was a man Avho was not afraid of responsibility, and could be trusted to carry oub what they devised. It is said that one Bank manager, after agreeing to allow money on loan to brokers to remain out for some further time, issued a circular calling up the 'foans. This spelt widespread ruin. Mr. Lidderdale sent for the manager, and, taking out his waten, said: "It is now 2 o'clock. If by 2.30 you have not sent out "a circular recalling this notice, and in harmony with the agreement which the Banks arrived at, the account of your Bank with the Bank of England will be finally aaid irrevocably closed. If you consider that your Bank is' strong enough to survive a public notice to this effect, you will, of course, persist- wiffti your notice. If not, yon will send out the circular." Needlessto say. in less than the specified time copies off a circui'ai' of retraction were on their way to the offices of the Bank* clients on tha Stock Exchange. When the danger was over Mr. Lidderdale was rewarded with elevation to the rank of Privy Councillor, and with the freedom of the city. In ordfer to complete the troublesome business of arranging the affairs of Messrs. Baring, Mr. Lidderdale remained in office as Governor for a year longer than the two years for which Governors usually occirpy the chajr, which he finally left in Marcli, 1892. The son of a Russian merchant*, he was bom in St. Petersburg in 1832 1_ but his business training was acquired at Liverpool and New YorK.. Since 1864 lie had represented the Liverpool shipping firm of Rathbone Brothers, in London, and, besides being a director of the Bank, he Avas a onember of the Council of the Corporation of Foreign Bon'd.holdei«, chairman of the Londion Finance Committee of the Chicago Great Western Railway, and a director of the Mexican Railway Company.