NEWS OF THE WEEK.
THE long-expected panic on the French Bourse arrived on Thursday. The whole people have been speculating for the rise, and have forced up the prices of all Stocks, except Rentes, far beyond their legitimate value. That is to say, the people expect, judging by the price of Rentes, four per cent. as steady dividend, and they drove up speculative stocks till they could not yield two, hoping only to sell at a profit. No one would sell, and huge sums were borrowed at frantic interest- 20, and even 30 per cent.—to hold on for a few weeks. The lenders of this money became exhausted, grew frightened, and called it in, the borrowers were compelled to sell, and panic set in. The shares of the Bank of France dropped £15. The £5 shares in the Union G4nerale—the great Catholic Bank, the centre of so many companies—which had risen to £120, slowly dropped to £96, and then sank suddenly to £52, a loss which may be counted by millions, and drags down the shares of at least six other companies. All other shares, such as those of the Suez Canal, suffered in pro- portion, and even Rentes fell 14, till the scene resembled the Black Friday of 1866. It is said that wild orders to sell are still pouring in, that at Lyons the speculators cannot meet their engagements—a most unusual occurrence in France—and that the worst may not be realised for another day or two. That may be a pessimist view, as the French brokers have immense resources, and "willmake any sacrifices ; but the reflex effect of the panic on other Exchanges has yet to be felt, and there can be no doubt that speculation has been of the maddest character.
