The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-08-05
N. Y. MONEY MARKET YESTERDAY.

From the ". Il. Herald.
"The directors of the Bank of England, at their
usual weekly meeting this afternoon, further
advanced the rate of discount, which is now six
per cent. This action OF q body of men who are
credited with ever faithfully discerning the
financial prospect, although generally antici-
pated in this country, has a Significance and
importance which point directly to the dread
that England is about to be involved in the war
of empires which seems to hang over the
destiny of all Europe. A few weeks since
cent. 1t was at first advanced but a
half per cent, as much through an ignorance
of the magnitude of the war then threatened as
through a desire to prevent a financial panic and
to bring the money rate gradually to a figure
which should protect the interests of the Bank
of England in the monetary to
ensue upon a state of hostllities. The latest
advance-the doubling of the original rate-and
the prospect OF a higher rate next week, which
would not in the least surprise Wall street, are
a tightening of the purse strings which denote
an apprehension that the great 'shopkeeper of
nations may be drawn into the war. To us in
this country 1t is significant that in London to-
day, despite this change in the discount rate,
our Five-twenties were firm and a shade higher
while English consols were weak and lower.
What Is the inference? That the time has
already passed when the first symptoms of war
and the rush to sell depressed our securities
below their intrinsic value, and that the reaction
has set in which is to assign them their real
place above every European national security
uChib III a VIC hOn0Oh obOCh GACutuScs IL
speculative holders have lost their bonds and
the capitalists and private investors now hold
them. Had this intelligence reached us at any
other season than the present, when Wall street
Is at the seaside and watering places, the dull
ness and inactivity of the hour would give place
to buoyancy, activity, and excitement.
'The money market showed a further relaxa-
ton, and the transactions on call at rates above
five per cent. were purely exceptional. The
prevailing rates on all classes of cOllaterals were
four and five per cent, the larger government
dealers having balances left with them at three
per cent.
Foreign exchange was lower, although nomi-
nally quoted 1091@ @109A for sixty days ster-
ling and l1015@ll0A for sight bills. The pres
eDt demands of the market seem to be fully
supplied by the bills drawn against the recent
loan of the Barring Brothers.
''Tbe Government market was strong. but
shared the general dulness OF the day. Prices
advanced on light transactions, and the under
tone of the market was decidedly firm. The
steadiness of our securities in the English mar
ket, the light offerings to-day at the Treasury
purchase, and the steadiness of gold, combined
TO occasion an advance of q quarter to
three-eigbths pei, cent. in the more active
issues. 1t should not be forgotten, how
ever, that the foreign bankers, who were
heavy purchasers at the recent low quota
tioDs, bought simply for a brief speculative turn
and not for investment Hence, if the present
prices should bring out sales of the bonds so
held it will not be at all surprising. Indeed, the
street may be prepared to see these reactions;
but If the kilograms concerning the London
market state the truth it is extremely doubtful
whether speculative sales at these prices will
prove at all profitable. The government offer
to purchase ELECTED proposals for the sale of
only 81, 793. 200 bonds.
1.-THE gold market opened on the street at 1872,
but declined to 1919 on the firm prices for our
bonds in London. AS soon as the advance In
the rate of discount was made known the price
recovered to 122, but again went off to 1914
when it was found that the higher rate for
money in London had not depressed American
securities. Furthermore, although the specie
shipment to-day was over a million and a half
dollars, it is doubtful whether the shipments for
the immediate future will be in proportion to
the amounts sent since the Inauguration of hos
tilities in Europe. The condition of the foreign
exchanges is against any other presumption"