The New York herald., 1873-11-08
Further Advance in the Bank of England
Rate and Its Lessons.
Improved Condition of the
City Banks.
THE UNION TRUST COMpANY'S SCHEDULE.
Dividend of the Pennsylvania
Railroad.

rate OF discount TO nine per cent Occurring after
action had been passed on the regular board day,
IL naturally excited grave fears and uneasiness re-
specting new developments In the London market,
which were not lessened when II was learned that
the rate for three months bills IN the open market
had followed the bank rate. This gives the oank
complete control OF the monetary situation IN Lon
don for the present The present advance Is an
unusual one, not having been reached since 1866
when the rate advanced to ten per cent upon
the failure OF overend, Gurney 4 co. On only
one other occasion has the bank rate reached
this high figure in 1857, the year OF panic so wen
remembered here. ON both these last mentioned
occasions the Bank act was suspended, Whlch ac-
ton permitted the bank to issue It's
PAPER WITHOUT LIMIT
as to its reserve. SHOULD the effect OF the present
advance be to produce any thing like panic i'll
London which seemed much apprehended yester-
day. there is no doubt the bank will follow the
precedent established and the Bank act be again
suspended, in which case the market would ind
immediate relief. While there is great cause for
anxiety the steady advance OF the rate OF money
in England, where conservative principles
rule so strongly, ii must be borne In
mind that ever since the establishment of
cable communication, which brought London and
New York Into almost hourly communication
there has been a steady movement towards
agreement between the two markets. 1t has been
less evident in respect 10 the money rate than in
any other department, although our market here
readily responded to any advance OF the Bank OF
England rate OF discount, however slight. Nine
per cent is certainly
HIGH FIGURE
in London, and indicates dangerous condition
but, when it is recolected how frequently has been
paid here as high as per cent 4 OF per cent, =,
Ill nj | cent
S65 per cent, 1928 per cent, 91. per
cent, ASS per cent and - 1916 per cent
per annum we need not be over-alarmed at the
modest figures OF the London market Yesterday
the rate ranged as high as 132 OF one per cent per
day, being IL 1882 per annum. These rates, OF
course were call, but upon approved collaterals
Mercantile paper Is reported dull, notwithstanding
slight improvement in the general situation
al nominal rates-that is, according to the special
agreement made between the buyer and the
seller. There was not much else Of particular or
fresh interest on the street during the day
rumor gained some circulation and credence FOR
time that two firms connected with
THE FOREIGN EXCHANGE BUSINESS
had faled not, however through any OF their deal
ings in exchange, but az the result OF outside
speculation. No names were given, hence ii was
impossible 10 direct inquiry al the fountaln-head;
but leading men connected with the foreign ex-
change market being interrogated professed their
disbelief in the report. Messrs. Kuhn. Loeb 4 CO.
stated it was extremely unlikely such an event
could occur without their knowledge, and they
mad heard nothing of it. They further stated that
no foreign exchange house OF any considerable
standing was engaged in speculation on the stock
Exchange. Exchange frmer throughout
the day in consequence OF the advance in the Bank
OF Engla nd rate-a measure directed against the
further shipment OF gold here, which also had its
effect III the gold market IN advancing the premium
Tnis recovery IN exchange viii help the forward
movement OF produce in making commercial bills
more sslable, and so react bene6claly. The
IMPROVED CONDITION OF THE BANKS
"A their frt her gain OF legal reserve also helped to
create a better feeling in commercial circles. The
banks are reported as now hodlng:-
Legal tenders. SIS 06 900
specie ioV"Wo
Total reserve s3soss 900
Against
Circula ion. 2,0O0
Total liabilities sl77o ocO
These figures, although not the Bank Exam
iners, are from an authentic source Deducting
the circulation from the liabilities, which may be
do ne. as that is amply secured by the deposit OF
government bonds at Washington, IL exhibits the
reserve as over 100000 in excess OF the amount
twenty-five per cent required by law, while
adding the circulation to the deposits as the law
provides for, 1t exhibits reserve OF twenty one
and hall per cent. These figures are much better
than was expected and Will go largely to aIlay the
fears entertained by the public concerning the
banks, and aid in securing that consummaton most
deyoutly TO be wished-a restored feeling OF con-
ddence.
THE PENNSYLVANIA RAILROAD COMPANY
directors held a meeting yesterday in Phlladel-
pha at which dividend oil five per cent ia scrlp,
bearing six per cent interest per annum and re-
deemaDle at the option oil the company at any time
before March, 1875, in cash, was declared. The
s70oOO,oCo, hence the dividend viii sum up
$1,000 000 which is to be paid on the 9th pro4mo,
according to the provisions OF the charter.
The scrip thus issued viii be received by the
company at par IN payment OF all instanents 1 due
holders ior further payments on that
score, 1t is presumed that large portion OF the
scrip dividend viii be absorbed by these means
Mr. David Solomon, fiscal and purchasing agent
OF the company III this city, states that ut - the
firm intention OF the Pennsylvania Railroad Com
pany 10 discharge every liability OF the road as
last possible, and as IL natures, and under no
circumstances VIII u issue any obligations other
than III the shape OF bonds''
few days ago IL was thought by the directors
Of the company that cash dividend could be de-
cared, and every effort was made by them TO effect
this purpose, but TO DO so would have increased
the boating debt rom 81, 100000 TO 5000 ooo.
The Pennsylvania Railroad Company is extend
ing its
FACILITIES TO ACCOMMODATES THE HEAVY GRAIN
TRADE
now occupying Its line. The worging capacity Of
the elevator at It's wharf, foot OF Washington
avenue, is being increased and, at present, large
number OF men are engaged In the rebuilding Of
the same. The increased capacity OF the elevator
has been found necessary owing TO the growing
demand for better accommodation In loading YES
sells with grain.
TWO new elevator legs for receiving the grain
from cars are now in course OF construction for
TINS purpose. Occasionally the steamers are
Loaded by means OF noatlng elevator, which trans
fers the gram from barges at the rate OF about
800 bushels an hour-a very small rate OF labor
The new galley, or conyeyor, on the Railroad
Wharf Is built OF iron.
THE TEXAS AND PACIFIC CONSTRUCTION COMPANY.
The same gentleman also gave II rs his author
iiy tnat none of the directors OF the PENNSYLVANIA
Railroad Company outside oil Colonel Thomas A.
Scott have had any interest In this concern. On
the day when his paper. issued on account OF tne
Construction Company went TO protest ION the ~ h
instl he at once rendered his resignation as Vice
President Of the Pennsylvania Railroad Company,
which, however has not yet been acted upon. IL