, 1873-06-07

MONETARY,

rotail tra1o, aud Il Ia not at nl improbable that
4he amount Of money expended hore by tho visi-
tors from tho surrounding country, In hotel bills,
shopping, etc., during tho last two days, viii
amount to $500, 900 over tho usual average Of
such disbursements on ordinary days.
Money grows moro oasy both hero anA In New
York. In tho 1attor city It IL abundant at 4 to
por cent, thu amount Of funds thore heinH doubt.
less inoreascd by tho disposition OF Western
banks to send money thoro for tho sake Of tho 4
per cont interoat allowed On current ba1anceu
Btorllng exchange has adSanced again to near
y ,tt tho apo9,c @ shipping point. At HOY for sight
don Tony sght bs were " auoteS pntsS IL Nn NaT
York as high as 1905, and gold advanced in pro-
portion TO tho Increasing prospect Of tho outflow
of specie to Europe.
TIE riNkNc1A1 SITUATION IN EUROPE,
For noarly year pnat It has boon protty vol
understood that 1argo part OF tho payments By
Franco to Germany on tho war indemnity, had
boen nado In bills oil London, and that, though
money, II had thy poworto TO dose, and By 20 doing
largely dcpleto tho stock OF gold In the Bank Of
England. Tho foar Of thia Drain has kops tlo
Directors Of tho Bank Of England unusually
May. G250,0oo Ii ppooio was ~ withdrawn
from the bank OF England for tho Uontinont,
1mmoaiasely, tho Directors Of tho bank resorted
70 their usual e1pedient for tecupera.!ns tho
ot discount from 8 per cont to per cent. This,
however, did not scom to hayo tho usual effcot
Of drawing gold from the United atAtca, and tho
stock OF gold In tho bank did not increase.
moro on the indemnity to Germany. 1T hrss
it WAS thought that tho Bank Of Franco would
pay this Sum IN speoo out Of it's own vaults, "a
1t has boon steadily aooumulating spooio for
10 1So psymont T Of this nstanent d The n
demnity. But now It bogius to be thought, In
London, that tho Bank OF France has beon COL
lecting this hoard Of specie for the purpote OF
the indemnity will bs drawn from London.
Tho sudden advance In tho rato OF discount to
7 per cent by tho Bank Of England, on last Tues-
that the four Of o drain Of, speoio from England
to Germany has increased. In addition to this
comeg also tho intelligence that the British Gov
ornmont has decided to authorize an increase Of
e nsnh in Of Tue RasRsa RSRsr circulation Il. =,
Bank act has stood since 1914, tho
bank had auttjrity to issue up to Ell. 100000 Of
its notes without any increase In specie resosvo,
but any increase Of notes over that amount
could Only DO mado upon tho deposit ID the bank
ot an eaual amount Of bullion. Il has bcen tho
ende:vor OF tho Directors OF tho bank to COM
p!; with thia requirement Of tho law that haa
obliged them to edyance their rato Of discount
at timeB, when tho supply Of money in London,
OF It's rate Of discount BY tho bank did not
afoot tho general money market, and
has therefore failcd to draw specie into tho bank
o. It used to whom tho bank was greater none.
Same ti,no thoro Is demand In tho increasing
domestic trade Of England for moro paper circn-
aation. Tho Dank Of England Ii tue only
s of snRpy bs5 sSS yet ~ shHw { IS BY
ablo to moot the domapa, hence, wo
presume, tho determination to inerease
the limit to which tho bank may Issue Its notcs
without an equal inorease Of bullion in it's vaults.
In short, 1t is an imitation OF tho paper curronoy
made necessary by tho drain OF apecic to tho
Continent. Tho London Economist of May "a,
anticipating the payment OF the fl000U000
sterling by France to Germany On June 8, and
suruising that 1t would be drawn from London,
instead OF being actually paid out by the Bank Of
Franco, says:s
1t Is oertan that the anal payments Of the nde.-
nlty aro approschtng the beug tia. they
4nonciug in Juno, and such pnyments have always
hitherto made money deareE on tho Continent aud
nsnd e not :. II
aovornnens will use tho gold In the Bank Of France
far e te oo sna II Ths t g94
gold, amounts TO E326o4 ,oo0. Du. then we must
ehcs that according to al reasonable likelihood, to
menta - aoon posable after the financial dslocation
ca,sed BY the Froneh indemnity a over The Direct
lous prudence they have kept tho depreciation Of tho
note OF tho Bank OF Franco within infptueimai
Sui noyorthaas tor afeSange 60 S nsss 1T Is d.
psss1ati9n 9 Is Of extreme imIo5anoo the eehteat
soss fsaas q
can never become what used to be- great e1chaupo
eontre, un1cas The Bank Of Franco Teautno Rpeco
poymenta As tpe French Government has 11an-
Presumed that win ai tho bant md not hinder It ia
N Il IL now distracted tho gold which the bank
nust foy when It again begins payments ,n coin. Tho
higher price for sgood bills to pay to Germany than
dturb the storca ot gold which resss the possibility
Of reatoId5g French currency and AZ The liner mono
doa. .'n'n n'''sf'' 70 ''s'' natural and normal con-
As to The accumulation Of specie IN Germany
and Franco at the expense Of the Bank Of Eng.
land, tho Economist further eays:
The German Government has more than a1hercd
tie beginning Of May-sn intention which we noticed
dee 10 sa 81 ntos rIo
On the "a Of Nay which ia Tie date of the last State
sSss0 Ths 70
having been cotuod than was contemplated when ths
Coinage blu was introduced two month"; ago, the
impressed with the difficulty Of their operation a. i
proceeds, and orc Htraining avery nerve tc
ao posaa q t2a.!en Ga ten n1T n COLI
tan inference can b drawn, as tha whole pro
concealed but tie pressure to coin rapidly during Ii
last lew weeks has Ut leaat been fact of come tmpor
Is y ssnno but hayS haq % %so,eehng % E
iond tor tho pnrpo1ea Of the German coinage. III
amount coined during tho present year has been var
On the Sd Of May tho total was. ITO, 90
On the 27th Of December last It was....... 307lo0
Coined during four months Of 1s7a ., elo, ,o9s. 90
Tho market has no doubt, been easod by oons!d
esable portion Of the above total being recoinogo
10 5a ne
sure On the Dank OF England, witch uacessitated