New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-12-10
CHECRTyG THE OUTFLOW or GOLD.

CHECKING THE cOJFLOW UT bOHD'
The Bank of England has raised its rate o.
discount at last The advance to per cent
can only be regarded az tie commencement
of strenuous efforts to protect the gold re-
serve. which has now fallen to $125,OOO,OOO.
As is usual in such cases, the Bank VIII
doubtless move gradually, and if 3 per cent
does not bring in gold faster than 1t goes
out. 3l2 per cent will probably be tired, or
highcr rate. That the present advance VIII
have comparatively little effect upon the
movement Of gold is generally inferred from
the rate of exchange, which Is considerably
below the point at which specie shipments
are profitable. But even this advance may
diminish The buying Of American securities IN
England, and for some time the rae OF e1-
change has been kept down by the dealings
in American securities rather than by the Dal-
ance of commercial trans ctons. Moreover
the markets are likely 10 anticipate the
further advance of rate which VIII doubtless
follow if per cent does not suffice to check
the outflow of gold. 1t is not improbable
too, that the high prices of many American
securities may lead to some realization by
foreign holders, in view of the prospect for
better market for money in London.
II Is difflcut to Judge how far the monetary
situation here may be affected 10y this step,
taken so late In the season. 1t Is now only
three weeks to the end of the year, and large
disbursements here are expected to cause
great ease in the money market before the
middle Of January. The disposition of many
lenders may be to take advantage or any
Temporary pressure for loans in order to put
70 or
rates. rather than to realize what car be
gained Though premiums during tie few
weeks of comparative strlngency. III money
can be had, in sufficient amount to meet
present needs, without impairng the reserves
necessarily held for payments about January
/. it may be anticipated that no severe OF
long-continued pressure will be felt, though
speculative operators may at any time De
forced to pay a premium. But the real ques-
ton is whether money enough can be had TO
carry on business at nearly its present volume
until the new year has opened. Strange as
il may seem. there is a considerable pressure
upOn the banks of nearly all the interior
cities. and their demands upon New York
and Boston have continued large up to this
time. The volume of business is enormous
last weeks transactions, both in New York and
outside of this city, were the largest ever
known in a single week, the exchanges
amounting to 1921, 662, 615 Ourside of New
York The many new enterprises which have
recently been launched, and the new securities
which have been offered, have absorbed a
vast sum of money, white the boarding both
Of gold and currency has been at a rate never
before known in this country. and has with
drawn from active use perhaps $2OO,OOO,O0O
OF money.
There is nothing hollow or fictitious in the
prosperity of the county. Il is because that
prosperity Is real and great that the demand
for money presses close upon the supply. lie
may be that the boarding. the investing, the
new enterprises, and the enormous volume of
business, have absorbed more of the active
CAPITAL of the country than 1t can afford to
spare as yet, and this is the more possible
because great reliance has been felt in the
continuance of heavy imports of gold. If the
Bank of England succeeds in stopping that
supply, there will probably be a close money
market here, at least until the money to be
discussed in January has returned To the
monetary centres.