Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-05-24
To Assist the Old Lady of Threadneedle
Street in the New Policy She Is
at Present Pursuing.
THE FLOW OF GOLD FROM AMERICA
Is Exciting All Kinds of Surmises in Eunpe as 70 Its
Cause, but the Mckinley Bill is the
LOudest Spoken Of.
GOOD TIMES AHEAD FOE THIS COUNTRY
rBY CABLE TO THE DISPATCH J

rBY CABLE TO THE D1sPATCH.J
LONDON, Ma 2S.-An informal meeting
was held Yesterday at the Bank of England,
when the Governor invited the cooperation
of the six great banks, and tried to impress
upon them the necessity of assisting the bank
in maintaining discount rates and the value of
call money. 1t is pointed out that 60, ,500,-
600 of deposits must be shortly remitted
TO Russia, and bills to the extent of 81, 5OO,-
600 held by Russia are about to mature ard
must be paid in gold. In order to accumu;
late this sum and to strengthen its position,
the bank has raised its minimum rate of
discount TO 5per cent and advanced its
purchasing price for foreign gold coin of the
standard of nine-tenths fine from Sc shillings
Spence per ounce to 76 shillings 615 pence.
But before one-third of the amount re-
quired had gone into the Bank of England
the joint stock banks and discount houses
began to compete actively for bills, and dis
counts have now fallen from AZ per cent to.
under per cent Foreign exchanges have
responded, and are again moving against
this country.
1t was represented that it was useless for
the Bank of England to use exceptional
means to attract gold if it did not have the
support of the other banks, and if this sup
port was not given and the floating supply
of money reduced, the other banks might
have to face another scare and disturbance
Of rates when present accumulations were
withdrawn The bank has accordingly re-
duced its purchasing price to 76s Cd and
will likely further reduce it to the normal
76s sd
A Settlement in Paris,
Extensive preparations are being made in
Paris to meet the coming settlement, which
begins next week. Private deposits at the
Bank of France have increased over $50, ,000,-
600 francs since the middle of last month,
and every endeavor is being made to patch
up weak positions. The markets to-day
have been generally weak on the selling of
foreign stocks and Paris and American
shares by prominent house with German
connections, which bought yesterday.
The manager, of New York brokerage
house in London, who has been quoted be-
fore, has this to say about the European
markets: 'The Portuguese Government has
succeeded in forming new Cabinet, and to
short-sighted people this may seem CON-
forting. But it does not change their posi-
tion in any way. The banks in Paris who
svndicated their tobacco loan have done all
they could to maintain the price of the
Portuguese loan both in Paris and here, but
YOU will notice from quotations on the Paris
Bourse that the banks interested in this to-
bacco loan have all seen their shares depre-
ciate in value.
Overloaded With Stocks.
'I still believe financial associations and
stocks in Paris are overloaded with Cont
mental and South American stocks, and they
are merely putting off the day of trouble by
making strenuous efforts to maintain the
prices of what they hold. London is not
buying for English account any of this
stuff, but theyIsare buying for foreign &C
count The French people are working the
market here, so as to maintain prices and,
if possible, prevent trouble when the
monthly settlement comes in Paris
"This does not affect the American mar
ket, except in a sympathetic way, and If
gold exports from your side ceases, we feel
assured on this side that your bank state
ments, which showed so well their standing
the large drain of gold from you, will GER
tainly now show great improvement and
great strength. If the exports of gold from
your side are stopped, the highest authorities
here look upon your market as going In for
big BOOM Your crops are good; crops in
Europe are bad. Your railways will have
big traffic and farmers will get big price
for their produce That is why 1 consider
that the rise on your side is genuine one
and one that can be depended upon, whereas
the rise of the last few days in continental
stocks is fictitious to the extreme
Confidence Prevails in London.
seThe houses in London that have been so
much spoken about are now left alone, and
confidence to certain extent prevails in
London. All look upon the action of the
Bank of England as exceedingly clever, and
the Joint stock banks are to certain extent
bound to follow the lead and back the
policy of the Old Lady of Threadneedle
Street. The worst feature of the Paris mar
ket is not so much the immense amount of
money they have got invested in conti-
mental government stocks as the fact of the
poorness of their crops.
''France is not so much affected by crash
in Panamas or copper as by lack of wheat,
and the absolute necessity to buy from
abroad what they cannot at home. This is
not only financial difficulty, but might
turn out to be a political difficulty. An
other feature which is bound to enliven the
American market is that the craze for
South American gold shares is dying out.
The mining market is dull in the extreme.
The lively market will be the American
one, and believe on the bull side; all tends
that way"
The real cause of the heavy shipments of
gold from America is subject of much dis
cussion in financial circles, and is chiefly
attributed by the best authorities to the