Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-01-30
Has Been Rather Dispirited
For Last Week.
ADVICE TO INVESTORS
Much Attention is Being Paid 10 KAT
firS--SaleS of Our Rail-
road Securities

New York, Jan. 3O,-A dispatch to the
Times from it's London financial CORE
spondent says:
Our market has been rather dispirited
the last week over the fact that the bank
rate dld not come down to 3 per cent on
Thursday. The figures in return would
nave allowed it, but the move must come
next week, although the bank is losing
rather than receiving gold from abroad.
Last year you intercepted nearly all the
usual Australian supply, taking about
ao,6Vo,0Oo from Sydney alone and there is
still q demand for both New York and
Berlin account. The inflow of revenue,
however, Will now help the bank and
G14,oO0 in coin came back from ac-
tive circulation last week. Adding the
notes returned, the reserve has risen
19l9,ooo and the more it grows this way
the greater power will the bank have
over the market. But to get this power
the rate must be lowered. The effect of
an aerial figure, such as 313 per cent now,
is depressing the open market, which
works down in an effort to drag the bank
after it. Some money now is less than l
per cent on call n it is a struggle to
keep the discount above 2 per cent.
Business is none the less prosperous
and expanding, the last half year being
a tOurishing one in our banks, all of
which have made an excellent profit. The
balanc carried forward in Paris, for in
stance, is over $50, 600, after paying 10 per
cent dividend, or as one director said to
me just about the amount stolen. This
theft has been the sensation of the week,
the thief, undoubtedly one of the banks
employees who was unable to cash the
notes, has already sent t~wo-thirds of
them back. The rest will probably come
back or be DESTROYED.
"Ihe stock market is rampant, but the
business done in yOur railroad securities
still shows a great prepOnderance of sales
by the old time holders and our gamblers
are beStOWing more attention on Kaffirs
thai on American rails. The attraction
of the latter, however, will increase as
prices advance. therefore speculation in
them is developing fast. But l would not
advise you to trust to being unable to
unload again soon here what you have
bought with such vigOr. The moment you
attempt to do so the market will fall to
pieces because there is not the stamina
investment buying alone can give.
Bankers tell me that the loans or
American stocks are not increasing. The
money lent on your stocks is carried or
the weeks stock exchange settlement al
a cost or n average of less than Az pei
cent: let the average rate advance to GN
per cent and we should all be sellers. AS
the market is soaring. the quotations or
New York Central, Milwaukee, Northern
Pacific and such shares are tempting
people here to sell short. 1t is expected
here that you will make them pay fol
this and the more they sell, the better FOL
the market riggers.
Copper is going at ESQ to those in tn
swim here and l predict that cope,
shares AVE still a long way to mount
The market for them, all the same, il
manipulated from the inside and deco,
shares, like Rio tin, are little dealt in b,
the house. Stock exchange jobbers ar
erNou touching them. They have ~
mass of shares to handle and are Away,
being caught. This applies to much o
the business done in the Kaf1ir circus a
we'll. In short, caution with reduced
rather than increased commitments, i
what the general position of the Londol
market i~nculcates. The continental maj
kctS are better, thanks to your money
but Paris is heavy, owing to the end o
the month settlement. Berlin is also no
buoyant, but your bankers nave helpe
both France and Germany to cas-,
! money!