New-York tribune., 1899-07-15
MONEY SCARCE IN ENGLAND
ANXIETY IN FINANCIAL CIRCLES RE-
QARDrNd THE OUTLOOK.
BANKERS PREPARE FOR AN EMERGENCY
RuMoRs OF IMPENDING FAILUREs-
BANK OF ENGLAND FORCED TO
RAISE RATE.

BANK OF ENGLAND FORCED TO
RAISE RATE
London. July 14.-The Press Association to-
day sent out the following statement which Is
believed to be accurate:
Business in financial circles is considerably
checked owing to a certain anxiety as to the
future and the remarkable reticence maintained
in all quarters, the scarcity Of money and the
recent large sales OF consols. block OF f1OoO,-
900 Is reported to have been sold on Wednes-
day To add to the apprehension it is the sea-
eon when the provinces require more money
than usual in connection with the activity OF
trade But nevertheless. bankers and others
are keeping large surplus balances for emer-
gency purposes. 1t is well known that con-
sidera BILE amount OF German bills are held here
at speculation rates. and that large amount
of credits are on a Berlin firm which recently
failed.
"It is understood that a small financial house
here arranged to take the bills as they arrive
from the East through July at rs, and as dis
count is 32 this is a very serious matter FOR
the firm. Vague rumors are therefore current
Of Impending financial difficulties, and in the
circumstances 1t is not surprising that banks
and others are acting with more than usual
precaution just now in keeping surplus BAL
anoes well in hand"
CAUSES OF RATE RAISE
~The Statist," In its article on the money
outlook tomorrow. will say
'sThe Bank of England has raised the bank
rate from to 311 per cent and to Az per cent
for short advances. There was some question
whether the general rate should be put UP 10
A, but II was finally decided that an advance
of u per cent would be sufficient for the mo-
ment
This step was practically forced upon the
bank by further heavy reductions In the re-
serves OF the New-York banks from t9oOOooo
10 FL 100000. This reduction not only mace
further gold shipments from the United states
cut of the question, but brought London 10 lace
the possibility Of New-York taking money from
Europe so soon as wheat begins to move freely.
1.-The continued outflow OF cash into the coun-
try, the French competition for gold IN the
london market. the inability of the Bank Of
England TO obtain gold abroad to a greater ex-
tent than is necessary to meet interior require
rnents. and the ability of Japan to take gold
away If she requires it-these are all additional
factors for protecting the bank reserve. Since
June 21 the reserve has declined by about
100000.
ENGLAND'S FUTURE NEEDS.
.~vvill the present rate have TO be further ad-
vanced? is the question. Last year. at tnis oate'
the reserve stood at more than t-oVVV'V"V'
Then we were calling in money from GERMANY
and the United States was taking payment LOT
wheat and cotton largely IN securitles' Ahs
year we have no balances in Germany ana may
no unable to nay the United States by selling
stocks. Hence we must be prepared either TO
offer a discount rate sufficiently high to induce
American banks TO keep balances on this side or
70 send gold in payments for produce. We may
consequently witness per cent rate mere. ana
. higher rate In Germany than last year."
'.The Westminster Gazette this afternoon
says:
"a call Of FL 125OOO0 will fall due next Monday
for payment on the japanese loan ana ON Vari-
GUS other issues Of capital