Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-04-03
Bank is Depended Upon to a
Great Extent.
PREDICTION FOR FUTURE
The Market is Liable to be Very
"SQually" During the Next
Quarter--Bank's Issue.

New York. April 3.-The Times Lon
don fnancial correspondent cables: we
have passed a strait and in a monetary
sense are on a broad river again. But II
is a. river b%etraying symptoms of a COM
ing drought. Dropping the slmlle, our
money market has this week had to
borrow upward of f7,CO0,OoO from the
Bank of England to help it through the
stock exchange settlement and end the
quarterly demands for cash and credit.
Added to previous. borrowings, this put
the market over f10, 600, 600 in debt to
the bank. One year ago the debt to the
hank was less than half this sum-. Per-
hans the fact that Easter and the end
of the quarter came together increased
the demand for assistance and some OF
the holiday cash will doubtless come
back. This, however, is scarcely worth
weighing against the increased poverty
of the markell poverty which gives II
a permanent trend toward dearness. You
may take it as certain that the market
will not be able to repay the bank ali
this money during the present quarter.
For a few days at a time 1t may get
free. but each recurring stock exchange
settlement will see the market forced
to lean on the bank, and as the months
pass it's dependence will increase.
Unless gold flows in from abroad, as
there is 70 sign of its doing, we must eN-
pect the money market to be subject to
spasms and ~tiShtneSS all the summer.
, DO not, then, allow the present lowness'
of discount rates mlslead you. Ii the
bank cannot afford to allow its rate to
fall below 8 per cent, and 1t asSuredly
cannot in the present circumstances, the
open market is playing for a bad fall
by driving its rate down to 2 per cent
or little more. Short credits may be
plentiful for the next few days, but the
supply will run short and / will not be
surprised to see money as light as ever
on the mex stock pay day. In some re-
spects the demand for money on the
stock exchange this week was less than
was looked for. Less new money, that is,
was required. Still the account was eX-
tremely heavy and afforded striking
evidence of the absence of free resources
among large capitalists.
Bond, bullion and company may seem
richer on paper than ever, because of
nominally owning a greater quantity of
securities but these securities are in
creasingly unmarketable in most cases
and holders cannot shake themselves
clear. Instead Of money raised by
%pledging good securities being lent upon
others equally marketable, it is sunk in
half unstable colonial loans, in under
written shafes OF new companies or III
mine shares. Everybody wants to sell,
In this way the market is smothered.
and large free trading is much ham
pered. Cheap money would soon enable
this to be put right, but we cannot nave
that without some millions more gold,
and so the moral of my tale is Look
out for squalls"
We annot even buy your railroad
stocks back again except in spurts and
with the hope of reselling forthwith at a
profit. From this motive we bought
some and closed out a few bears before
taking our holiday, being in an optimis-
tic mood, but you must not be surprised
to find us eager sellers again before next
week is out. Like yourselves, we con-
tinue to create new locksup for capita
faster than we can save, and the posi-
ton tends to grow strained. The Ger
mans are now buying Spanish bonds
and the prediction is that they will &c