The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-01-30
LONDON FINANCIAL REVIEW
BANK RATE CERTAIN TO DROP
THIS WEEK.
Flourishing Condition of the Banks
-Robber Who Returned Enough
For Dividend.-Stock Market.

New York, Jan. 30.-A dispatch to
the Times from its London financial
correspondent says: Our market has
been rather dispirited the last week
over the fact that the bank rate did
not come down to per cent on Thurs
day. The figures in return would have
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 sUnDly, taking
about 50. 800 900 from Sydney alone,
and there is still a. demand here for
both New York and Berlin account.
The inflow Of revenue, however. viii
now help the bank and &714.00O in
coin came back from active circulation
last week. Adding the notes returned,
the reserve has risen SS19,000 and the
more it grows this way the greater
power viii the bank have over the
market But TO get this power the
rate must be Lowered. The effect of
an aerial figure, such as 81 per cent,
now. is depressing the open market.
which works down and down in an
effort to drag the bank after ii. Some
money now is less than l per cent on
call and it is a struggle to keep the
discount above , per cent.
Business is none the less prosperous
and expanding. the last half year be-
ing a f1ourishing one in our banks, all
of which have made excellent profits.
The balance carried forward in Paris,
for instance, is over sec, $50, after pay
ing IS 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 en-
plcyees. who was unable TO cash the
ho- oil fssf7- of
them back. The rest viii probably
come back or be destroyed.
The stock market is rampant, but the
business done in your railroad secuTi-
ties still shows a great prepOnderance
Of sales by the old-time holders, and
our gamblers are bestowing more at
tention on Kaffirs than on American
rails. The attraction of the latter,
however, viii increase as prices ad
vance: therefore, speculation, in them
is developing fast. But l would not
advise You to trust to being able to
unload again soon here what you have
bought with such Vigor. The moment
you attempt TO do so the market viii
fall 10 pieces. because there IS not the
Stamina investment buying alone can
give Bankers tell me that loans on
American stocks are not increasing.
The money lent on your stocks IS car
ried on the weeks stock exchange set
Element at a cost on an average of less
than ~ per cent. Let the average rare
advance to 6l& per cent and we should
al be sellers. AS the market is soar
ing, the quotations on New York Cen
tral. Milwaukee, Northern Pacific and
such shares are tempting people here
to sell short. It is expected here that
ION viii make them pay for this, and
the more they sell, the better for the
r:ldrket-Tiggers.
Copper is going at $50 to those in
the swim here, and I predict that cop
rer shares have still q long way TO
mount. The market for them. all the
game, is manipulated from the inside
and decoy shares, like Rio Tinto. are
.;ttle dealt in by the house. Stock ex-
change jobbers are nervous touching
than. They have no mass of shares
10 handle. and are always being caught
This applies TO much of the business
done in the Kaffir circus, as well. in
short, caution with reduced rather
tam increased commitments is what
the general position Of the London mar
llet inculcates. The continental markets
are better thanks to your money, but
Paris is heavy, owing to the end Of
the month settlement Berlin is also
not -buoyant. but your bankers have
helped both France and Germany to
easy money.