The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-06-26
4 TIGHT SQUEEZE.
London Narrowly Escapes Financial
Panic


New York. June ss.-The Times Lon
don financial correspondent Cables-
We have had an anxious week, only
partially frightened at the close by the
formation OF q new French ministry At
last the Paris bouTse has begun to take
alarm and al the early part Of the
week poured tint0s and African gold
shares into the London market Fort
unately cur stock exchange had pre-
vi0usiy sold short pretty freely and
therefore took the shares without much
EinchlnE
--SrIII tirtos at thaIowest wzreE10 IN
der the top price and other things
shruak Il proportion Thursday even
ing saw rally ard since then the
markets have beeu sreadler. but We are
roc out Of the region Of scare yet Tor
the Trausvaal dispute i as actuate as
ever Until IL is settled business must
remain bad. because the people refuse
70 Speculate. and dealings therefore are
confined 70 investments, which the mar
k=ts cannot live upon
To add 20 the difference money again
threatens 20 grow dearEr- 4 free now
OF your gold u Europe may prevent
rez4 string z-cy but bankers who know
German credit in the autumn The
reichs5a1k has had 10 raise It's dis
count rate 10 Az Per cant which means
80 Per cent FOR advances on securities
AID il i asserted that the banking bus
sless vas never in 4 tighter place IN
Germany since the empire was formed
Al available capital and credit are
locked ID in securities which cannot
q realized and the only hope - said to
IL II the further unloading u Amer
lean railroad securities IN New YORK 70
pay for gold The banks. not IN Lon
q 70 al1Ce- but all Eng ana over ma *
up their half yearly accounts On June
80 and must call at least 10. Qoe SEQ
floating credits or tire market in order
u display the proper amount Of cash
IL hand and al the Bank Of England
Were their figures 10 BE- made Up with
cut this window dressing. We should
most likely have a banking panic The
process. Therefore IL necessary IN self
defense but highly movement and
next week five or SIX millions may have
- be borrowed from The bank Even
then IL viii Be q pinch and scramble
and high rates for short credits
Up u within The last Two days mon
- could b. borrowed for the week at
u. and Ia per cent Today rates are
- per cent because the week carries
Is into July l. Next week stock ex-
change money VIII probably cost on an
average 5le per cent although the ac-
count then to be settled will be less
heavy than usual As for discounts,
they have passed the highest point for
The moment and VIII slip back again
ward Per cent Esxt week because
g1ld IS slowly dribbHug into the bank
This squeeze is quite temporary and
or market from one point OF view -
c. nfor1zble enough It 5 danger from
= -rhCuC THAI We have ID dread
The bankers association met Thurs
dar ard discussed plans for increasing
u reserve. now almost nil but mere
" appointed q committee 10 consider
and report Nothing viii be done IN
less under stress Of panic. because
rhz banks all strain after high divi-
G=nds and are too jealous Of each other
20 take concerted action Five per cent
q their deposits j. permanently hoard
- in gold and not seen much. but We
lodged the bailiEs and kept solvent
looking on nothing 50 long that we
shah continue the game Until some
thing breaks sOneW here
Nothing particular - doing IN your
securities BY the general public Pro
f=ssiouai dabble il AtchIsou and Norrh-
ern Pacific preferred and in Deuver's
~ OCCASIONALLY BaItimors's but John
Bull i not playing He prefers mines.
especially wild cats. Money has been
found though. for the Central Cuban
railways offer today
The Spanish debt squabbIes hzvs
begun and the French mean fercely
70 resist the 20 Per cent tax on coupons
and sealed bonds
spain cannot pay. all the same. but
Va ara only bears here and don't care
farrhIcS.