Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-07-17

LONDON CREDIT IN A PINCH
Obser,nnt Bankers nre Cautious No
surprise ~ Failures come Ger
man fiabkers Uneasy.

NcN York July 1.-THE Times Lon
don financial correspondent, cables!
This bias been q week or hurry in the
money market. An anuclpauona ~
ease have been completely fa7slnod and
discount houses have been badly
caught Instead of the market ESCAPE
Iug nom che grasp ar thc Bank " Eng
land lt continues su dependent that the
bank far che last few days hos done
nearly 900 che lime discount business
other credit establishments being half
panIyzad by fright So nppreclable
calming effect has got been produced
Boy tho advance BOO the rate 90 aia per
cont f1r the Bank Of England ia not
only dlscuuutIug nt that ngufe. but still
lending small amounts at o. per cent
a variety " causes have been at
work Political fears nugoudUred b. the
TrauHyuui dispute induce caution, mt
that. though IL has been blamed, H. not
the true source OF the rXlHiing pressure,
fur such frarl usually tend 60 make
money easy. n people are not Inclined
Co uan credit credit cannot become dear
unless holders lock 10 up, which they
have not yet begun tu do. Credit DE-
really morr iu demand aud more ems
ploycd than ever because internal trade
Il " Otherwise with domestic busl-
moss thanks 10 the enormous outlay N
thr government on warlike prepara-
tinus. especially iron cinda. Al the
dock yards are excessively busy and all
armnr plate works. nll blast furnaces
ana 900 engine shops accordingly The
result has been an unprecedented de-
mnud Tor currency with which 10 pay
wages and Tor banking credit IN every
Z - IL. ID. NHHHH HaH#
this better than the fact that HuverolgnH
nrr atiu being dispatched 10 Scotland
/ instead ~ coming Co the bank More
l than the amount pf the new sold
bought by the Rank OF England u pass
| Ing into circulation IN this and other
| directions. The consequence iH that the
| London credit market ~ Unusually
| pinched Tor means at the moment when
] the demand upon IL ~ much In excess
l " previous experience.
! Then also. we begin To suffer from the
] effect nf the reckless extravaganza N
| the past few years and several minor
ana one important institutions this
/ week have been whispered against, for
| mo- discovered reason. our commitments
/ in support nf the German bankers are
still enormous. and viii chicago please
note that Germany h. no nearer qulet
times than before. Each stock eN.
change settlement that comes round
Furthermore reveals greater depths "
involymont In unpincel loans new
| company capital Issues. ANA genw1u
financial aud Hparc-rigging commit.
mentH. The sight Of this condir1n uf
unnirs Induces thr more obHervant
bankers 10 exercise caution and quietly
accumulate a little cash against c0n-
| tingeuClcH thereby Increasing the
strain on the Bank NJ England supply.
/ At an points therefore, the market Il
being pulled upon and 10 would not be
surprising 10 see the bank rate four
per cent next week The discount
houses are quoting So 90 "a per cent.
/ There would not be- nothing deadly Ia
that were our market alone rather hard
up. hut Il might bu productive ~ con-
siderable mischief from the mere .aci
that $40 markets are alike incapable of
rendering each other assistance. n Is
strange that In spite NJ the enormous
production NJ metal the scramble be,
tween the markets Tor lt should threat.
en- tu become No intense IN the comlnr
autumn ne 60 upset tho coach some
where.
30 failures have been announced bul
there need BE- mo- surprise should Homs
| occur Several small discount nrm'
/ competed last month Tor bills 90 arrive
| iu july, until they drove the rats below,
two per cent and one house ut lraH
contracted 60 buy Indian bank bills ar
irving uli through July nt ~. Heavy
loss b. inevitable from this sort " trac
iug Then. also. more than one hat
Huuaii has already happened ON M
continent By which our market hai
J been hlt