Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-11-13
There is a Feeling of Un-
rest in the Market.
CONTINENTAL POWERS
Are Short of Gold land If America
Should Take Any From London
There Would be a SQueeze--Russia
Is in a Bad Fix.

No' tdDleS. III
more all over Europe there is passing a
wave of dearer money. A fortnight age
discount in Germany was little better
than 8 per cent, Yesterday it was So per
cent and a further advance in the bank
tate is by no means improbable. I Paris
money fell away after the bourse settle
ment and ever in the open market 8 per
cent is now quoted, but business cannot
be done at this figure to an appreciable
extent and French bankers are calling
funds home.
With us NE week just ended has seen a
rapid advanc in discoun from AZ per
cent upward and it is doubtful whether
much recoil is to be expected. All sorts
of demands are pressing upon US, not the
least from the municipalities, habituated
to spend from II, 600. 900 to Is, OOO. 900 pounds
with borrowed money. On Friday 5000, 900
pounds of government treasury bills was
sold, mainly in the open market at an av-
erage of slightly under 4 per cert for six
months and slightly over 81 per cent for
the yearlings. the highest rates paid in
many years.
These bills must be paid for on We'd
nesday, which is also stock exchange
pay day, so a sharp squeeze is looked for,
although the Japanese government took
a portion of the issue. 1t by no means
follows that the tightness will continue,
because the government ives all the
money and must Immediately pay it out
again. The French have been heavy sell
ers of securities. principally mines, in
the last fortnight and may draw money
away. Only gold would be in New York,
likely to prevent our market from slip
ping back. BUT real ease is impossible
because of domestic conditions.
We are less afraid at the moment Of
gold demands from the continent and the
story about India ear marking gold in
the Bank of England is absurd. India is
much more likely to require a loan to en-
able 1T to cope with the disastrous famine
roW raging there. Stray driblots of SOW
eleigns are sure to leaye us and the gov
rnmen will be soon Obliged to send more
to the Cape, but New York is the present
true source of our apprehension. We
fear not only withdrawals Of our ender
stock. but the interception Of our Aus
tlalian supply, now more than ever nee
essary since we lost that from South At
RIGA. Therefore, dealers in banking cred
1t watch your market anXiOuSly and will
only feel relieved when they see your
banks becoming stronger through the re-
turn of currency in the interior.
TWO millions taken from our stock by
you would almost certainly force a six
per cent rate from us n after that the
deluge. But there is no trace of this
dread on the stock markets. The gamble
there last week was very mild. Dealings
conferred mainly in the African and at
times the excitement was tremendous.
The market bosses caused to be circulated
skilfully concocted estimates of increased
profits certain to flow from the T%ransvaal
,;,,o =~,,- Al~ -
them and the spirit of gambling was
therefore exceeded to such an extent that
the whole estimated advantage is already
more than discounted. The prices of
many shares We're raised from 80 to SO
per cent and the market remained yester-
day hard as nails. It's condition is none
the less most dangerous for most of the
buying was of the irresponsible sort SO
that mere rumors of a serious reverse
would certainly be productive of much
mischief. Let no such news come, how
ever. and the gambling would probably
spread in other directions until no section
of the market would be left wholly put
side it's influence. The mood is on us and
the news of victories would induce an
outburst compared with which what we
have yet would be trivial.
Better news comes from Spain about
the disposition of the people toward the
new taxes and it is said Barcelona is Civ
ing way. The MINISTRY also seems de-
sirous of introducing real economy by
cutting down the naval and military bud
gets. Should this policy be squarely fol-
lowed, Spain would soon have cause to
han you for relieving her of her suck
erlike OlOnieS
From Russit another story altogether
reaches me. The Russian finance minis
ter frequently protests that it is all right
With the empire, the financial position
was never better, money is abundant,
banking and industry sound and so forth.
The truth is that the industrial and fl
narcial crisis is most severe with fire.
quent failures and scandals. Very soon,
it appears to me. Russia must have money
from somewhere or else be driven to do
something desperate. And her bosom
friend. republican France. can't afford to
give her a fa~rthing-what with the
overlooking condition of her own budget,
the unremitting pressure of domestic de-
mands, the exhibition in Paris. the metro
politan railway and public works
throughout the country. Here we would
not lend money in Russia II we could, yet
it is a case of borrow Or burst, but the
more the pressure for financial assist
ance increases elsewhere the more rapid
ly is Russia being driven toward the pre-
Our trade last month was the best in
months his year so far and the
was fairly well distributed,
the United States contributing some
thing to swell the totals. We are puzzled
though. over the movements of copper be-
tween the two countries, because the fig
ure seem to indicate one set of your mer-
chants sells US metals, while another set
buys back. The supplies of the rest of
world does not increase with the ra-
pidity we expect, yet trade holds to the
confident belief that prices cannot be