The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-07-17
LONDON MONEY MARKET.
Bank Of England Is It's Sole Support just
al Present.
THE CAUSES RESULTING IN StMI-PANIC
Great Demand for Cash and Errors
of the Past Given As the
Foundation.

! New York. July 16.--The Times London
] Financial correspondent cables: This has
| been week of furry in the money market.
All anticipatlons OF ease have seen COM
! pletely falsifed and discount houses have
| been badly caught. Instead of the market
escaping from the grasp " the INK OF
England, it continues so dependent that
the bank for the last Few lays has done
nearly all the fine discount business, the
other credit establishments being half
paralyzed by freight. No appreciable
calming effect has yet been piodrced by
the advance in the rate to Sls per cent,
| for the bank OF England is not only dis
counting at that figure, nut still lending
small amounts at Az per cent.
variety of causes nave been at work.
Political fears engendered l,y the Trans
vaal dispute induce caution, but that
though 1t has been blaned-is not the
true source of the existing pressure, for
such fears usually tend to make money
easy. If people are not inclined to use
credit, credit can not become dear, UNI
less holders lock 1t up, which they nave not
yet begun to do. Credit is really more in
demand and more employed than ever, be-
cause international trade is so active.
1t is otherwise with domestic business,
owing to the enormous trade in war prep
arations and especially ironclads. All
The dock yards are excessively busy and
all armor plate works. all blast furnaces
and all engine shops accordingly. The re-
suit has been an unprecedented demand
for currency with which to pay wages and
for banking credit In every bsnch OF husi-
ness. Nothing proves this better than the
fact that sovereigns are still being dis
patched to Scotland instead OF coming to
the bank More than the amount of the
new gold bought by the bank of England
is passing into circulation in this and
other directions. The consequence is that
the London credit market IS unusually
pinched for means at the moment when
the demand upon it is much in excess OF
previous experience.
Then, also. we begin to suffer from the
effect of the reckless etJrIvag lnce of the
past years md several minor and one inn
portant credit institution 1t has been
whispered, viii be in IA critical condition
Each stock exchange settlement that
comes round reveals greater deDth of in
volvement in unplaoed loans. new com
pany capital issues and General financial
and shore rigging commitments. The
sight Of this condition of affairs makes
the more observant bankers exercise great
caution.
Al all points the market is being pulled
and it would not be surprising to see the
bank rate per cent next week. The
discount houses are quoted IS to s 81
per cent. There would he nothing deadly
In that were our market a,one rather hard
up. bat 1t might be Productive of consider
able mischief from the lere fact that all
markets are alike incapable &c rel. dering
each other assistance. j. is not strange
that, in spite of the enormous production
OF metal the scramble between the mar
kets for it should threaten to become so
intense in the coming autumn as TO upset
the coach somewhere. No fixtures have
been announced, hut there need be no
surprise should some occur. Heavy loss
is inevitable from trading IF the late sort