Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-03-27
London flnaucler Says It viii be
Rampant This Week.
MARKET Is NOW VERY BARE
Advance In Discount Hate Expected
Credit Basis l. Too Narrow Con-
sincntsi Markets sim Morse.

New York. March 2i.-Thc Times
financial correspondent cables from
London
we shall have a scurry after money
this week. for the opening market II
now very bare. Notwithstanding It's
last expenditure. the government has
gathered nearly 100000 pounds TO It's
credit In the Bank Of England. or with
In about 100000 pounds year ana
the market has less. or relatively much
lcrs In the way Of resources now than
n had. A. more business II doing and
larger weight NJ securities has to be-
carried. Il follows that the credit pinch
next week may be extreme aud l shall
not be surprised to ind that between
now nnd the seth inntunt tho Hank Of
England has advanced On loans elk tn
seven millions. The smaller OF these
amounts and added sums IL has already
lent VIII suffice to hold the market Ia
It's grip. after the new quarter comes
In. almost from mld-Aprii. Thus the
debt OF the market 10 the bank In ten.
ponry loans. say 500. 600 pounds. the
British and Indian dividends paid and
available for the market. say GOO. 0o0
pounds-=a shortage Of 2,0lo.0O0 pounds
IN addition ~ the heavy disbursements
FOR public services. may be- counted up
on. 40 that April might SEQ Tor short
tim" low rates OF Interest Hut they
cannot last and such IL the state u
credit everywhere In Europe that you
VIII dOtwell 20 play fof n troubled Lon
don market all through the spring.
Mote always that We do not rvtain
a single ounce OF the now gold seut un.
We had upwards ~ 10000. 900 pounds
worth pass through our hands since
fhlm lime "A uaFA and the Hank -
England N poorer now than then BY
isi 900 pounds. II loses metal weekly
on balance. and experienced dealers IN
credit already begin 60 anticipate an
advance % the discount rate soon. This
IL not Immediately probable and next
weeks scramble must not be Interpret
cd In that way None the less II II true
that our market II liable to harden
again and Unexpectedly, before long,
All European money markets. a. well
All European money markets. ms well
dependent upon them and all others are
az present IN mora or less narrow cir
cumHtanccr.
''rhc monetary conditions. present
ana prospective. explain continued
lcthargy In the stock markets. Small
people arr afraid u operate and the
large ones have ~ much ~ they can
do TO kcup quotations hard. After
easter n dash may be- made 10 try and
II cannot be sustained because the
credit basis IN too narrow for free deal
| inRs, We have Less than We had twelve
months ago and In the new securities
created and the advanced prices Of the
old ones We have about 100 90. 0co
pounds more In values to carry. All
| OF our credit resources win therefore
be engaged M 10 the hit. Had you not
taken home 30 much OF your railroad
stocks we must have ceased plhyinn
before now and since you have ncufiy
stopped your purchases We have become
Increasingly unable 10 play the old, old
game alone. even for a single week ut
a stretch.
After all. our position IL easier than
that ~ Paris or iicrlin or Vienna,
where the volume or Inflated values Co
be kept before the world ~ good He-
curitlca' II fast becoming unmAnagc-
able. say nothing about the copper
shares which have got 10 a point whore
no sane person touches them. Nor need
one dwell again upon the French load
~ spanish securities, both government
and railroad. although they 10 mean an
imminent losH ~ nt least 100, 900 900
pounds TO the French market and the
people.
"Morc disaulctlnR even than these In.
dlgcstiblc masses II the inchoate lum-
bile Of H0-called industrial corpora
iions,' which have been created aud
nunK NJ the continental public In the
last three Year,. ~ first the shares Of
these adventures attracted buyers
through the free use of the premium
bait. but this charm has ceased for
some time Co work and today the
French banks and finance houses are
Hmothercd In unstable paper They
H,aFrcr along partly under the load OF
credit obtained on bills discounted In
London. This over-g0rged condition ~
the markets may he worked on or kept
for some time from the oycntuatlng
crisis. I do not wish IN alarm YOU. but
merely indicate In broad, clear lines. tho
chief features Of both the credit and the
stock markets position NJ this east
ertlde. ana Insist that II contains ele-
mentF OF n dangerous ana oven an cx-
ploalve kind. which should render your
operators and bankers more than ordi-
narily cautious. They must expect ma
solid heip from this side N they are
"A. NasN.