The representative., 1899-07-27
WORKING OUT
Gold Growing Scarcer-England Is
Trembling on the Verge OF Panic
The Whole World Grabbing
for the Yellow Metal.
The Blanket Not Big Enough to Cover
All the BedfellOws.

NEW YORK, July 14.-The heavy bal
ance of trade in favor of the United
States as against England is causing
grave fear, which is expressed in the
cables from London, as to the outcome
of the demands that are to be met by
the British in the near future. The
shipments of gold from America, which
have been in the nature of loans and not
payments, will certainly cease in a brief
period, and the flow will then start back
this way. At least that is the way it
looks at present. 1t is about time for
the movement of breadstuffs to Europe,
and when that is once on in earnest the
London financiers do not expect to re-
ce1ve gold from this side On the con-
tary, they realize that there will be calls
upon them for gold to meet payments
due in America"
ANXIETY IN LONDON.
LONDON, July 14.-Business in finan-
clal circles is considerably checked. ow-
ing to anxiety as to the future, the re-
quarters, the scarcity of money and the
recent large sales of consols. A block
OF E1,0O0,OO0 is reported to have been
sold Wednesday. To add to the appre-
nenslon is the season when the prov
lnces require more money than usual in
connection with the activity of trade.
But, nevertheless, bankers and others
are keeping large surplus balances for
emergency purposes. Rumors are cur
rent OF impending financial difficulties:
and in the circumstances it is not sur
prising that banks and others are act
ing with more than usual precaution
just now in keeping surplus balances
well in hand.
BANK RATE RAISED.
The Statist, in its editorial on the
money outlook tomorrow, will saw:
The Bank of England has raised the
Dank rate from to 31a per cent, and to
az per cent for short advances. There
was some question whether the general
rate should be put up to 4, but it was
finally decided that an advance of u
per cent would be sufficient for the mo-
ment
lhis step was practically forced
upon the bank by further heavy reduc-
tlons IN the reserves of the New York
banks from 100000 to e1,O0O 600
This reduction not only made further
sold shipments from the United States
out or the question, but brought London
TO face the possibility of New York taxi
Ing money from Europe as soon as
wheat begins to move freely.
The continued outflow of cash into
the country, the French competition fo,
gold IN the London market, the inability
OF the Bank of England to obtain gold
abroad 70 greater extent than is neces.
sary to meet interior requirements. and
the ability of Japan to take gold awav
II she requires it-these are all addi-
tlonal factors for protecting the bank
reserve. Since July Is the reserve has
declined by about 100000.
BIG DEMANDS TO MEET.
will the present rate have to be fur
ther advanced? is the question. Last
year, at this date, the reserve stood at
more than 925,OOO,OOO. Then we were
calling in money from Germany and the
United States was taking payments for
wheat and cotton largely in securities
This year we have no balance in Ger.
many, and may be unable to pay the
United States by selling stocks. Hence
we must be prepared either to offer p
rate sufficiently high to allow American
banks to keep balances on this side. or
to send gold in payment for products.
We may. consequently, witness a 5 per
cent rate here, and higher rate in Ger.
many than last year."
The Westminster Gazette this after.
noon says:
"A call for G1, 1,25O,OOO will fall due
next Monday for payment on the Jana
nese loan, and on various issues of