Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-07-24
Finances In the British
Capital Last Week.
WAS AN EASIER FEELING
Continental Markets Are Hard Pressed
for Money and Several Failures
Are Predicted For the Near Future
The Copper Shares.

New York, July 24.-The London finan-
cial correspondent of the Times cables:
The cloud has lifted from the money
market as swiftly as it arose. On
Wednesday an Uneasy tendency first be-
gan to display itself and dealers with
credit began to think that the bank rate
need not necessarily be changed. No
change was made and the weekly bank
statement indicated that the absorption
of gold and notes in circulation had
paused. if not come to an end. More inn
portant still the figures proved the strin-
gency to be artificial and the product of
the banks own action. To make money
scarce in the open market it has borrow
ed more than it lent, either that or it
sold stocks for cash. Instantly the mar
ket felt at ease with itself again and rate
cutting was suspended. Early in the week
the bill brokers stood out against the
market and refused to buy bills under
33s per cent. On Thursday they did a
small business at 31s per cent, OCCASION
ally less and yesterday the rate was
about ga per cent. and threatened to go
below 3 per cent. this week. At the same
time money had fallen to 2 and 21a per
cent.
These weddings are unpleasant and
everybody is inquiring why the bank was
seized with such alarm-Droducing ener-
gy. The explanation is simple enough.
Had the bank not acted as it has DONE,
gold would ave been exported and we
should have seen a 5 per cent. rate es-
tablished before we could get it back
again. By cornering the market at once
the bank forced rates up turned ex-
change in our favor and drew gold from
the continent. So potent has been it's
influence that the bank of Amsterdam
has been obliged by swift successive
steps to raise it's own rate from 2h to Az
per cent. in order to protect it's bullion.
Trouble has perhaps only been postponed,
because the situation on the continent is
still precarious, out domestically all
seems trim and stable.
A secondary cause of the banks action
is to be found in the evil reports which
lave been circulated about the stability
of the Birkbeck building society. In the
course of years, this institution has de-
veloped a large business as q deposit
bank and now holds about G10,O0 900 of
money all repayable on demand, besides
a million sunk in brick and mortar. By
allowing a liberal interest to depositors
it's management has been driven to in
vest in many securities of a speculative
character. To relieve it of some of these,
it years ago created two trusts each with
$500, 900 capital, but this was not enough
and q fortnight ago, a run began, threat
ening to pull it down. Happily the Birk-
beck possesses some millions of good Sc
~curities and was able to find means to
pay. The danger, therefore, is now over.
but reorganization must follow. Had
this concern stopped payment the conse-
Quences must have been most lamentable
for deposit making banks in general and
for thousands of humble persons. The
bank of England, therefore,, did well to
act energetically to bring in gold.
Abroad affairs nave not appreciably
mended the Paris bourse overloaded and
lethargic. frankfort and Leyden are in
the same fix and ugly suspensions are
dreaded for the autumn. Perhaps the
fear may work it's remedy without crisis,
but the situation is precarious. In Nor
way the great wood pulp industry is
paralyZed by the C~hriStOphersOn failure,
which hits German bankers severely, his
liabilities being nearly $500, 900, with as
sets doubtful, as his business was kept
floating by accommodation bills. Spain
falls from bad to worse. Retrenchments
can't be enforced by it's feeble govern
ment and the people are determined to
refuse to pay the new taxes. The Roum-
anian harvest is a disastrous failure. but
the Russian shortage is declared less than
earlier statements Still all the world
wants money and three parts of it can't
get more. Our own mOneyed classes
speculation are terribly locked up and
are consequently unable at present to
operate freely even in American rails,
whose bright prospects are now daily
set before them in glowing colors.
AS for copper shares, the public inter-
est in the gamble is at zero. The appoint
ment of Clinton Dawkins to be senior
London partner of the Morgans is gener-
ally approved here. His career beats
romance, but still all say his success is
A.oinnnAlx, daSnrNa6