The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-08-14
STILL PANICKY.
European Monetary Affairs in Pre-
carious Condition.

CAf1OuS COnQ1t1O1-
New York, Aug. 1.-THE Times Lon
don financial correspondent cables:
PerpleXity still haunts our money
market, rendering business difficult In
the first of last week New York ex-
change frightened US and led to talk
of gold going to the United States. The
Bank of England would be sure to go
up on Thursday, so gossip ran, to pro-
tect the reserve against danger. So the
Dill brokers quoted 3A per cent as their
rate for three months bankers accept
ances and refused to accept less except
to an additional charge should the bank
rate advance. The bank itself only took
90 day bills at its minimum, and asked
go per cent for longer dated paper It
also resumed borrowing surplus bal
anceS from the market, Offering and
81 per cent for money into September
In this move it was not successful, 9TH
er bankers declining to part with their
funds for so long, but all this strength
ened the belief that the rate would be
advanced to 4 per cent.
Thursday came and no change was
made, so the market at once began to
work at or under the 355 per cent, the
bank itself ceasing to get any bills. But
it still went on borrowing for a week or
fortnight, as lenders consented at 21a,
%, or 3 per cent, and perplexity again
laid hold Of the market. Also the news
leaked out that the bank directors
would have gone to 4 per cent but for
the fear that per cent might become
inevitable later in the year. Their ar
gument was; If we make the rate
per cent now, there would be nothing
between US and a. ; per cent rate should
we have a revival of German or ap-
pearance of American demands on our
gold in October. Better, therefore, wait
little and go on trying to make the
open market stiff. The market did once
more stiffen and 60 day bills again
sought the Bank of England and other
joint stock banks also, because brokers
refused to work under 35s to 3A per
cent for any dates. On Friday this
cautious disposition was strengthened
by the export of 400 600 sovereigns to
South Africa, and we began the stock
exchange settlement with distinctly IN
comfortable feelings. Money Saturday
was 10 per cent to 20 per cent on Aus
tralian mines. Yet the sending of gold
to the cape meant nothing because,
having no mint, the colonies there now
and again exchange bars for coin
We, however, must have dearer mon
ey soon. The Bank of Germany had to
go to per cent last Monday and the
stringency there was but beginning. AS
I have always said. the Germans are
wrestling with monetary difficulties as
the fruit of reckless tracking and fin
ance and cannot discover how the en-
pire viii be able to surmount the trOu-
bic without a good, Old-fashioned panic.
In France, too, the position grows eV-
cry week more precarious in spite of
the skill of the Bank of France in col
Letting gold. Business on the BOurSe is
so dead that partners in a large arbi-
TRACE house here which I visit have be-
come diligent attendants at cricket
matches, having no orders to execute.
The calmness presaging storm hangs
over France, but when and how the
crisis may come, am unable to fore
tell. The army FOttenness is alone suf-
ficient to let hell loose in that unhappy
country. The proof that militarism and
true democracy cannot cO-exist. causes
enough gloom.
Turning to brighter subjects, our for
eign trade is now going ahead in a
manner unknown for these many years.
1t is even improving with you and the
deliverance of the Spanish West Indies
has wrought an immense change for
the better in our business there. With
Central and South America also we are
doing an increased trade and China is
nobly spending the money she borrow
ed from US. Most parts of the world
continue freely to absorb our machine
~, particularly that for textiles which
some never contents moan over as
proving that all the world and her
looms and spinning jennies will soon be
able to do without our tissues.
1t is a curious fact that our imperial
possessions over which we strut so par
take but moderately of this general re-
viyaI Canada is doing better by US in
so many things, but not all around:
Australia is still backward and South
Africa. as might be supposed, is down
right bad. Indian trade wears q forced
not to say a glutted appearance. Our
most improving customers are never
foreign nations even paper-sWathed
Brazil showing well in the returns. As
for Door old Europe, it has hard work
to maintain it's old levels but Spanish
orders are better. All around prices
have more to do with enhanced totals |
than quantities Our domestic trade is
still more ffourishing than the foreign, /
as the railway returns for the last half /
creased e., 256, 600 on English lines