Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-02-27
Weekly Review of the Situa-
ton in London.
THE BUSINESS IS GOOD
But Not Quite What it Should be-
Speculation in Mine Shares
Continues Unabated

New York, Feb. 27.-The Times London
financial correspondent cables:
Business in a general way continues
good, but we are not yet quite so happy as
l thought we We're going to be. We are
afflicted by a multitude of small worries
incident to empire. Money has been rather
dearer, too, this last week, but was not so
scarce on Friday as was expected. Inc
amount borrowed at the Bank of England
was therefore moderate and discount
rates are already advancing. Bills to ar
rive early in March are being taken at z
per cent. The squeeze, in fact, is quite
temporary, caused by a conjunction or
stock exchange payday and the dlstrlou-
ton of over G5, 700, 600 in railway divl-
dends. Next month, however, the short
money market is bound to be less easy
than it has been since the new year, AZ
though there is reason to expect a great
scarcity of cash. Firm money and q weak
discount are most probable.
still we are not wholly happy. Our
croakers see a big deficit of e1,000, goo or
more in the national income at the end OF
the fiscal year on March 81 and they pre-
dict more of an income tax. A deflclt OF
some amount is certain because We are
spending about $50, 600, coo on our army
and navy this year and will spend more
next year. But the government can avoid
taxation if it likes by suspending the
wasteful terminable annuities under
whose operation our debt is being redeem
ed. That would set free about G4,OOO, OOO
estimate and enable us to waste our SUBJ
stance in concert of mind for a FEW
years more. 1t would be a terrible affair
if we were obliged to cut down our naval
programme. Tremendous labor troubltS
must follow at once and with them the
characterization of the iron and steel
trades.
ION the stock exchange the strength
and that have prevailed are
nothing short of wonderful when we con-
slider the apprehensions excited by the
sudden death of President Faure and the
state of Paris. Prices have been We'll
supported and a large amount Oh business
has gone on, chiefly, however. OF the
speculative kind and still in mine shares
more than in American railroads, what
course the market will take toward these
latter seemed less clear last week than
the week before, but l think the situation
sprang from a slight trepidatlon about
money rates more han anything else.
Certainly our people n newspapers
have received the Central Pacific ana
Southern Pacific scheme, we'll not en-
Enthusiastically it Is true, blu sensibly, and
have adopted it. With more such STUN
bling blocks put to one side, 4 clearer
course for a we'll sustained advanc IN
prices is open.
But you must continue to lead, as a
falling wheat market alone VIII
off our still timid buyers. Our mill wall
dock scandal, a petty affair in itself, illus
trates one of our commenest stock vices
the habit Of paying dividends out of the
capital. The mill wall people collected
less revenue than they paid away in dlVl-
dends and so carried accounts in Their
books as still due that had been paiu
years ago and sold fresh preference stock
from time to time to make good the gap.
In this way debts due the rose
from about G22, 600 to G230,OO in the
course of a few years. Many companies
play the same tricks, as we'll as other
cards, either to write up leaseholds or re-
frain from writing down or charging re-
pairs and renewals against the capital,
thus eating up their substance and leaV-
ing the husks to pOsterity.