The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-15

Near Future-Cau for Payment on
the Japanese Loan Is Expected
on Monday Next.
NEW YORK, July 14.-(Special.)-Th
heavy balance of trade in favor of the
United States as against England is caus-
ing 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.
II 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 receive gold from this
side. On the contrary they realize that
there will be calls upon them for gold to
meet payments due in America"
ANXIETY IN LONDON.
LONDON, July H-Business in finan-
cial circles is considerably checked, ow-
ing to anxiety as to the future, the
markable reticence maintained in all
quarters, the scarcity of money and the
recent large sales of consols. A block of
10000 is reported to have been sold
Wednesday. To add to the apprehension
is the season when the provinces require
more money than usual in connection
with the activity of trade. But, never
theless, bankers and others are keeping
large surplus balances for emergency pur-
poses. Rumors are current of impending
financial difficulties; and in the circunl-
stances it is not surprising that banks and
others are acting with more than usual
precaution just now in keeping surplus
balances well in hand.
BANK RATE RAISED.
The Statist, in it's editorial on the money
outlook tomorrow, will say:
THE Bank of England has raised the
bank rate from to 3h per cent, and to
AZ per cent for short advances. There
was some question wnecheI the general
rate should be put up 10 1, but 1T was
finally decided that an advance Of u per
cent would be sufficient for the moment.
This step was practic1tiy forced upon
the bank by further heavy reductions
in the reserves of the New York banks
from $4,000, 100000 10 81, DO $50. This re-
duction not only made further gold ship
question, but brought London to face
the possibility of New York taking
money from Europe as soon as wheat
begins to move freely.
The continued outflow of cash into
the country, the French competition tor
gold in the London market, the inability
of the Bank of England to obtain gold
abroad to a greater extent than is neces-
sary to meet interior requirements, and
the ability of Japan to take gold away,
if she requires it-these are all additional
factors for protecting the bank reserve.
Since July Is the reserve has declined
by about $500, 600.
BIG DEMANDS TO MEET.
''Wn the present rate have to lie tnr-
ther advanced? is the question. Last
year, at this date, The reserve stood al
more than e25, coo, 700. Then We were
calling in money from Germany and the
United States was taking payment 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 10 offer a
discount rate sufficiently high to induce
American banks 20 keen balances on
this side, or to send gold in payment for
products. We may, consequently, wit
ness a per cent rate hese, and higher
rate in Germany than last year
The Westminster Gazette this after
noon says:
"A call for E., 900 will fall due next
Monday for payment on the japanese
loan, and on various issues OF capital"