The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-08-07
LONDON FINANCIAL REVIEW.
Bank People Say Money Must Cor
Time to BE Dear.

time to lie Dcnr.
New York, august 6.-The Times Lon
don Financial correspondent says: The
position this week did not materially differ
from that of the previous week. We now
wait the course events take during our
holidays and leave speculation pretty well
alone. Money is still dear The bank
of England people say the market will
the worst was over a week ago and were
deeply chagrined this week to find the
bank still master On Monday discount
was Ia to 3-S per cent and on Wednes-
the supply of credit was so short that the
market had to 60 to the bank and dis
count October bills at 8 l-2 per cent to
raise little money on short loans at 4
IL. This was rather a staggerer and ac-
cordingy brokers made haste TO work
with liz to IS. the rates they had
before been quoting and cutting.
Short loans in the open market. however,
were still procurahle ordinarily at 81
to per cent. While it. is possible some
body will usually take bills below the
published rates at the bank of England.
the opinion now is that its rate may go
/ to per cent next week. but much de-
ponds on foreign exchange, especially on
Z
gold from London this autumn, the con
sequence might easily he a nasty crisis,
partly here and especially on the contin-
ent.
/ If the French wheat crop Is at all short
this year, necessltatlng increased i'm
portation, the monetary difficulties in
Paris are almost sure to reach an acute
stage. Al 1t is, speculation on the
bourse is paralyzed, and the official brok-
ers are openly accused of maneuvering
to depress rentes against the government.
The accusation has not been proved, but
the fact that it has been made reveals the
atmosphere of suspicion in which the
French people exist. But the bourse and
the people are smothered in financial COM
mitments from which there can be no
immediate deliverance. The deadlock
continues to exist in minor degree here
as we'll as in France and Germany, so
that time and gold alone can permit us
all to escape without intolerable sacri-
fees.
Our stock market is quite paralyzed in
many departments The efforts daily
made to engage us in new speculation
in your railway stocks are so far an utter
failure. Last week l again made 1t my
business to inquire around the city among
investment brokers whether their clients
had begun TO buy.
Certainly not" was the invariable an
swer and some added: 1--WE are still sell
ing and we have orders on orders on oui
books to sell Pennsylvania, Norfolk
Northern Pacific and Baltimore.
A fringe of gamblers is no doubt punt
! ing in and out but solid markets are never
thus established The truth Is that until
! fears about money are ended, until th'
more excessive commitments specula-
ton in industrial mining securities are
worked off, means to take the American
market in hand will not be available.
| And the industrial activity every weet
demands more currency, to the danger o
autumn demands upon our gold from man!
n quarters. and II Is not difficult to under
stand the lethargy that has fallen upon us
This week the Bank OF England received
sAi, 900 pounds in gold from abroad ahC
SOC. 900 pounds OF It has gone into circula
ton. Usually large sums do go Into cir
culation at this time OF the year, but the!
come back again soon. This year so IA
nothing has come back, and people sa,
1 that il is because Joint stock banks besli
boarding gold on their own account IN
stead of leaning wholly on the Bank o
England stock There is not much truti
\ behind this assertion for II is trade which
requires the cash However. look for {
| stiff uncertain and choppy money mnrke
I all the rest OF the year. For the curren
month the chaiises may not be create
than have Indicated. but changes are 81
uncertain that small accident might up
set all our calculations.
i And we IRE not by any means clear o
the danger OF South African var. whlci
would temporarily shut OF the Rand goh
supply. On the other hand. the new DE
cree ordering a gold STANDARD .or Ina a
seems a kind OF owlish joke, since lndi
10 unaole to collect gold save by borrow
ing.