The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-12-11
HnNGRY FOR GOLD.
Bank of England Is Trying Hard to
Increase Its Holdings.


New York. Dec. 1.-THE Times Lon
don financial correspondent cables:
Nervousness and anxiety increase in
our money market because it begins to
see how difficult 1T is for any other
market to supply its necessities in the
matter of gold Exchanges have re-
spOnded in the usual manner to our
per cent bank but as they move in
our favor steps are taken by the mar
kets threatened to prevent loss of bull
lion. The Bank of France wished to
advance the rate to per cent on Thurs
day, but the government pleaded for
half measure, which does no good. So
the regents fall back on the gold prem
ium or on refusals to sell bullion at
any price, and only the imminent dan
ger of a panic here would induce them
TO change their tactics.
At the moment it looks as if your
market might be obliged to come to
our assistance by sending gold, but di-
rectIy. exports began. difficulties would
assail you likewise. Our market is at
random about borrowing gold here and
there, as in the Barring difficulties.
Then. however, credit was much less
irrevocably committed beyond its
strength on all markets than now and,
where all must be borrowers, none can
lend.
Specifically the strength of the state
banks of Europe appears greater now
than a year ago. France. Germany,
Spain, Austria and Italy all show more
gold on hand now than then. But I'M
fortunately every one of them also
shows heavier commitments, and the
rapid and severe advance in the Bank
of England rate this autumn has caught
them all unprepared to support or cover
their excessive commitments from their
own resources alone.
The prOximate consequence of the i'm
passe thus confronting all markets will
probably be an advance in the Bank of
England rate TO per cent, and there
is betting on the stock exchange in IA
vor of an early move of this kind at
to l. ] hardly expect the advance to
come this year, but this week the bank
viii probably charge per cent for
short loans, and viii certainly do so
should the demand attain great proper
lions. And our 6 per cent rate has thus
far only attracted about 100000 in
French gold coin from the open mar
ket of Paris.
Despite all prospects of trouble in
the near future, the discount market
till last Friday leaned toward weak
ness, and at one time three months
bankers acceptances We're bought at
slightly under 51a per cent discount
The fact is the average handler of
credit tends to become a mere machine.
incapable of accurate perceptions of
the drift of events shaping himself be
hind the routine in which he lives. All
last week clear sighted bankers were
struggling against the weakened as
pect of the market, and Saturday found
their thOughtless competitors more
eager after a high rate they were them
selves.
The fine rate now is So per cent but
it is doubtful if much business could be
done in discounts under the bank rate
and the leading houses are indispOsed
to take long paper at any terms. And
wonder, for the bank. thanks to the
sales of its cOnsOls and the diminutiOn
in its bill case, is completely in control
of the market. This is the most re-
assuring fact about the situation. If
gold can be obtained from abroad by
high interest, the bank means to have
Inevitably a strained position cfushes
stock exchange business, and all last
week the poor fellows in the markets
tried to keep their spirits up by amuse-
ments. But for 1arking and jokes,
some of US would soon go mad is the
remark one often heard stock brokers
make in times like these. All thoughts
mencing today, and fears of trouble in
more than one quarter are entertained.
Except in the Westratian section there
is not much to be afraid of, because the
wide indefinite public are losers not the
market, in most other directions. Losses !
that are spread thin make much mis-
cry unseen, but seldom a great noise
or big explosion In the Westratian
group however, the manipulated gam
bic of old standing shows signs of
breaking down, and / should not be sur
prised to see bad failures there furnish |
ing plenty of raw material for moral !
lists.
AS weeks pass the strain of dear
money is sure to bring to light other
weaknesses on a larger scale. For ex-
ample, the Glasgow corporation is
kept going by the help of accommoda- |
tiOn bills discounted at per cent and
New South Wales demanding $4,000 600 !
on bills, half for the renewal of the old !
floating debt. half for a new. It can |
not get money under per cent and for
the next three weeks might touch lit |
tie at that. From these samples judge
the lot, and multiply by the known |
commitments and necessities of the civ !
ilized world, buy charging its produc- |
ing powers, and the cost of the South |
African war, now estimated at ESQ OO0.- !
600 and then judge the courage required |
to be cheerfully confident of money at
per cent again before three months |
are over. 1t is the multitude of urgent |
and hungry borrowers of the types just |
named that are going to give our banks |