The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-01-09
AFRAID OF NEW YORK.
London Money Changers Tremble
When She Sneezes

New York. Jan-9-A J. Wilson. finan-
ciaI editor of the London Daily Stand
ard. cables to the Times from London:
Business on the London stock ex-
change last week did not keep its first
promise
Our bankers are uneasy about the
future OF she money market because the
Bank OF England Is not gaining gold
They fear, therefore, advance rather
than decline in the banks discount rate
do not however, share this fear and
think Improvement is probable soon
But matters were complicated last
week by considerable selling from Ans
terdam and by the closing out of large
account in Paris, which seems to have
been open for many months. These
events kept prices heavy and prompted
some OF our SPECTATORS to sell for a
fall The consequence will be that in
all probability our fortnightIy settle
ment this week will be easier than
many suppose. Short loans are plenti-
full and will be at least one-half of one
per cent cheaper than they were at the
end of the year. This will give mar
kets heart and must produce favorable
reaction.
still the business done IN American
railroad securities is not yet on
broad basis with US. The stock ex-
change has acquired important hold
ingS but the public at large continues
either to hold wholly aIoof or to sell
Really strong and progressive mar
kets are not to be counted upon until
this condition is changed. And it will
not be changed until we are more easy
in mind about the immediate future OF
our money market. 1t is known that
orders for gold are in the London mar
ket for shipment to America as well as
for Germany; and if these orders should
result in heavy Withdrawals from the
Bank of England instead Of advances
in security values we shall have more
or less sharp reactions with further
pressure of sales from this side on the
New York stock exchange
ElTfF hal e 2
and doing in the public mind which
must develop into extensive dealings AZ
you do not frighten U.s.
The worst of the situation Is that
German monetary stringeucy is not yet
nearly at an end. Discount rates have
gone up there since the new year opened
and exchange has gone somewhat
against US
This is by no means New York alone
that we fear. although the continent
never scares US as New York can
Our board of trade statistics for the
completed year just published show that
the United States took rather less gold
from US last year than did Germany
eleven millions sterling, as against near
" twelve and half millions Usually
it is the other way and your trade bal
anceS are SO enormously against Europe
at present that were you to stop buying
securities and take gold to Hquidate
them you could upset our market COM
pIeteIy
CAUTIOUSLY enough our commercial
balances are just as apparently adverse
as yours are favOra BILE Our imports of
merchandise were nearly III, COG. 600
pounds in excess of our exports COM
biued last year-an unusually high
tOtal-Which places US at a great dis
advantage for the moment in spite of
our enormous income from capital in
vestment abroad, the income of which
calculate to be worth quite 100, 000, 600
pounds a year to US on an average.
All this goes to show that the i'm
mediate future of our money market is
not by any means without clouds. But
we shall come out all right and forge
ahead directly we are relieved from
those fears OF dearer money which now
are prevalent among the more thought
full Of our bankers and dealers in
credit