Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-07-17
Was the Financial Market
In London Last Week.
A VARIETY OF CAUSES
That Led up to This C0nditiOn-Bank
of England Still Has Control OF
All OperatiOns-The Movement of
Gold.

New York, July 1.-THE Times Lon
don financial correspondent cables: This
has been a week of furry IN The money
market. All anticipations of ease have
| been completely falsitied ana discount
houses nave been badly caught. Instead
of the market escaping from the grasp OF
the Bank of England, it continues 50 de-
PENDENT that the Lark for the last few
days has done nearly Ri the nc dis
tGuns business. Other credit establish
nents being half paralvzed by fright. No
appreciable calming effect has yet been
produced by the advance in she rate tn
81 per cent. for the Bank of England is
not only discounting that figure, but still
lending small amounts at AZ per cant.
A variety of causes have been at work.
Political fears e~ngenlercl by the Trans
vaal dispute induce caution, but that.
though, has been Checked, thu L source
of the existing pressure, for such fears
usually tend to make money easy. If peo-
pie are not inclined to use credit, credit
cannot become dear unless holders lock
it up, which they have not yet begun to
do. Credit is really more in demand and
more employed than ever because inter-
nal trade is so active. 1t is otherwise with
domestic business, thanks to the enol-
nous outlay of the government on war
like preparations, especially ironclads.
All the dock yards are excessively busy,
and all armor plate works, all blast FUR
naces and all engine shops accordingly.
The result has been an unprecedented de-
mand for currency with which to pay
wages and for banking credit in every
branch of the business.
Nothing proves this better than the
fact that sOvereigns are still being dis
patched to Scotland instead of coming to
the bank. More than the amount of the
new gold bought by the Bank of Eng
land is passing intO circulation in this and
other directions. The consequence is that
the London credit market is usually
pinched for means at the when
the demand upon it is much in excess of
previous experience. Then also, we be-
to suffer from the effect Of the reck-
less extravaganza of the past few years,
and several minor and one important in
%stitution this week have been whispered
against. for no discovered reason.
Our commitments in support Of the
German bankers are still enormous and
will Chicago please note that Germany is
no nearer quiet times than before. Each
stock exchange settlement that comes
round furthermore reveals greater depths
Of involvment in unplaced loans, new
company capital issues and general finan-
cial and spare-rigging commitments The
sight Of this condition of affairs induces
the more obseryant bankers to exercise
caution and quietly accumulate a little
cash against contingencies, thereby in
creasing the strain on the Bank of En-
gland supply. At all points, therefore.
the market is being pulled upon and it
would not be surprising to see the bank
rate 4 per cent next week. The discount
houses are quoting 35s to 3s per cent
There would be nothing deadly in tina
We're our market alone rather hard up
but it might be productive of consider
able mischief from the mere fact that al
markets are alike incapable of rendering
each other assistance. 1t is strange that
in spite of the enormous production o.
metal, the scramble between the mar
ketS for it should threaten to become ST
intense in the coming autumn as to upse
the coachsOme view. Several small dis
count firms contracted last months bill
for July and one house at least contraete.
to buy Indian bank bills arriving al
through July at IT'S. Heavy loss is in
evitable from this sort of trading. Then
also, more than one bad squall has al
ready happened on the continent b,
which our market has been hit.