Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-07-10
In London Has Been TOpSy-
TurvyiSh Lately.
RATES WORKING DOWN
Increase in Financial Business Shown
by Clearing House Figures--lndia
Will Have a Gold Standard in the
Near Future.

e - N July W AhN Ao'H
don financial correspondent cables: Our
money market has been a little topsy-
turvyish this week. The bill brokers
were working the rates down below =
per cent, with full belief that money
will be cheap. 1t has not fallen as eN-
pected. On the contrary. 1t has been
scarce and dear. Instead of paying back
all the loans due the Bank of England
the market has had to renew a portion
and the bank charged 31a and for the last
two days 4 per cent for three and four
days advances. Then the two biggest
banks tina usually hold from s.. 1000. 900 to
S25,O 900, 900 in bills between them have been
holding off the market. Either they
would not buy at all or they refused to
take the bills at less than pa per cent.
The bankers. therefore, We're thrown back
on floating credits in the market. for
which often . and sometimes q. and 5
per cent has been charged. Even so. the
, Bank of England has been master of the
position. Perhaps greater ease will come
, next week, but in any case extreme
~cheapnesS is not possible.
We are doing an enormous trade and a
still more enormous financial business.
as the returns of the bankers clearing
house of the past week prove. They
show an increase of E5S. OGO on last years
total for the same week and at G253 423,-
OOOrepresent the highest weeks total ever
known. Throughout the provinces it is
I just the same. The ountr banks found
local employment for their money and
can spare less for London. Gold is still
going to Scotland instead of coming
back, as it usually does at this period of
the year. The foreign banks. too. loan
more and more on London account, the
universal cry, o the continent there is
not enough money to go around. and tine
bank Of Amsterdam has twice put up it's
rate within three weeks. Paris has got
through the Bourse settlement without a
big smash. but the market has been Grip
pied and sulky ever since, it's condition
being such that the greatest caution is
necessary. Were a Boer war to arise,
upsetting the Kaffir share market. I am
afraid to think what the consequence
might be. Both in Paris and here, per-
haps, knowledge of the danger is the
greatest safeguard against war. .
India is to have a gold standard. Such
is the probable decision of the committee
now sitting. This means that ego, 900. 900
in gold must be collected to form a basis
of the gold reserve. Money must be Dor
rowed, and doubtless could be with COM
parative ease, but the effect of this rti-
fetal demand for the metal must be i'm
portant on the rates Of discount every
where and not least here. The bank,
perhaps, is keeping a hand on the market
in anticipation, and it is quite right to do
so in any case, with the home credit de-
mands so great and as affairs are shap-
ing abroad.
The new Mexican conversion loan is
grunted at by many. mo catch in it
shall take my money old stakers say.
Nevertheless. the prospect is good for
Mexico, and not bad for the investors,
especially if G5, 900, 900 of the new stock is
already sold in New York. That will
give Americans an interest in the govern
ment of the country, perhaps, to prevent
trouble when Diazs reign is over. Our
great fear is lest the Mexican bonds
should merely represent "Diaz's life an
nuity." But, meanwhile, one big stock
dealt in on a half dozen markets is bet
ter than a bundle of small ones, mostly
held by German banks and financiers.
and for this reason the conversion is
likely to be a success.
Copper is admirably manipulated. and
the ring has every appearance of being
able to keep a hold on the market for
many months. Iron is also rising and
~shipyards are feverishly busy.