Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-01-16
THE LONDON
MARKETS
A Rapid Change in the Money
Situation.
ARE CHEAPENED
Fears That Gold Will Be Exported to
the United States in Large
Quantities.
ARE CHEAPENEI
New York, TAM. ia dispatch to the

New York, Jan. ia dispatch to the
Times from London says:
"a rapid transformation has taken
place in the sentiment in our money
market this past week. We began it in
trepidatiOn lest you should take away
too much of our gold, for there were Or
ders in our market for New York ac-
count, so bill broker said, and in fear
of this they tried to screw the discount
rate up to PA per cent. The Paris rate
of exchange, too, was dipping ominously
near the gold exporting point, and We
could not be at all sure but that Berlin
might still develop a crisis Of it's own.
All time loans from day to day and from
week to week were growing cheaper and
cheaper, until the banks had to accept
~ per cent for seven-day money.
This struggle between money rates
and discount rates lasted until Thurs
day morning, when improved exchange
quotations., both on your side and on
the continent, weakened the bill market
sven before the Bank of England returns
appeared. After that came out there
was an endeavor to maintain the dis
count. The Bank of England is not rich
by any means, but it's market balances
were shown by the return to be $4,000, 900
larger than the week before, a sum quite
sufficient, other changes being favorable,
to induce ease in loan rates at least.
And discount invariably follows money
down when immediate prospects do not
forbid. We end the week, then, with
bill rates falling rapidly toward 2 per
cent, with money 1 to ~ per cent, with
gold passing into the bank instead of
leaving it, and with the prospect thus
established that the bank rate next
Thursday would be lowered to at least
3h and probably 8 per cent.
For the bank to resist the current is
useless, because at least a month must
pass before the ~ingathering of revenue
places us in a position once more to die
tate to the open market. On this basis
cheap money is destined to endure for
some weeks. Politics on the continent
apart, therefore, look for considerable
development in the stock exchange specu-
lation. Thus far the market activity has
been rather Of a frothy description. We
nave had an immense amount of noise,
not only in the department of stock de-
voted to American securities, but also
elsewhere. l find, however, that the most
important class Of stock brokers and
also dealers in the stock exchange have
not been doing much, investors holding
aloof, or come to the market to sell.
THE impression in Throckmorton
street up to now is that Wall street has
been going too fast. The tired-out hold
ers of Atchison, Reading, Erie, Northern
Pacific and similar cases of stocks kept
selling as you drove prices up, and they
have not yet put their money back into
other American railroad securities of the
better class. Buying goes on, undoubt-
edly, but it is mainly the buying of the
curbstone hunter, who is in one moment
Of the day and out the next. For this
reason the great upward movement on
your SIDE has, up to the present, had nc
other consequence than to keep up oul
exports of your securities"