Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-09-25
FINANCES GET
A BAD SETBACK.
Business in England is Suffering
from Military Dementia,
DANGER OF A CRISIS SOON.
uridsh-noer ftusine.. ,Iust be scttied
one way or the Oiher canso
OF the Trouble.

Now York. Sept. 2i.-Thc Times Lone
don hnlrcinl Correspondent cables: We
ar suffering from an acute aparm OF
military dUmcutia. o. dl.olsc 10 which
lnulcrn empires foNm peculiarly liable.
The consequence On TINT financial but.
ness OF nll kinds la SUFFERING from "A
bad 80 back. Whereas during the urHt
hcNcn months oi thf year % " Joint n G IS
undertakings were poured on mo mar
kgt every wCuk in rUofcH. now none ut
all appear of the slightest importance.
Probably their nhHouc. d. but SLIGHT
iul fortune. Tor they nfo mUHtlv Jerry
built. lkl London h0uacf. bat Stock cE.
change business iH just us bad
Not since The month. fn.luNlng the
cflalf Df isn1 has th.r hccl ruch rtAN-
nation uH now exists bll over our mar
Ret The public Hlmpiy raiu.sf g. deal,
uud what iha luhhNr and bankers Dee
cupY ihnir time with d. trying tu SHIFT
cnch hiH load on unuthrrf back. To- Tho
pugosa. priCeH dwludlt. AMI we nro lu
danEur OF o. crisis from hamilton un-
lraH the cloud litts Boon To short. until
this wrytchcd wrungic with the uoar b.
settled one way ur another our public
cannot oven be persuaded tn buy Amer
lean railroad stocks.
int. politics apart the English stock
cNchanHu would not have much heart
ior buying az present. Money huthuu
as because II threatens 30 become dear
pr than We Ike Europe do0n not
frightcu uH much because no great state
there has the power tn abstract largo
amounts ~ gold. but you do bother MS
most decidedly We know that you are
able 10 take whatever amount ~ sold
you require and should New York de-
mand arise c0inCideutaily With ship
monr uf HoyeroiHuH 10 tho Cape. and "a
Htoppugc, partial or complete. Of the
lthhi'H mnWhly supply our losa would
De- considerable, 40 matters stand,
many bankers now urgc an advance 10
the bank rate tu four per cont forthwith
because the market rates are above the
present premium. In fact some dis.
count houses arr now disposed 10 ask
3ai per cont ON three months paper. and
bankers prefer 60 lend their balances ne
~ pcr cent for % week rather thnn buy
bills az ah per cent The actual mar
kot discount rate yrHtcrdny wa barely
3h per cent. but the Hank NJ England
was doing most OF tho business
There II nothing very terrible ln AN
this 70 may be said, ana that III true
enough IN one sense. Consider. how
over. the position NJ our stock exchange.
II worked prices ny during the lung
years OF per cent money until the
great bulk " the bcHt classes ~ our
securities could not De- bought 10 pay
per cent. Scarcely any among the CON-
mon stock Of our great railroad CONF
pnnioH Yield today go pr cent 10 tho
Investment buyer LIT money. then
rule Tor many months at or per c,nt.
ns 4 hna dolv lately. and great pressure
20 llquldnte. with the Inevitable nccom-
paulment u lower prices must cnsuo
Hut lower prices means exhausted
bankers mnrHinF. ana much mischief
In many directions. No wonder, there
fore. that our market II very nervous
and disposed 60 cNngEcrtie dangers
ahead.
From one point ~ virw the Hank N
England looks much stronger now than
Then We thought ourselves shielded
from every form II adversely when tho
banking reserve stood M high az ci5-
0OO. 900. Today Il II almost ct00O0. 900
above than ancient safety figure.
The risks 81 international banking
cuisines force ~ Co look more Cufc-
fully nt our bullion reserves ana the
more we look tho leHs g. our position
r0llshcd We possess only about EN.-
600 900 In gold In excess NJ the amount
In Bank ~ England notes 10 tho hands
Of tho Public. and cii 900 600 out ~
C23 000.0oO notes held IN reserve N mere
paper Issued upon government securities
partly government debt some two cen
turtles old We might easily lose fN.-
600 900 Of gold IN the next few months
under the conditions described. and then
the cnuycrtlbllity NJ bank notes begins
70 be IN danger. In Hclf protection, our
lnrls Joint stock banks would cndenvor
To exchange the notes now held by them
for gold coin. thereby nFrrnyutlnH tho
trouble until our credit system might
be threatened with deadlock.