The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-05-29
SPAIN is RANKRUPTs
Scheme of Reputation is Already in
Operation.

New York, May za-The Times Lon
don financial correspondent cables:
Paris has at last betrayed symptoms
OF tiredness. The French are marvel
Gus people, the most painfully thrifty
in the world, but even they cannot find
the means for all the follies to which
they are invited to subscribe. Early
last week some of their Industrial paper
structures began to crumple, and sud-
denly the bourse found itself overload
ed in many directions. 1t has been
sulky ever since, and twice during the
week it looked almost disposed to aban-
don Spanish investments.
Poor old Spain seems about to throw
up the sponge and apologetically repu-
diate. No one expected any govern
ment there to admit bankruptcy square
ly; your Spaniard has far too much dig
nifty to do anything of the sort. But
an indirect admission does just as well,
so the next debt coupon is not to be
paid until the cortes votes the new
budget with fresh taxes, which is not
job of lightning express order. Worse
still, in some respects, the government
has ViciouSly kicked the Bank of Spain
so that it may die of ill-usage. Spain
has no commerce to speak of except
what foreigners conduct. The Bank
of Spain has therefore levied on the
government by the simple process of
making 1T advances as required out of
increased issue notes. The security
given consisted of Cuban bonds, treas
ury notes and per cent redeemable
government bonds. The interest on the
Cuban bonds has been frankly suspend
ed. that on all the other debt has been
postponed, and-harder treatment than
that, if possible-the redemption draw
ingS on redeemable bonds have been
stopped. The result is that the bank
is stranded high and dry, with assets
of perhaps $4,000, 900 pounds, represented
merely by government promises to pay
The only consolation is that the repu-
diation was done with high Spanish
dignity. The government had no more
use for the bank because it could get
out no more notes, therefore it is left
lying like spent mule.
The turn of the French bank comes
next. They hold nearly the whole of
the Spanish external debt and some
Cuban bonds. and have made splendid
profits out of the business in the past,
especially out of venturesome bears.
Both England and the United States
paid them heavy fines for rash sales
on the outbreak of the war last year.
We certainly did. and for many years
past British bears have been periodi-
cally trapped and sheared by these skill
full French financiers. They can there
fore afford to lose a few millions and
still have enough left for soup mai
gre" But lose them they must, be-
cause their very success in the past
leaves them with all the bonds and no
market to sell upon. The Paris bourse
is consequently pretty certain to be
limp and wobbly for some time, if it
does not actually collapse.
Floating through the city is the word
plague, in Egypt, in Hong Kong. at
Marseilles, and down go prices. Kru-
gers burghers grunt no" to the old
mans request that they should end the
bother over the franchise, and Kaffirs
crumble till five pounds for Rhodes
chartered shares seems further away
than Gar Nicholas millennium And
then this very Russian, who has shed
his claws at The Hague-is ne not max
ing another grab at China, and is not
the weather too cold, crops late and
stunted, stock exchange pay day at
hand and the money market hardening?
There is no need to go on.
As regards the money market, the
most potent influence of all, there are
uncomfortable forebodings, but for later
in the year and not for next week 1t
will be a hard week because stock ex-
change pay day and bank balance sheet
window dressing day are the same, but
the Bank of England will supply all
kangaroo shares will have to pay from
Is to 80 per cent.
The Japanese loan is out and is coldly
received by the market, because there
not fat on it, it says. 1t has been all
taken, though, and will slowly be mop
ped up by investors. Feelers about the
Russian loan are meeting with scant
encouragement The Jews are against
1t almost to a man, yet a Jewish house
will issue a loan for 5000, 900 pounds al
most at once.
New copper companies are being
Matched so fast that your vaulting mon
opolists may soon begin to think that
ing vexatiously multiplied by seeding.
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