The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-01-30
LONDON is WARY.
Spectators Are Still Reluctant to
Trust Our Boom.

New York, Jan. 30.-A dispatch to the
Times from its London financial cores
pondent says:
our market has been rattle dispirited
the last week over the fact that the
bank rate did not come down to 8 per
cent on Thursday. The figures in return
would have allowed it, but the move
must come this week, although the bank
is losing rather than receiving gold
from abroad. Last year you intercept
ed nearly all the usual Australian sup
ply, taking about $780, 900 pounds from
Sydney alone and there is still de-
mand here for the metal for both Ber-
lin and New York account. The in
flow of revenue, however, will now help
the bank and ia, 900 in coin came back
from active circulation last week. Ad-
ding the notes returned, the reserve has
risen $4,000 pounds and the more 1T
grows this way the greater power will
the bank have over the market But
to get this power the rate must be low
cred. The effect of a material figure,
such as 3h per cent is depressing the
open market which works down and
it. So money now is less than L per
cent on call and it is a struggle to keep
the discount above per cent.
Business is none the less prosperous
and expanding, the last half year being
a fiOuriShing one in our banks, all of
which have made excellent profits. The
balance carried forward in Paris, for in
stance, is over 60 900 pounds after pay
rector said to me- just about the amount
stolen. This theft has been the sensa-
ton of the week, the thief undoubtedly
was one of the banks employees, who
unable to cash the notes, has already
sent two-thirds of them back. The rest
will probably come back or be destroy
ed.
The stock market is rampant, but the
business done in your railroad securi-
ties still shows a great preponderance
of sales by the old-time holders and our
gamblers are bestowing more attention
on KaffirS than on American rails. The
attraction of the latter, however, will in
crease as prices advance, therefore spec
ulation in them is developing fast
But 1 would not advise you to trust
to being able to unload again soon here
what you have bought with such vigOr.
The moment you attempt to do so our
market will fall to pieces because there
is not the stamina investment buying
alone can give. Bankers tell me that
loans on American stocks are not in
creasing. The money lent on your
stocks is carried on the weeks stock
average of less than Az per cent; let
the average rate advance to 61A per
cent and we should all be sellers.
As the market is soaring the quota
Northern Pacific and such shares are
tempting people here to sell short. 1t is
expected here that you will make them
pay for this, and the more they sell the
better for the market Triggers.
Copper is going at 80 pounds to those
in the swim here, and I predict, ergo,
that copper shares have still a long way
to mount. The market for them, all
the same, is manipulated from the in
side, and decoy shares. like Rio Tinto,
are little dealt in by the public. Stock
exchange jobbers are nervous touching
them. They have no mass of shares to
handle and are always being caught.
This applies much of the business done
in the Kaffir circus as we'll.
In short, caution, with reduced rather
than increased commitments, is what
the general position of the London mar
ket incu1cates. The continental markets
are better, thanks to your money, but
Paris is heavy, owing to the end of the
month settlement. Berlin is also not
buoyant, but your bankers have helped
both France and Germany to easy
money,