The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-07-24
WORLD WANTS. HONEY,
And There Is Not Enough to Go
Around.

New York, July 24.-The London
financial correspondent Of the Times
cables:
The cloud has lifted from the money
market as swiftly as 1t arose. ON wed
neSday an easier tendency nrSt peSdn
to display itself and dealers with credlt
began to think that the bank rate need
not necessarily be changed. No change
was made, and the weekly bank state
ment indicated that the absorption OF
gold and notes into circulation mad
paused, if not come to an end. More
important still, the figures proved the
stringency to be artificial and the pro
duct of the banks own action. To make
money scarce in the open market 1t has
borrowed more than it lent. Instantly
the market felt at ease with itself
again and rate cutting was suspended.
Early in the week the bill brokers
stood out against the market and re
fused to buy bills under 5-8 percent.
On Thursday they did a small business
at 31a per cent, occasionally less and
yesterday the rate was about "a per
cent and threatens to go below per
cent this week. At the same time money
has fallen to and 212 per cent IheSe
weddings are unpleasant and every
body is inquiring why the bank was
seized with such alarm producing en-
ergy. TIL explanation is simple enough.
Had the bank not acted as it has done,
gold would have been exported and we
should have been a 5 per cent rate
established before we could get it back
dS dill Oy COInGTAHB the IldIhel at once
the bank forced rates up, turned ex-
changes in our favor and drew gold
from the continent. So potent has been
its influence that the bank of AmSter-
dam has been obliged by swift success
sive steps to raise its rate from 21a to
Az per cent IN order to protect its bull
lion. Trouble has perhaps been only
postponed, because the situation on the
continent is still precarious, but domes-
tically all seems trim and stable
A secondary cause of the banks ac-
ton is to be found in the evil reports
which have been circulating about the
stability of the Birkbeck building so
ciety. In the course of years this in
StttutiOn has developed a large business
as a deposit bank and now holds about
&10000,0C0 of money all repayable on
demand. besides a million sunk in
bricks and mortar By allowing too lib
eral interests to depOsitOrs its manage
ment has been driven to invest in many
securities of a speculative character.
To relieve it of some of these it years
ago created two trusts, each with $780,
900 capital, but this was not enough and
a fortnight ago a run began, threaten
ing to pull it down. Happily the Birk-
beck possesses some millions of good
securities and was able to find means
to pay. The danger, therefore, is now
over. but reorganization must follow.
Had this concern stopped payment the
consequences must have been most la
mentable for deposit making banks in
general and for thousands of humble
persons. The Bank of England there
fore, did well to act energeticaly to
bring in gold. Abroad affairs have not
appreciabIy mended. The Paris bourse
is OVedlOaded and lethargic. Berlin
and Frankfort are in the same condi-
ton and stringency with ugly suspen-
sions is still dreaded for the autumn.
Perhaps the fear will work it's remedy
without crisis but the situation is
precariOus.
In Norway the great wood pulp in
dUstry is paralyzed by the Christopher
son failure, his liabilities being nearly
$500, 600, with assets doubtful, as his
business was kept floating by accom-
mediation bills. Spain falls from bad to
worse RetrenchmentS cannot be en-
forced by its feeble government and the
people are determined to refuse the
payment of the new taxes. The ROu-
manian harvest is a disastrous failure
but the Russian shortage is declared
less than earlier estimates.
Still, all the world wants money and 3
parts of it cannot get more. Our own
mOneyed classes and sDeculatiOns are
terribly locked up and are consequently
unable at present to operate freely even
in American rails whose bright pros
poets are now daily set before them in
glowing cOIors. AS for copper shares,
the public interest in the gamble is at
zero.
The appointment of Clinton Dawkins
to be senior London partner Of the Nor
gans is generally approved here. His
career beats romance, but all say his
success is eminently deserved.