Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-02-13
The FINANCES
IN ENGLAND
Weekly Letter on the Situation
Sent Out.
THE AMERICAN SECURITIES
Are in Fair Demand--GOld Exports
Are Not Causing the Worry They
Did Some Time Ago.
THE AMERICAN SECURITIES
New York, Feb. 13.-The Times london

New York, Feb. 13.-The Times london
financial correspondent says:
"Superficially, our money market seems
in an anomalous position. All the week,
until Thursday, loans were Offering at
from - to l per cent, and at the same
time discount houses strOve to keep the
rate of bank bills as near as possible
to 2 per cent. In this effort the banks
helped them by refusing to buy bills for
them at less than Us per cent rather than
work for less, they were ready to lend at
l per cent for the week. Why was this?
Because, while the money market had
two fears before it's eyes, it feared an
! other squeeze at Fridays stock exchange
settlement similar to the one of a fort
night back, a fear justified by the event
for the pressure was tremendous be-
cause the stock clearing houses broke
down. 1t also always breads the effect
of the revenue collections a little later
in the quarter. But the result of any
apprehension Of dearness to come always
makes the holders of banking credits
reluctant to part with them for more
than a few days, and therefore the pres
ent condition of our market seems to
encourage the expectation that the pres
emit low rates will soon give place to
higher ones.
Il am by no means sure of this, and
lean rather to the opinion that cheapness
must last for some time unless the calm
is destroyed by unforeseen causes. The
government deposits in the Bank of Eng
land are still "a, loco, 900 below the total of
a year ago, and are little likely to reach
last years figures at any time between
now and April. And next week we
should receive several millions from you
in payment for the stocks you imported
a week back. So for the market your
market will be simply gorged with cred
it's. Even the gold movements cease to
interest US when such an abundance pre-
I. VIC ll hl1t los Won want If WE h. /
[ possibly retain a part at least OF these
! imports of metals for the next few weeks
We only get the Africa supply, it is true
as India and yourselves are taking the
Australian output; but a little goes q
long way in soothing us in our present
!, mood. This mood is one of increasing
! ~hopefulness, leading to more vlgorou:
speculation.
-, Our trade returns in January indicate
= that business is waking up IN the ia.
( east, and to some extent with our pos
: sessions. Even continental nations ar
I displaying larger buying power and jus
4 as will happen with you the millions dis
: bursting to the iron manufacturer by tn
t admiralty fill the land with a sense o
prosperity to the banks with their depos
d its seeking employment.
Il have been asking the stock broker
S whether their clients are pressing then
for American securities. The answer !
still the same, that Kaffirs are predomi
mating. But speculation, yet very mOu
:, est, is steadily swelling by the small
Il orders. 1t Will be a month or two be
= fore the daring mood that permits o
{ free speculation on a larger scale be
: comes dominant. Should this mood seiz
S us, then l fancy that We will begin agail
e to buy back many of the shares am
IS bonds we sold you. l come across n
8 bear to speak of, but bulls only o.
# your rails. in a small way, are very nu
merous. We have done little during til
last fortnight because you let prices dow
and because we feared dearer money d
settlement.
But just you set the ball rolling agai
and see if we dc not follow your lea(
:, The gamblers alone will buy first, an
therefore a moderate slump must alter
~ nate with each advance. But the specu
lative investor will succeed the gamble
4, and the gentleman Who buys Fries to la
.. aside for his children will come pOundin
back, pounding in last of all.
"There cannot be a silver lining withot
~ a cloud. Our present cloud is the threat
) ened strike of the cotton operatives. Tt
II men seem determined, and as the trac
10 has been profitable lately, | should NJ
be surprised if the masters give wa,
re They have no stocks on hand to fall bac
If upon, and will hardly decide to shl
lie down in the face of profitable order
d, BUT at his moment the two sides al
)r squaring UP at each other as if the
meant to fight it out"
l