The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-11-13
TIGHT MONEY.
London and New York Affected by
the Same Ailment

New York, Nov. 13.-The Times Lon
don financial correspondent cables:
Once more all over Europe there is
passing wave of dearer money. a
fortnight ago discount in Germany was
little better than per cent; Saturday
it was 81 and further advance in the
bank rate is by no means improbable.
In Paris money fell away after the
bOurse settlement, and even in the open
market 3 per cent is now quoted, but
business can not be done at this figure
to an appreciate extent, and French
bankers are calling funds home. With
US the week just ended has seen a rapid
advance in discount from Az per cent
upward and it is doubtful whether
much recOi is to be expected.
All sorts of demands are pressing
upon US, not the least from our mu-
inequalities, habituated to spend from
twelve to fifteen millions yearly with
borrowed money. On Friday 5000, 600
of government treasury bills was sold,
mainly IN the open market, at an aver
age of slightly under 4 per cent for six
months and slightly over 81 per cent
for the yearlingS, the highest rates paid
in many years. These bills must be
paid for on Wednesday, which is also
stock exchange pay day, so a sharp
squeeze is looked for although the Jap
aneSe government took a portion of the
issue 1t by no means follows that the
tightness will continue, because the
governments owe all the money and
must Immediately pay it out again. The
French nave been heavy sellers OF Sc
curitieS, principally mines, in the last
fortnight, and may draw money away,
so prOIOngfng the stringency. Only gold
Withdrawals in New Y Ork are likely to
prevent our market from slipping back.
But real ease is impossible because Of
domestic conditions. We are less
afraid at the moment of gold demands
from the continent and the story about
India ear-marld1g gold in the Bank of
England, is absurd. India is much more
likely to require a loan to enable it to
cope with the disastrous famine now
raging there. Stray dTibletS of SOW
ereigns are sure to leave US, and the
government will soon be obliged to send
more to the Cape, but New York is the
true present source of our apprehension.
We fear not only Withdrawals of our
slender stock, but the interceptiOn of
our Australian supply, now more than
ever necessary since we lost that from
South Africa Therefore our dealers
, in banking credit watch your market
anxiOusly, and will only feel relieved
when they see your banks becoming
stronger through the return of currency
I in the interior Two millions taken
from our stock by you would almost
certainly force a six per cent rate from
US, and after that the deluge.
But there is no trace of this dread
in the stock markets. The gamble there
| last week was very wild Dealings CEN
tered mainly in the African market
and at times the excitement was ire
mendous. The market bosses caused to
be circulated skillfully cOncOcted esti-
mates of increased profits certain to
flow from the TransVaal mines once the
British flag waves over them, and the
spirit of gambling was thereby excited
to such an extent that the whole esti-
mated advantage is already more than
discounted. The prices of many shares
We're raised from 30 to so per cent and
the market remained yesterday hard as
nails. It's condition is none the less
most dangerous, for much of the buy
ing was of the irresponsible sort, 50
that mere rumOrS of a serious reverse
would certainly be productive of much
mischief Let no such news come,
however, and the gambling would prob
ably spread in other directions. until
no section of the market would be left
wholly outside its influence. The mood
is upon US, and the news of victories
would induce an Outburst compared
with which what we have yet seen
would be trivial.
Better news comes from Spain about
the disposition of the people toward
the new taxes, and Barcelona is giving
way. The ministry also seems DESTROYS
of introducing real economies by cut
ting down the naval and military
budgets. Should this policy be square
ly followed, Spain would soon have
cause to thank you for relieving her of
her sucker-like colonies.
From Russia another story altogether
reaches me. The Russian finance min
lister frequently protests that it is all
right with the empire; the financial
position was never better; money is
abundant; banking and industry sound,
and so forth The truth is that the in
dustriaI and financial crisis is most Sc
we're, with frequent failures and scan
dals. Very soon, it appears to me, Rus
STA must have money from somewhere,
or else be driven to do something des-
perate And her bosom friend repub-
ncan France, can not afford to give her
az farthing-what with the overloaded
condition of her own budget, the unre-
hitting pressure of domestic demands,
the exhibition in Paris, the metrOpOH-
tan railway and public works through
out the country. Here we would not
lend money to Russia II we could, yet it
is a case with her of borrow or burst;
not immediate, perhaps, but the more
the pressure for financial assistance in
creaseS elsewhere, the more rapidly is
Russia being driven toward the preci-
pice. Our trade last month was the best
in any month this year so far and the
Improvement was fairly well distrib-
uted, even the United States cOntribut-
ing something to swell the totals We
are puzzled though, over the move
ments of copper between the two coun-
tries, because the figures seem to indi-
cate that one set of your merchants
sells US metal which another set buys
back. Our supplies from the rest of the
world do not increase with the rapid
ity expected yet trade holds the con-
hdent belief that prices can not be
maintained much longer.