The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-08-07
FEAR ABOUT MONEY
Continues to Keep London Market In
State of Paralysis.

New York, Aug. THE Times Lon
don financial correspondent cables:
The position last week did not mater
tally differ from that of the previous
week. We now wait the course of
events, take our holidays and leave
speculation pretty well alone. The SUI
preme question is still dear moneys
it coming or not? The Bank of Eng
land people say, yes, it must come,
and they do their best to keep the mar
ket from slipping away. The market
thought the worst was over a week ago
and was deeply chagrined last week to
find the bank still the master. On Mon
day, discount was 314 to 33s per cent
and on Wednesday, the supply of credit
was so short that the market had to
go to the bank and discount October
bills at 315 per cent besides raise a lit
tie money on short loan at AZ per cent.
This was rather a staggerer, and ac-
cOrdingly bill brokers made haste to
work at 315 to 35s per cent, the rates
they had been before quoting, and cut
ting. Short loans in the open market,
however, were still procurable Ordinar-
lily at "a to 8 per cent. While it is
possible somebody will usually take
bills below the published rate, at the
Bank of England. the opinion is now
that the rate may go to per cent next
week, but much depends upon foreign
exchanges, especially on that with New
York Should your brokers claim gold
from London this autumn, the conse-
quences might easily be a. nasty crisis,
nent
If the French wheat crop is at all
short this year, necessitating increased
importation, the monetary difficulties
in Paris are almost sure to reach an
acute stage. AS it is, speculation on
the bOurse is paralyzed, and the official
brokers are openly accused of maneuv-
ering to depresS renteS against the gov
eminent. The accusation has not been
proved, but the fact that it has been
made reveals the atmosphere Of sus-
picion in which French people exist.
The bOurSe and the people are smother
ed in financial commitments from which
there can be no immediate deliverance
The deadlock continues to prevail both
in France and Germany and in a minor
degree here, so that time and gold can
alone permit US all to escape without
intOlerabl sacrifices.
Our stock market is quite paralyzed
in many departments. The efforts daily
made to engage US in new speculation
in your railroad stocks are so far an ut
ter failure. I last week again made it
my business to inquire around the city
among investment brokers whether the
clients had begun to buy. Certainly
not" was the invariable answer, and
some added: ours are still selling and
we have orders on our books now to sell
Pennsylvania, Norfolks, Northern Pa
cities and Baltimores.''
A fringe of gamblers is no doubt
punting in and out, but solid markets
are never thus esta blished. The truth
ended still more until the excessive COM
mitments to speculation in Industrial
and mining securities are worked off
means to take the American market in
hand will not be available.
Add the industrial activity which
every week demands more currency. to
| the danger of autumn demands upon
| our gold from many quarters, and it is
not difficult to understand the lethargy
| that has fallen upon US. Last week the
Bank of England received sS44, 900 in
| gold from abroad and 9S0O, 900 of il
sums do go into circulation at this time
of the year but they come back again
soon. This year, so far, nothing has
! come back and people say that it is be-
cause some joint stocks begin to hoard
leaning wholly on the Bank of England
stock. There is not much truth behind
this assertion for it is trade which he
quires the cash. However, I look for a
stiff, uncertain and choppy money mar
rent month, the changes may not be
ditiOnS are so uncertain that small ac-
cident might upset all our calculations
And we are by no means clear of the
| danger of a South African war, which
would temporarily shut off the Rand
gold supply. On the other hand the de-
cree ordering the gold standard for In
India is unable to collect gold save by
| borrowing.