The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-12-20

poses are returning much more slowly
than usual. No undue expansion of
money is simply the result of phenome-
nal trade and industrial activity. New
York banks are taking care of regular
customers at reasonable rates, and 6 per
cent is the common rate to good mer-
camille borrowers; but the Spectator
must pay high and in many cases pro-
hibitive rates, especially when the new
industrials are offered as collateral. The
prospects for easier rates in the future
are not promising. Bank reserves are
low, and building them up under present
conditions viii be slow work, except
through the unwehcome process of re-
trenchment. Saturdays bank statement
should show sharp contraction of
loans. Preparations for January dis
bursements, amounting to about $50, 000-
900, will cause temporary arrangement;
but as considerable of this sum will be
reinvested it will afford some relief.
Meanwhile, the treasury continues to alb
serb funds at an uncomfortable rate;
offers to buy bonds or anticipate inter
ests are only partially effective; and no
signs of easier conditions are in sight in
therefore that we see no firm rates for
the remainder of this month; and this
of course is adverse to bull stock mar
ket. On the other hand, 1t should be
remembered that general conditions are
exceptionally favorable; prices have~un-
dergone a considerable decline especi-
ally the industrials; liquidation has been
extensive; earnings net and gross of the
great corporations are large enough to
warrant belief in a better market after
while, especially as there is every rea-
son to expect a continuance of present
prosperity for some time to come. 1t re-
mains to be seen how long monetary
conditions will counteract these infiu-
ences. The next few days may witness
some interesting developments. The
bears have gained considerable in
strength and audacity by recent sue
cesses, and will no doubt push their cam
paign farther if possible. A decisive
British victory in the Transvaal would
have a stimulating effect here, inasmuch
as II would diminish the prospects of
monetary difficulties in London
In circular dated December y. Mr..
Ciews said: 'The money centers all. over
the world are disturbed at the present
ume. The Bank of England's rate of dis
count is now 6 per cent, which is the
highest for over ten years, and the rate
In Berlin is per cent. The management
OF the Bank of France is the most des
potic of the worlds great financial insti-
tutlons and they hold on to their gold
with an iron grasp, hence its rate sell
dom changes. The fact that thew have
now been compelled to advance it from
per cent to S13 per cent Cbeing the first
time in over a year and only three times
within ten years. is an evidence of the
gravity of the situation This institution
glided through the Barring panic without
making change in its rate, notvith-
standing that the shock was seriously
felt al lover the world, thus showing
what stalwart concern the Bank of |
France really is. The present change in |
Its rate therefore, is significant The |
South African war is probably RESPONSE |
BILE for much of the disturbance of the |
worlds financial equilibrium due to the |
stoppage Of the annual gold supply from |
the Transvaal mines, the loss of which |
is the most keenly felt in London as |
Great Britafn's recuperating supply of |
the precious metal during late years |
has been from that source As a matter |
Of fact, instead of getting it from there. |
that nation is compelled to make large !
remittances to that quarter for war ex-
penses. The object, therefore, of the
bank advancing its rate to s per cent |
with the possibility of it going still high |
err IS to draw gold from other sections |
Of t1e world France Gerroanv Austria |
Russia and America all are resistant, as
werever gold is lost in this struggle con-
traction followed by liquidation is a
natural sequence There is. therefore, a |
process of loan contraction going on more |
or less in all these money centers with |
the object of being prepared to meet |
This state of things neces-
states conservatism"