The Indianapolis journal., 1899-07-15
MONEY SCARCE.
BRITISH FINANCIERs APFREHEN-
sIvE OVER THE SITUATION.
Bank of England Forced to Raise the
Rate of Discount from and
31-2 to 4 1-2 Per Cent.
WILL CHECK GOLD SHIPMENTS
AND PREVENT FURTHER DECREASE
OF AMERICAN RESERVES.
Views of the statist, Which Presents
a Pessimistic View of Financial
Conditions at London.
FRENCH NATIONAL FETES
REVIEW OF THE TROOPS BY NJ. LOU
BET AT LoNGCHAMPs.
Cheers for the President, VI. March,
and, the Army and the Republic
Few Minor Disturbances.
Views of the statist, Which Presents
q Pessimistic View of Financial
Conditions at London.
FRENCH NATIONAL FETEs
REVIEW OF THE TROOPS BY NJ. LOU
BET AT LONGCHAMPs.
Cheers for the President, VI. March,
and, the Army and the Republic
Few Minor Disturbances.

LONDON, July 14-The Press Association
to-day sent out the following statement
which Is believed to be accurate: Business
IN financial circles is considerably checked,
owing to a certain anxiety as to the future
and the remarkable reticence maintained in
all quarters. the scarcity Of money and the
recent large sales of consols. block of
E1.000000 is reported to have been sold
Wednesday. To add to the apprehension
Is the season when the provinces require
more money than usual in connection with
the activity of trade. But, nevertheless,
bankers and others are keeping large sur
plus balances for emergencies. 1t is well
known that considerable amount of Ger
man bills are held here at speculation rates,
and that a large amount of credits are on a
Berlin firm which recently failed. 1t is
understood that a small financial house here
arranged TO take the bills as they arrive
from the East through July at 17s, and as
the discount is 3is there is very serious
matter for the firm. Rumors are therefore
current OF impending financial difficulties.
and under the circumstances II Is not sur
prisng that banks and others are acting
with more than usual precaution just now
In keeping surplus balances well In hand.
The Statist, In its editorial OH the money
outlook, tomorrow will say: '"The Bank
OF England has raised the rate from 3 and
31s per cent. TO AZ per cent. for short ad-
vances There was some question whether
the general rate should be put up to 4. but 1t
was finally decided that an advance of n
per cent. would be sufficient for the mo-
ment. This step was forced upon the bank
by further heavy reductions in the reserves
OF the New York banks from e9OO0,0Oo to
&l0Oc000. This reduction not only makes
further gold shipments from the United
States out of the question, but brought
London to face the possibility Of New York
taking money from Europe so soon as wheat
begins to move. The continued outflow of
cash into the country, the French competi-
tion for gold In the London market, the in
ability Of the Bank of England to obtain
gold abroad to greater extent than is
necessary to meet interior requirements and
the ability Of Japan to take gold away II
she requires it-these all are additional fac
tors for protecting the bank reserve. Since
June II the reserve has declined about
seoo,o0o. Will the present rate have to be
further advanced? Is the question. Last
year at this date the reserve stood at more
than f2o000,00o Then We were calling in
money from Germany. and the United States
was taking payment for wheat and cotton
largely in securities. This year we have no
balances in Germany and may be unable
TO pay the United States by selling stocks.
Hence we must be prepared either to offer
q discount rate sufficiently high to induce
American banks TO keep balances on this
side or TO send gold in payment for produce.
We may consequently witness per cent.
rate here and higher rate in Germany
than last year.
The Westminster Gazette this afternoon
says: "A call of s1, 10000 will fall due next
Monday for payment on the japanese loan
and on various other issues of capital