The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-01-16
FEARS FOR THEIR GOLD.
Have Been Temporarily Allayed
Among English Financiers-

New York. Jan ia dispatch to the
Times from London says:
rapid transformation has taken
place in sentiment in our money market
this past week We began it in trepida-
ton lest you should take away too much
of our gold for there were orders in our
market for New York account, so bill
brokers said, and lin fear of this they
tried to screw the discount rate up to
pa per cent.
The Paris rate Of exchange too, was
dipping ominousIy near the gold export
ing point and we could not beat all
op a crisis of its own All time loans
from day to day or from week to week
were growing cheaper and cheaper, un-
til the banks had to accept IL per cent
for seven day money This struggle
between money rates and discount rates
lasted until Thursday morning, when
improved exchange quotations both on
your side and on the continent weaken
ed the bill market even before the Bank
of England return appeared After that
came out there was an end to the SER
ious endeavor to maintain the discount.
BANK IS NOT RICH
The Bank of England is not rich, by
any means, but its market balances
were shown by the return to be 1000. 900
larger than the week before, a sum quite
sufficient, other changes being favora-
bic to induce ease in loan rates at least.
And discount invariably follows money
down when immediate prospects do not
forbid.
At the end of the week, then, with
bills falling rapidly to per cent, with
money 1 to IL per cent with gold pass
ing into the bank instead Of leaving it,
the prospect is thus established that the
bank rate next Thursday will be lower
ed to at least 31a and probably enough
to per cent.
For the bank to resist the current is
useless, because at least a month must
pass before the in-gathering of reve-
nue. places US in position once more to
dictate to the open market On this
basis cheap money is destined to endure
for some weeks
Politics on the continent apart, I
therefore look for considerable develop
ment in stock exchange speculation.
Thus far market activity with US has
have had an immense amount of noise,
not only in that department of the
stock exchange devoted to American Sc
curfties, but also elsewhere
DEALERS NOT DOING MUCH.
I find, however, that the most import
ant class of stock brokers and deal
ers on the stock exchange have not
been doing much, investors holding
aIoOf or coming to the market to sell
The impression in Throgmorton street
up to now is that Wall street has been
going too fast Tired out holders of
Atchison, Reading, Erie, Northern Pa
cific and similar classes of stocks kept
selling as you drove prices up and they
have not yet put. their money back into
other American railroad securities of
the better class.
Buying goes on undoubtedly but it is
buying of the curbStOne punter, who is
one moment or day in and out the next
For this reason the great upward move
ment on your side has up to the present
had no other consequence than to keep
up our exports of your securities
A feeling that cIiques have regulated
the pace of your rise, which may mean
mischief later on, holds back the quieter
sort of spectators here But this re-
serve may disappear any day. Indeed,
if Wall street can keep the present
movement up for little time longer it
is bound to win because a multitude
can no more resist the attraction of adj
yancing markets than the moth can
eschew the candle.
Given peace and cheap money and
with prices rising at breakneck speed,
foresee such an outburst of speculative
activity on this side as will match
yours But you must keep on buying
Try to sell now and our gold fears will
revive worst than ever, bringing de-
pressed markets with them.