Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-01-09
BUSINESS
N LONDON
Bankers Are Uneasy About
the Market.
THE GOLD FOR GERMANY
Exceeded That Imported Into the
United States--Bank Dis
count Rate Advances
THE GOLD FOR GERMANY

New York. Jan. "a. J. Wilson, finan-
cial editor of the london Daily Stand
ard, cables to the Times from London
Business on the London stock eN-
change last week did not keep its first
promise. Our bankers are uneasy about
the future of the money market because
the Bank of England is not gaining gold.
They fear, therefore, advance rather than
decline in the banks discount rate. I
do not, however, share this fear and think
Improvement is probable soon. But mat
tiers were complicated last week by a con-
siderable selling from Amsterdam and by
the closing out of a large account in Par
is, which seems. to have been open for
many months. The events keep the
prices heavy and prompted some of our
spectators to sell for a fall. The conse-
uuence will be that in all probability our
fortnlghtly settlement this week will be
easier than many suppose.
"Short loans are plentiful and will be
at least one-half Of one per cent cheaper
than they were at the end of the year.
This will give markets heart and must
produce favorable reaction. Still, the
business lone in American railroad Sc
c%rrlties is not yet on a broad basis with
us. The stock exchange has acquired i'm
portant holdings but the public at large
continues either to hold alOof or to sell.
Really strong and progressive markets
are not to be counted upon until this con-
dition is changed. And it will not be
changed until we are more easy in mind
about the immediate future of our money
market.
1T is known that orders for gold are
in the London market for shipment to
America as we'll as for Germany and if
these orders should result in heavy with
draWals from the Bank of England in
stead of advances in security values. we
shall have more or less sharp reactions
with further pressure of sales from this
side on the New York stock exchange.
But there is a strong desire to be up and
doing in the public mind which must de-
yelop into extensive dealings if you do
not brighten us. The worst of the situa-
ton is that German monetary stringency
is not yet nearly at an end. Discount
rates have gone up there since the new
year opened and exchange has gone
what against us. Thus it is by no means
New York alone that we fear, although
the continent never scares us as New
York can.
Our board of trade statistics for the
completed year just published show that
the United States took rather less gold
from us last year than did Germany
eleven millions sterling as against nearly
twelve and a half Millions. Usually it is
the other way and your trade balances
are so enormously against Europe at
present that We're you to stop buying Sc
curitles and take gold to liquidate them
you could upset our market completely.
Curlously enough our commercial bal
ances are just as apparently adverse as
yours are favorable. Our imports of
merchandise were nearly III, 900, 600
pounds in excess of our exports combined
last year-an unusually high total
which places us at a great DISADVANTAGE
for the m in spite of our enormous
income from capital investment abroad,
the income of which I calculate to be
worth quite 100, 0G0, 900 pounds a year to
us on an average. All this goes to show
that the immediate future of our money
market is not by any means without
clouds. But we shall come out all right
and forge ahead directly we are relievede
from those fears of dearer money which
now are prevalent among our bankers
and dealers in credit"