The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-07-30
SECOND EDITION---6 AM.
THE LONDON MONEY MARKET
DEMAND FOR MONEY To CARRY ON
WAR Is THE CAUSE OF 1T.
The Rank Has stinened the Rate by
Going Into the street and Borrow-
ing-Lenders Are Nervous.

New York, July 29.--The Times Lon
don financial correspondent cables
ground swell OF uneasiness has Influenced
our money market all week, suosiding
slightly toward the end, it is true, ~
NC really disappearing. The tact ihat
busLoess mas been driven to the Bank OK
England because credit dealers On the
outside were afraid TO discount Diiis ca
per cent, shows now strong the sentiment
OF apprehension was.
AT The end OF the month we expect gen
orally some little scrambles ior money
owing TO our monthly bank balance shees
arrangements. The restlessness mad lat lie
to do with that on TINS occieion' SNORT
credits are fairly cheap always, never
rising to more than IL per cent. except
on Friday and Saturday, when stock eA-
change payments made lenders occasion
ally exact per cent. seven day loans
rarely cost more than Ia per cent, and
everybody looks for greater cheapness
when the new month comes in; yet bro~-
ers would not discount freely. sometimes
not al all st per cent for the first three
days of the week, ami discount business
accordingly went 20 the bank
This curious display Of cross currents
Tor the moment indicates that the bank
has been borrowing money from the mar
ke<, because it fears calls upon it later
and desires the market TO strengthen IT.
self. But for the banks action. credi 8
would never have reached 3 per cent, and
some bill brokers would certainly have
worked under per cent That, now
ever, Is merely A temporary influence,
the bank must again release the money
il gathered in. aud Ne shall be IN more
slippery condition thsn before.
Deeper cause OF dread in the money
market "a found in the fresh demands
made by the government for money 70
carry on It's wars You may not remem-
Der the steps by which we have been led
into our present position. Last Oct bel
10000, 600 pounds sterling our chancellor
OF The eycnequer told US, was 20 see tbs
entire thing through BY February II
became mora than twice that amount, ans
nv the middle of March the demand ha'
swollen 10 about s.. 600 600 pounds sterling
Now another II 100000 pounds s.erlini
goes on top OF that, 100000 pound
sterling Of 1t for China. Not only has al
the war loan money been spent, but tn
government has had "a Issue 2,ou0,O.
pounds sterling in Treasury bills mi
week, and is nearly 5000 900 pound
sterling in debt to the Bank Of England
besides having used UP 10 per cent Of III
fog amid all these leakages Of capitaa an
new demand. so that fits of nervousness
In the market may be excused, especial
as il will have the greatest difficulty j
finding the money required.
We must recollect that AL these want
Of the government are in addition 10 tn
ordinary demands from municipal co
porations all over the kingdom, from o.
colonies and from India and that quite in
2ean' possibilities Of expen1Iture az
opening up in connection with Chin
alone
Hardness in money has lifted cont
mental exchanges slightly In our favo
but We are NOT out Of danger OF raj
mon our small stock Of gold, and cons
quently we must expect after lit
pause to see money again advance and
p2r cent bank rate as the next move
Such possibilities and entanglemen
have put on end to all life uron the sto
exchange, and business is smaller hi
since before the Barring crisis-mu
smziler if the multiplicity OF new secuI
ties added since then is taken into a