The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-03-12
British Financiers Have Hard Row
to Hoe.

New York. March 1.-THE Times
financial correspondent cables:
1.-THE British money market last week
has been all budget and war loan. In
stead of credits becoming cheaper, they
have been dearer; first because the rush
to clear tea, tobacco and spirits swept
fully 100000 pounds extra away from
the money lenders, and secondly, be-
cause the commercial demands on the
market are increasing
1.-THE consequence has been that the
market was never able to release itself
from the power of the Bank of Eng
land which lent and latterly discounted
heavily daily at its minimum.
so poor did the open discount mar
ket become that during the last three
days it also quoted 4 per cent, thereby
insuring to the bank a heavier share of
business. Furthermore discrimination
has begun to be exercised in regard to
that class of bills drawn by the CONT
nental-chieffy German-banks and ac-
cepted by their own branches here, be-
cause the Bank of England refuses to
accept these as security for loans or
for discount. Some houses have been
declining to take any of this class of
paper, others have bought sparingly at
Az per cent. discount.
Crowds are f1ocking into the bank
to lodge applications for the national
1t is already applied for twice over in
London alone, and 1 should not be sur
prised were it applied for a dozen
times over if the lists are kept open
until Tuesday night. The quotation for
scrip is 2$s premium Only per cent
in cash is required to accompany the
application, but a ten-fold application
would mean the temporary locking up
of 5000, 900 pounds even on this basis
and the market simply has not the
money. Already it owes the bank about
5000, 900 pounds, and it must borrow
more today.
1.-THE outlook is thus far from com
Portable for those who speculated three
weeks ago on the basis of a 8 per cent.
discount rate in March and discomfort
! is expressed regarding the dilatory &C
ton of the treasury in releasing the
| tax accumulation. It might easily dis
| burse five or six millions, it is contend
ed, and so make up all difference be-
tween adverse and favorable rates on
! money
"One banker asked the chancellor of
| the eXchequer if the treasury would ac-
! cept deposits of consols, scrip or float
ers. in lieu of cash with the applica-
tions, and was referred to the Bank
| of England. This meant that cash
| alone would be received, a part of
which must be borrowed at 4 per cent.
| to secure allotments of a loan yield
! ing barely per cent. All of the 3d.
| 600 900 may be paid up in full after
| April 8, but the existing state of the
market forbids the expectation that tn s
| liberty will be freely embraced, and the
prospect rather is that monthly recur-
rent pinches win occur in the market
/ as the successive installments of three
| or four and half millions become pay
able.
Much depends upon the liability of
the government to ship bullion abroad,
which is quite an unknown factor. Big
wars usually do involve this danger,
and the mere dread that such will be
the case is sure to maintain our mar
kets in a rather fevered state. Easy
money is short and may be put out
| of sight for this spring and summer.
1.-THE curious fact is that all the mill
| itary successes in South Africa have
| failed to bring animation back to the
stock exchange. 1t is curious but ex-
| plainable. The markets both here and
| in Paris rave manipulated prices until
| they now stand well above all rea-
sonable limits not only for KafHrs, but
! for copper mine shares and for all sorts
of industrials. and even British rail
| way issues. The last named indeed
| have been bought on the assumption
! now II is all drag, drag, with efforts
to sell whenever the news looks fav-
orable
Stock exchange bears have no APP
pearance of being overloaded, but the
market bosses nnquestionably are, as
are also their dupes among the public
No Transvaal mine dividends either
are coming in to help to pay from te
10 per cent interest charged to carry
time bargains or paWned stock move
n1ents.