Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-07-30
WORRYING OVER FINANCES
Ground Swell Of Uneasness Influences Lon
dOn's Market
Cause Of Dread T. Pound I'm the Dee
mands Of Government 20
Garry on Warss

New York. July g0.-The Times Lon
don financial correspondent cables.
a ground swell of uneasines- has Inc
duenced our money market al week,
subslding slightly toward the end. 30 is
true. but not really Disappointing The
fact that business has been driven 90
the Bank of England because credit
dealers on the outside We're afraid 90
discount bills at three per cent shows
how strong the sentiment of appre-
hansion was. AZ the end of the month
we expect generally some little scramble
for money owing 90 our monthly bank
balance sheet arrangements, but the
restlcssness of the market had little to
do with that On this occasion.
Short credits We're fairly cheap ale
ways. never rising to more Titan 5a per
cent. except on Friday and Saturday
when stock exchange payments made
lenders occasionally exact four per cent
Seven-day loans rarely cost more than
3A per cent. and everybody looks for
greater cheapness when the new month
comes In. yet brokers would not dis
count freely, sometimes not at ALL az
four per cent. for the first three days OF
the week, and discount business accord
ingly went 10 the bank.
This curious display Of cross currents
for the moment indicates that the bank
has been borrowing money from the
market 20 strengthen itself But for
the banks action credits would have
never reached per cent. and some
bin brokers would certainly have
worked under four per cent. That how
ever. is merely "a temporary influence,
as the bank must again release the
money it gathered 10 and we shall bo ln
a more slippery condition than before.
Deeper cause of dread in the money
market is found ia the fresh demands
made by the government for money tU
carry on its wars. You may not zee
member the steps by which We have
been led iu our present position Last
October el 100000. our chancellor Of the
eNchequ0r told us. was t0 see the entire
thing through By February 30 became
more than twice that amount. and by
the middle OF March the demand had
swollen 90 about EjiOUnou0 Now an-
other gll500. 600 goes on top of that l3-
600 600 of 10 for China. Not only has all
the war loan money been spent. but the
government has had 90 issue EZ00l.O0l
in treasury bills this week. and is near
ly cGG00 600 in debt to the Bank Of
England. besides having used up l9 pei
cent. OF the war loan paid up in full.
We feel in fog amid al these Leak
ages of capital and new demands SD
that fits of nervousness iu the market
may De- excused. especially as % VIII
have the greatest difficulty iu finding
the money required.
We must rec0Ilect that an these wants
OF the government are BOZ addition to
the ordinary demands from municipal
corporations an over The kingdom. from
our colonies. and from india and that
quite indefinite possibilities of cNp.n-
ditures are opening up Zoo connection
with China alone.
Hardness Boo money has lifted c0nti-
mental exchanges slightly iu our favor
but we are not uut of danger ut raids
upon OUT small stock 0t gold and cone
sequently we must expect after lutle
pause 90 see money again advance and
"a five per cent. bank rate as the next
move
Such possibilities and entangIoments
have put am end 90 900 hfe upon the
stock exchange and business DIS smaller
than since before the Barring crisis.
much smnller 81 the multiplicity 0t new
securities added since then is taken in-
20 account