Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-01-08
Rates Have Tumbled
Down Of Late.
VIOLENT FLUCTUATIONS
Are Sure to Be Followed by Sharp
Relationships Markets Will
Continue to Remain FeveriSh-
The New Issue of Stock.

New York, Jan. S.-The London fnan-
Cial correspondent of the Times cables:
A fortnight ago bankers were buying bills
from brokers at 6A per cent. Yesterday
they could get them for a little over four
per cent. Yesterday morning sundry
parcels We're sold by brokers to bankers
at AN per cert, but money was so abund-
ant that loans for a week could be ar
ranged at from 8 to 8 1-3 per cent and dis
per they had taken and run the risk of
the market themselves.
So complete a change looks and is I'M
healthy, but it is easily accounted for. The
government had to borrow dividend mon
ey from the Bank of England and other
moneys besides for wal purposes. All
this is new credit and produces quite a
effect from the release of credit
previously withdrawn from the market
by the collection of taxes. Further, the
bank retained all its imported gold last
week. so that it's reserve was much
strengthened. On the other hand, the
high rates for money have checked the
of new instruments of credit and
reduced the volume of speculation so that
the requirements of the market was
No wonder, then, that rates
have tumbled down. or that they should
like going still lower. Had the gov
eminent been able to wait till yesterday
or tomorrow before selling it's last crea-
ton of treasury bills, it would have saw
ed a considerable percentage of the rate
paid.
Violent fluctuations of this kind are
the prelude to steady ease and are
sure to be followed by another sharp re-
but for all that they are the nat
ural result Of circumstances. The more
the government borrows in the beginning
of a war, the cheaper does credit tend to
become on each occasion when large uln
of borrowed money are ~dissbursed.
Probably discounts will remain easy all
this month, in the neighborhood of four
per cent. Then foreign exchanges will
once more move against us and gold OBJ
tanned by the forcing process viii flow
out again, sending the market up as fast
as lit fell. With all the ease of money
the stock market remains draggy and un-
comfortable. The fact is that quite apart
from The blighting Influences of wan anN-
ieties, speculation has been paralyzed by
the losses of the last few months and the
public has neither the means nor the
coura Sc to begin again.
This is proved by the fac that all the
failures announced in connection with the
end of the year settlement We're those Of
brokers. Of men who execute orders for
men. They had to suspend because
their clients could no longer find the
to meet their differences and hum
n res5c nf fyyooa which hra We NOT foi1o1
to lose from the same cause. The
stock markets will therefore continue few
erlsh n treacherOus, however, easy
may become.
Sudden contrasts must be expected
everywhere n one could be more
striking than that to be afforded by the
sale of the new local loans stock, an
nounced for tender this week, when COM
pared With the price the treasury had to
Civ for the $4,000 raised on accommodate
ton bills sold last Tuesday. Probably
local loans stock will go at about 3
cent.
This stock issue is a proof of the
straits to which many of II m%unicipali-
ties nave been put by THE rise in the price
Of loanable capital. The government has
the power to act as an honest broker for
these bodies, borrowing in lump to lend
at retail, at a profit nominaMy but really
great risk of loss. more than G5 600. 600
O.u having long ago been
off as i~rrevocable. So when
were calling in money or refus-
ing to lend except at over 6 per cent.
local governing bodies went to the treas
urp and said: You must help US or we
must bust"
Hence, the $4,000. 900 OF new stock to be
issued this week. The condition of the
money market is decidedly
Anne and rates are coming down in
france and Germany as we'll as here. AL
thoush not SO far nor fast. In Russia
alone there us NO easement and for the
reason that the credit institutions
or that empire are over-committpd
through its raw Industrial enterprises !
The government of Russia is anxious ard
would like to see a sort of credit indus
trial bank established to advanca MONEY
TO IRON works. oil works and machine
all now carried on by means of ac-
bills, continuously renewed ,
at Z per cent and upward.
our market closed last night more fat !
man was confessed and the true discount
rate FOR three months remitted bills at
me flnash was a bare AZ per cent, with
money offered until tomorrow ut 2lh mar |
cent. a ke'