The Saint Paul globe., 1900-10-10


NEW YORK, Oct g-The attention of
the financial and speculative world re
mained fixed today on the problems of
the international money markets. All
the worlds great money centers were
kept under careful scrutiny to detect
signs which might throw light upon the
outcome of the contest now inaugllrs,e ed
for the possession of the available money
supply. The enga cement of G50009 in
gold and its withdrawal from the Bank
of England for shipment to New York
marked the beginning of the contest and
confirmed yesterdays estimate that ster-
ling exchange at New York had fallen
within the margin of profit for gold i'm
ports. No announcement was made in
New York of this enlightenment. and it
was commonly supposed that the with
drawal was made in anticipation of an
advance in the price of gold with a view
to future shipment. The Withdraw III
promptly precipitated an advance in the
Bank of Englands price of gold. gold
bars and American. eagles, both being
marked up I'D an ounce. The margin Of
profits on imports to New York was thus
wiped out. Sterling exchange in New
York, which had steadied this morning
after yesterdays downward plunge
thereupon resumed downward course
and closed easy and still tending to-
wards the new level of gold imports es-
tablished by the Bank of England's ac-
ton. The discount rate in London also
responded for the first time to the
threatened demand for gold and. hardened
slightly. Continental exchange, both in
Berlin and Paris weakened notably to-
day on account of heavy continental de-
mand for cotton, buying from that
bourse having superseded for the time
being the English, demand, and in the
afternoon it was announced that 1000, 600
francs had been engaged in Paris for I'M
port to New York. The Bank of France
is undoubtedly bestAaquipped of all the
great European banks to spare gold at
this time. But it has pursued a policy
of boarding for some time past, and the
policy of the institution in the protection
of its gold reserve is exceedingly ar,
bitfary. 1t is takeHsfor granted that it
will interpoSe an obstacle to the decline
inaugurated today Upon the Paris mar
kets gold supply. AS for Berlin, today's
weekly statement of the Imperial bank
shows that it has lost nearly 81, coo, 100
in cash during the week, in spite of re-
ceipts Of gold from Eondon, although il
has contracted above half of the ener-
nous note issue of the week and has
recalled nearly S1500O,0GO of last weeks
loan expansion, which exceeded $25, ,00o-
C0. 1t is clearly evident therefore that
New York will have to make more
urgent call to effect a movement hither
of gold on any considerable scale Mean
time the local money market continued
to harden, and the proportion of call
loans placed at 31a per cent was consid-
erablys greater than Yesterdays Todays
transfers of currency to the interior
through the subtreasury again reported
$3.50, ,vVO,. and the banks have lost to that
institution SINCE F riday\ $22,275000. The
movement by expreslsfs a nattersof con-
lecture but is known to- continue large.
Speculative action Was TtonsiderabIy par
alyzed, pending the solution of these
money market perple4ities and the move
ment of prices was narrow and unin-
portant. There was a notable movement
in the iron and steel group, pretty much
all the members of the group coming
into the movementzas the day progressed.
with advance of from Ito 29points. This
movement and the announcement of the
engagement of gold in Paris served to
overcome some of the early depression.
Strength in the local traction group was
also factor. But the market closed dull
and irregular with but few changes of
Importance. s.szs7s>s a.s4s.s.
The movement IN the bond market was
narrow and irregular. Total sales, par
value, $3.50, ,0O0 IS
United States refining, 23s, declined Il
per cent on the lastSeall.