New-York tribune., 1900-12-16
THE LONDON HONEY MARKET.
DREAD LEST FOREIGN DEMAND FOR GOLD
SHOULD APPEAR

DREAD LEST FOREIGN DEMAND FOR GOLD
SHOULD APPEAR
London Dec. 15.-In the open market discounts
throughput the week stuck close 70 four, the work
ing rate being a sixteenth and occasionally
eighth below the market. Nevertheless, there
a state Of apprehension. fearing Wednesday
that the bank rate would go to- five. short loans
continuing easy ranging from two TO three on call
loans. with an advance to three and a half
Thursday. owing Stock Exchange payments.
1t is dificult how effective per cent
can be established: nevertheless" says THE In
vestors Review" five is coming. The directors
Of the Bank OF England may be forced by circum-
stances feel Obliged for Government reasons TO
postpone the step. but they cannot contemplate
with equanimty the exposed state of the market.
The leading foreign exchanges are now against us
to such an extent that France, Germany and the
United States may each spring gold demands any
morning. causing trouble To turn the exchanges
In our favor and bring back gold in large amounts
is probably beyond the power of a per cent bank
rate We regard the delay in the advance with
dread. lest find six worse necessary. In
other words, We suffer from the preliminary conse-
quences of the enormous Government expenditure.
1t is due TO having been able 10 utilize Austraa's
gold and the mistake OF the Simla, Government
in Tending of gold demands from ourselves that
the market has been kept quiet. Since Smla com
menced the practical abandonment of the gold
standard and resorted 10 buying silver with
pensively acquired gold il has parted with s4 7OO
not directly benefited thereby a shiling's worth"
Owing 10 II being account week and much tele-
graphic interruption the Continent the Stock
Exchange was unusually quiet. time of
pre-emnent stagnaton.- There was deathlike still
ness over most of the departments. II is ap-
pretended this portends storm, and is compared
with the Stiffness OF the Niagara River before it
reaches the chasm, all the markets being in the
current.
Deducting the general condition and prospective
necessities Of the Government. THE Investors Re
view regards no home security at the present
prices as being good investment. and expects
lower average prices not only before the year end
but in an indefinite time 10 come. Home rails have
been fairly strong and generally higher. Interest
in Americans centred principally in Eres and their
connections. The excitement was mainly IN Wall
Street London day late for the fair.
THE Statist," discussing the money position
voices the fear that gold may be tide Berlin
over the year. apart from which the Bank OF Eng
lands reserve may be only eighteen millions the
year end, Justifying rise in the bank Posi-
bly,, the bank, desiring 10 avoid advance will
permit gold 10 be withdrawn. 1t Is said the bank
has arranged TO part with half million I'm antic-
patton Of the arrival Of half a million from India.
The quantity Of French money in London is very
cause II TO be withdrawn unpleasant position
would be created. The Indebtedness TO the United
States is also great. II is improbable, however,
that New-York will call for gold from London,
a portion OF the balance in the American Treasury
being available.