Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-04-16
MARKET IN WRATHY STATE
Quarrel in English Financial Circles With The
Bank Of England.
Interest Charged az Five Per Cent
New York support Keeps the
English marke Up,

New York. April l6.--The Times Lon
don financial correspondent cables;
Our money market IS In q state Of
wrath against the Bank Of England,
and am sorts Of accusations are being
leyeled az the head Of the present gov
emor. Samuel S. Gladstone The origin
OF the quarrel Is simple enough. A week
ago. thanks TO the enormous dlsburse-
ments OF the government. all short loan
Indebtedness Of the market 10 the bank
was wiped on This feat left the mar
ket very hard up. but Il was performed
and In anticipation OF such repayments
our discount houses had begun 10 force
rates down until "a good deal OF paper
arriving az the beginning Of This month
was bought at 81 per cent discount.
This was bad business from every point
Of view. and some three weeks ago a
hint was conveyed 10 me by the bank
that II the market had 10 60 TO It
for money after the dividends were re-
leased on April 9Th, It would have to
pay per cent
"As long" the bank authority said,
"as we hold large amounts Of govern
ment balances collected from the mar
ket. We don't think Il fair TO ask more
than four per cent from borrowers, but
the position win be altogether changed
when the market has had every penny
OF government money disbursed TO IT,
and then wants more
This warning was given and repeated,
yet the brokers senselessly beat rates
down In the manner stated. Then came
last Monday. with the call for 100000
pounds on the Khaki" loan and imme-
diately the market found that II could
not pay. 50 back 10 went 90 the bank
for assistance. Every WE'LL the bank
replied you shall have &c at FIVE per
cent Hence the wrath and the accu-
sation that the governor Is only work.
ing for his shareholders interests, not
for those Of the market"
How much was paid up In fun upon
the war loan2 ] cannot yet say, be-
cause authoritative estimates difer but
/ imagine. not so much as Gl.Q00000
making E5000000 OF al the outside
ct.500. 700 altogether And yet the mar
ket had 20 go 10 the bank I'm a week
Just closed for quite $1,000 000 Most
Of this was procured by discounts the
bank continuing 20 pay bills up on three
months for currency az four per cent
It's quotations OF five per cent for
short loans merely represented an en-
deavor 20 compel the open market TO
keep ms discount rate as near as posi-
bic 90 the four per cent I'm order 10 post
pone as long as possible an advance IN
the bank rate 10 FIVE per cent And the
market rate does hover around four per
cent one hour a fraction above, the
next hour a fraction below Last Sat
urday II was fraction below, but most
OF the mercantile houses We're shut up
The bank OF England expects % re-
ceive some gold from Russia via Ger
many. but not a great deal for the very
good reason that Russia would not send
a pound II she could help herself
Naturally with the holidays IN pros
pect. disappOintments about the prog
ress OF the war and a fresh twinge Of
scarcity IN the credit market. our stock
exchange has been dumpish and idle.
disposed 20 sell everything Il was car
rying so as 20 take It's holiday 80 peace
OF mind Under such conditions you
can well understand that the boom IN
your railway securities has made no
appreciahle progress Were II not for
the powerful support accorded from
New York. prices for an the best known
stocks must have been worse than they
were. because brokers tell me II has
been 20 realize and nothing but realize.
among British operators an the past
week. until the market closed on Thurs
day.