The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-07-30
A GROUND SWELL
Of Uneasiness Sweeps Across the
London Money Market.

New York, July 30.-The Times Lon
don financial correspondent cables:
A groundswell of uneasiness has in
huenced our money market all week,
subsiding slightly toward the end, it is
true, but not really disappearing. The
fact that business has been driven to
the Bank of England because credit
dealers on the outside were afraid to
discount bills at 3 per cent. shows how
strong the sentiment of apprehension
was. At the end of the month we ex-
pect generally some little scramble for
money, owing to our monthly bank
balance sheet arrangements, but the
reStlessneSS of the market had little to
do with that on this occasion.
Short credits were fairly cheap al
ways, never rising to more than 31a
day, when stock exchange payments
made lenders occasionally exact per
cent. Seven day loans rarely cost more
than 81 per cent, and everybody looks
for greater cheapneSS when the new
month comes in, yet brokers would not
discount freely, some times not at all,
at per cent. for the first three days
of the week, and discount business ac-
cordingly went to the bank.
This curious display of cross currents
for the moment Indicates that the bank
has been borrowing money. from the
market because it fears calls upon it
later and desires the market to
strengthen itself. But for the banks
action credits would have never reached
< per cent, ana some Dill brokers' would
certainly have worked under 4 per cent.
That, however, is merely a temporary
influence, as the bank must again re-
lease the money it gathered in, and we
shall be in more slippery condition
than before.
Deeper cause of dread in the money
market is found in the fresh demands
made by the government for money to
carry on its wars. You may not remem-
Der the steps by which we have been led
into our present condition. Last October
Ell 900, 600. our chancellor of the exchequer
through. BY February it became more
than twice that amount, and by the mid
die of March the demand had swollen to
goes on top Of that. ssoOoooo Of It for
China Not only has all the war loan
money been spent. but the government
bills this week, and is nearly S6,0O0, 900 in
debt to the Bank of England besides hav-
ing used. up 10 per cent of the war loan
We feel in a fog amid all these leak
ages of capital and new demands, so that
excused, especially it will have the
greatest difficulty in finding the money
required.
we must recollect that all these wants
of the government are in addition to the
ordinary demands from municipal corpor-
atoms all over the kingdom, from our COL
finite possibilities of expenditures are
opening up in connection with China
Hardness in money has lifted CONT
mental Exchanges slightly in our favor,
but we are not out of danger of raids
upon our small stock of gold, and conse-
quently we must expect after a little
pause to see money again advance and a
5 per cent bank rate as the next move.
Such possibilities and entangIements
have put end to all life upon the stock
since before the Barring crisis, much small
Ter if the multiplicity of new securities
added since then is taken into account.