The representative., 1900-10-11
THE MONEY MARKET.

The London money market is again
precarious, due to the scarcity Of gold.
All hands are hauling at the blanket and
we may have crash all over the world.
The following from New York fore
shadows coming disaster:
NEW YORK, Oct. S-Trading on the stock
exchange today was marked by q revival
OF considerable bear movement, the ac-
ttvity of which was aggressive and persistent.
Efforts to depress prices were contested
by the speculative holders of long stock,
who were successful last week in lifting
prices in spite of the various unfavorable
factors which developed in the situation. The
conflicting forces at work were reflected in
| feverish and irregular movement of prices.
had the effect of unsettling speculative
opinion. There was constant variation
The marked depletion of banking reserve
revealed by the Saturday bank statement
between apprehension over construction Of
money supply and the prospect of relief by
imports Of gold. The conviction became
pretty we'll settled as the day progressed
that gold would move from London towards
New York this week. The market for
sive stages throughout the day, and de-
mand sterling closed full cent in the
pound below Fridays level, which was the
last day Of active business in the exchange
market.
The price Is within small fraction Of
the level generally agreed upon as offering
profit on imports Of gold at the present
price of gold and rate for money in London,
and is probably within the limit that would
allow the special transactions which general
struggling fashion. Owing to the tempo
rary abundance Of money in London on
account of the government financial opera
tions and receipts OF gold from India in
payment for silver, discount rates continue
to fall there and offer no resistance to the
pressure for gold. The small movement Of
gold from London to Berlin today was in
response to the transfers of sterling from
New York to Berlin, which have progressed
in connection with the payment of subscrip-
tions to the German loan member Of the
German loan syndicate broadly intimated
today that requirements or exchange in
payment Of subscriptions to the loan were
about satisfied and expressed the opinion
that the same was true in connection with
the British loan.
the exchange market, the flood of cotton
bills which continues to appear in the mar
ket 1nsureS movement hither Of gold
which only sharp advance in foreign dis
count rates will serve to check. SUCH
CONTEST FOR GOLD as would thus be
precipitated, even il it resulted in favor of
New York. might not be an altogether re-
assuring circumstance for speculatOrs as
the forcing Of liquidation in foreign markets
might have reflex action here. Hence, the
unsettlement of the speculative mind today,
In spite of the prospect of gold imports.
There was also an appreciable narrowing
OF the money supply offering in New York.
The prevailing rate held at per cent for
small loans and ran up to 3h per cent
during the afternoon, but the higher rate
brought out an abundant supply to fill this
requirement and the rate ran off to 2h per
cent. The interior movement of currency
continues unabated, and the deposits at
the subtreasury alone today for transfer
to the interior footed up $3.50, 1000. With
the exception Of a period of strength in
the iron and steel stocks, led by the Ten
nessee Coal and Colorado Fuel, the reac-
tionary tendency was predominant and the
leading stocks were of from to points
With the late break in call money and the
fall in exchange to about the gold point,
prices rallied somewhat, but the market
closed feverish and irregular.
We shall watch. the result with curl
osity. A universal demand for gold will
likely preeipitate calamity, and force the
world to abandon the standard forced
upon it by the money power I'D.