New-York tribune., 1901-06-09

though certain amount of uneasiness existed In
Paris at the reported discrimination of bankers in
London in regard to American finance paper. the
reduction Of the bank rate convinced the trench
bankers that the position the United States is re-
sarded in London with confidence Likewise, the
withdrawal of American money is improbable for
the present, In of the fact that exchange in
New-York has risen to point admitting of gold
shipments London.
The superabundance of money is largely due TO
the free government disbursements While these
disbursements cause of money. the govern
rents position is increasingly embarrassing. The
of the exhaustion of its tends TO
reduce the cash balance to a vanishing point by
the time the next loan instalment. f5,5100GO. is
due June Is. This will be insufficient to meet the
disbursements tn July H. when another instalment
is due Hence, in order provide for 'he interest
on the debt on July T. the government probably.
will be obliged to raise G3OOO.OO0 deficiency
bills thus beginning July with floating debt of ap-
a loan instalment in anticipation of the date may
apparently continue for some time. end unless the
war ends earlier than IL seems probable the IL
stalments will be insufficient TO meet the outsqng
row considerable in anticipation of the reve-
nue. for the March quarter. The depreciation IN
is Disappointing feature. 1t is not surprising,
g eged lhe se9s m result Of the
WAR T 9 With the Suspension OF the k
necessity for further loan. The Statist says
1t cannot be too strongly impressed upon the
government that the actual sum paid out on 'ac-
pense the nation is bearing and that. commercially
as well financially. the prOlongation of the war
is a very serious matter
The fail in consols to below 90, prOgnosticated
weeks ago. is daily nearer realization.
Discussing the effect of the bank rate or dis
counts, The Statist' points out the danger of an
undue decline. there is great likelihood that
money will be exceedingly scarce and dear in the
autumn, adding:
There is much to suggest that the demand from
the United States, at all events, Will he exception
ally great toward the end of August and through
out September and the rest OF the year Unfortu-
nately the crops promise to be in the greater
part of Europe and there is a prospect that
France and Germany will have to buy more wheat
than lately. Those competing with us in the mar
kets of the world will all have to pay higher for
what we want. Germany may he able to get most
of her supplies from Russia IL is safe TO con-
clude, however. that the United States will either
export larger quantity even than in recent years
or. if the weather of june and July Injuries the
crops, she will be able to sell at much higher
prices. So far Europe is concerned. IL is deSir
able that the American crop should he very large.
II seems certain that in either event the balance
of Indebtedness will be increasingly against
Europe, and in favor of the United States. There
fore. IL is not unreasonable conclusion that the
volume of money needed in the autumn 70 On
duct the vast business which il seems likely will
be beyond all comparison greater than ever be-
fore enhancing rates greatly. will result in large
drain OF gold to the United States.