The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-06-09
FEAR THE EFFECT
OF WAR EXPENSES
London Uneasy About Pro-
lOnged Drain.
ALREADY TALKING
OF ANOTHER LOAN
FOresee Further Opportunity
For American Gain.

London, June S.-There was difficulty
today in finding profitable employment
for the olethora of money and dis
counts were correspondingly weak.
Business on the stock exchange
opened with a rather better tendency,
but the attendance was meagre ac-
centuating the usual Saturday slack
ness. Americans were irregular and
mostly below parity. Baltimore &
Ohio and Louisville We're quotabIy
strong. In the absence of business the
close was quiet.
With the ease OF money in New
York. Paris and Berlin, the reduction
of the Bank OF EngIand's rate of dis
count did not afford an inducement for
foreign buyers to withdraw funds from
London. This, together with the fact
that whatever gold arrives is likely to
DE secured by the Bank of England,
enhances the probability Of a further
addition to the banks already large
reserve 4 withdrawal of French
money IS now unlikely. Although q
great deal of uneasiness existed in
Paris at the reported discrimination
OF bankers in London in regard to
American film 1cial paper, the reduc-
ton of the hank rate conceived the
DOSlLlOu
the United States is regarded in Lon
I don with confidence. Likewise the
/ withdrawal of American money is i'm
4 probable for the present, in view Of the
J tact that exchange in New York has
/ risen to a point admitting of gold
/ shipments to London
Government Embarrassed.
] The superabundance Of money is
/ largely due to free government dis
I N IA al e-Narv
! menTs cause ease of money, the gov
/ eminent position is Increasingly en-
! barrassing. The process of the ex-
/ hauStiOn Of its resources tends to re-
! duce the cash balance to a. vanishing
/ point by the time the next loan in
/ stallment E5 $40, GEO. is due. on June Is
/ This viii be insufficient to meet the
/ disbursements to July II, when an
/ OtEa~ instaHment is due. Hence, N
/ order to provide for the interest on the
! debt, July 1, the government probably
1 viii be obliged to raise &3 600 on
deficient bills, thus beginning July
i with a floating debt of approximately
! G coo. 900 sterling This process of re-
1 ceiVing a loan iustallment in anticipa-
} ton OF the date IS due, apparently. TO
/ continue for some time and unless the
/ war ends earlier than Il seems prob
! able the installments viii be INSULT
! cieut to meet the outgoing amount
! and the government viii be obliged to
Z
tiCn of the revenue of the March quar-
ter. The depression in cOusOlS in spite
/ Of The reaction in the bank rate is a
/ disappointing feature. It is not sur
I pristng, however, considering the enor-
NOUS addition to che gift edged invest
1 ueut area as a result of war REQUIRE
ments with the suspension of the sink
/ ing fund. Besides, the probability OF
the ultimate necessity for a further
! loan.
| rTba c+atfs+ eve ssr+ cannot no TOO
1 strongly impressed upon the govern
ment that the actual sum paid out on
! account Of the war is a very small
/ part Of the expense the nation is bear
ing, and that commercially, as wen as
financially, the prOlongatiOn Of the war
is a very serious matter"
America the Menace.
Discussing the eRect of the bank rate
on discounts the Statist points out the
I danger of an undue decline, as there IS
great likelihood that money VIII be
exceedingly scarce and dear in the
I autumn, adding. "Ihere is much &c
suggest that the demand from the
United States will be exceptionally
( great toward the end Of August anC
! throughout September and the rest Of
/ the yea Unfortunately, the crops
I promise 20 be poor in the greater part
Of Europe and there is a prospect thai
France and Germany Will have TO buy
&
I peting with US in the markets of the
{ world wiz all have to pay higher fo1
/ what we want Germany may be ablt
to get most Of her supplies from Rus
STA. It is safe to conclude, however
that the United States will either .eX
port a larger quantity even than in re
cent years. or, if the weather of. june
and July Injuries the crops, she viii 81
j able to sell at much higher prices. s.
far as Europe is concerned, it is de
IN oh
be very large. 1T seems certain that il
= either event the balanc Of Indebtedness
! will be increasingly against Europ'
= / and in favor of the United States
Z / Therefore. it is not an unreasonable
conclusion that the volume Of mOne-
| needed in the autumn to conduct tn
vast business which it seems lkeI.
| will be beyond eli comparison create
B / than ever before, enhancing rate
greatly, Will result in a large drain o
/ 70, he n ar &