Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-05
MONEY RATE RISING
London Journal Says 1t viii Reach
6 Per Cent,
FINANCIAL PANIC PREDICTED
Gloomy View Of the Credit Of
British Government.
LOAN MAY GO BEGGING

LONDON. January 5.-Money was in easy
supply here today. being increased by the
release of dividends. Discounts were easier
in sympathy.
The attendance Of the stock exchange to-
day was almost unprecedented for a Sat
urday. Interest conferred in Americans.
The stock exchange opened wildly ex-
cited. with large variations. Americans
We're all much above parity and the Ameri-
can department was so overcrowded that
brokers found IL difficult to approach. St.
Paul started with sensational jumps, reach
ing 1862 with dealings limited The stock
afterward receded and then readvanced.
Fries We're also a particular feature. They
were bought IN large lots by local specula-
tors. The transactions were the heaviest
known for a Ions time. A number Of prom
inent bears were badly caught, but there
were no failures. At the close prices were
a trifle easier.
1t is expected that there will be trading
in the street until late in the evening.
The boom fGvorably affected other de-
partments. Kaffirs. especially, hardening
considerably. West Australians were bet
ter, recovering part of their recent losses
on rumors that the London and Globe FL
nance Corporation. limited, had disposed of
it's interest in the Baker StreetWaterloo
railroad to the Yerkes syndicate.
Consols We're firmer Grand Trunks were
very firm, IN sympathy with Americans.
particularly seconds. Rio Tintos hardened
Review Predicts Failures.
Abiding to the relations between the
Bank of England and the government,
whose manipulations have kept credit deal
ers for some time in continuous state of
nervousness, the Investors Review main
tains that the per cent bank rate will
prove very different thing from what it
was a year ago. The market" 1t points
out, is exhausted by prolonged compare
lively dear money and no longer has the
strength to bear UP against adversely.
Such rate implies that it will, therefore,
be prudent to expect failures. There are
many indications that the financial collapse
which it was possible to avoid or conceal
at the beginning of 1900 will now become
visible. Whatever changes occur the for
eign exchanges will not advance sufficiently
to turn the gold stream hitherward. There
fore per cent will probably be followed by
per cent, and when it arrives even the
most confident must discern signs of APP
preaching crisis.
The worst is the mess in which the gov
eminent is plunging. The treasury's float
ing debt to the Bank of England may be
said TO amount to all the extra taxation
still to come in before the end of the finan-
cial year, and the war expenditure must be
higher than ever 1t is doubtful whether
the four millions of local loans to be issued
January will be taken up by the public.
This makes nine millions borrowed ON this
stock since the beginning of 1900
So widespread has been the havoc result
ing from the London and Globe smash that
the stock exchange on one or two occasions
this week was perilously near panic. Not
only were there numerous failures, but the
confidence of many speculative sections was
shattered. No one was sure where the
trouble would break out next
Advance In the Bank Rate.
The advance in the bank cate affected in
vestment in securities, and business for a
while was mostly confined to reducing COM
mitments. The trouble has not yet been
fully disclosed, but the worst is known and
the feeling is more cheerful. Americans
were the liveliest section, the activity being
mainly the result of Wall street operations
One Of the chief results of the boom was
the practical extinguishment of the bear ac-
count. The impression is abroad that the
position is dangerous. 1t is said that a
number of American trusts are overloaded
with shares, and that any Monetary tight
ness may easily cause huge blocks to be
suddenly thrown on the market.
Silver was dull throughout the week, al
though The India government is steadily
purchasing. If it had not been that the gov
eminent must buy largely in order to pre-
tect its note circulation the fail in silver
would probably be heavy.