Arizona republican., 1901-10-31
IA BETTER EXCHANGE
A Significant Political Fact in the Withdrawal From the Bank of England the Accounts of French and German Houses = Some thing Entirely New in the His tory of Finance.

New York. Oct. 30.-Opinions were expressed today that foreign exchange here is approaching the point where without loss. This is largely facilitated by the sharp decline in exchange on London at Berlin and Paris. Paris ex- change dropped Ec further today, to 25f 91sc, the lowest point of the present movement. On the other hand, de- mand bills here on London ran up to s4.S6A@4S7-
 The heavy withdrawals of gold from the Bank of England for shipment to Paris, Berlin and other money centers, the growing belief that call money will work higher in the first named city, and that the Bank of England will probably advance it's rate of discount next week, in addition to the continued local advance in demand bills. on heavy purchases to cover maturing obliga- tions which were entered into last spring, combine to make a complex and very interesting financial situation.
 The abrupt decline in Paris exchange on London is due to the fact that French money is being withdrawn from London in large quantities for use in other transactions and partly because the Frenchmen are to a large extent
 
 Englishmen. One local authority esti- mated the amount of new French cap itaI invested in London during the last nine months at $100.0oO.0oo. He says that more than one-half of this has already been withdrawn.
 These investments were referred to as special" in distinction from the large amount of French capital per manently invested in London, and which there is no idea of withdrawing Many Frenchmen have in mind to put their money in the new issue of rentes which is about to be brought out. and possibly in some new loan of another country. Russia being the most likely one.
 The United States, on the other hand. made large loans in London last spring in connection. with the Burlington and other deals, which some estimate as high as S6OOOO, ,0o0 to S70,000.000. and these have been maturing in quantity during the last month. while still oth CTS will come due between now and the end of the year.
 Large amounts were taken up, which accounts for the strength of sterling exchange, although ordinarily the abundance Of grain and cotton bills at this time of the year would furnish
 
 the amount made last spring. The con stant increase in the loan account of the city banks indicates to what degree the loans paid off abroad were renewed here.
 Local bankers thought that tOmor- rows bank statement would show q. further expansion of loans, due to the above cause. This seemed to be borne out by the urgent inquiry for demand bills. Whether the city's repayments of loans made against revenue war rants during the week would be suffi- cient to offset the expansion above noted is regarded as a matter of guess
 The absorption of money by the pay ment of customs and internal revenue due and shipments to New Orleans was largely offset by the receipt of new gold from the Klondyke- The general feeling among bankers is that the weekly statement will show loss of cash.
 The time is approaching when re- ceipts from Alaska will cease, and then it is largely a question how far (Continued on Eighth Page.)