Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-01-06

The Government Draws on Bank
of England-The London and Globe
Trouble Not at an End.
LONDON, January 5.-Money was in
easy supply, being increased by the re-
lease of dividends. Discounts were
easier in sympathy. The attendance
of the stock exchange to-day was al
most unprecedented for Saturday.
Interest conferred in Americans.
The stock exchange opened wildly
excited, with large variations. Amer
leans were at much above parity and
the American department was SO over
crowded that brokers found it difficult
to approach. st. Paul started with
sensational jumps. reaching 1859, with
dealings limited. The stock afterward
receded and then readvanced. Fries
were also particular feature. They
were bought in large lots by local spec
ulators, but chiefly for American ac-
count. Atchisons were another favor
lite stock. Others were about dollar
above parity except North Pacific
common, which went below. After the
first excitement there was general,
moderate reaction. At the lower level,
buying was resumed and there was a
quick recovery to near the top. The
transactions were the heaviest known
for long time. A number of promi
nent bears" were badly caught, but
there were no failures. At the close
prices were a trife easier.
1t is expected that there will be trad
ing in the street until late in the even
ing.
The boom favorably affected other
departments, Kafflrs especially harden
ing considerably. West Australians
were better, recovering part of their
losses, on rumors that the London and
Globe finance corporation, limited, had
disposed Of its interest in the Baker
Street Waterloo railroad to the Yerkes
syndicate.
Consols were firmer. Grand Trunks
were very fin in sympathy with Amer
leans, particularly seconds. Rio Tin
t0s hardened.
Abiding to the relations between
the Bank of England and the govern
ment. whose manipulations have kept
credit dealers, for some time, in con-
tinuOuS state c. nervousness the In
yes;C- / Review maintains that the five
per cent bank rate viii prove a very
different thing from what it was a
year ago. The market, it pointed
out, is exhausted by prolonged COM
paratively dear money and no longer
has the strength to bear up against
adversely. Such a rate implies that it
will therefore be prudent to expect fail
urGs. There are many indications that
the financial collapse which it was pos
sible to avoid or conceal at the begin
ming of 1909 VIII now become visible.
Whatever changes occur the foreign eX-
changes will not advance sufficiently
to turn the stream hitherWard. There
fore five per cent will probably be fol-
lowed by six per cent. and when it ar
rives even the most confident must dis
Germ signs of an approaching crisis.
The worst is the mess in which the
government is plunging. The treas
ury's floating debt to the Bank Of Eng
ID may be said to amount to all the
extra taxation still to come in before
the end of he financial year, and the
war expenditures must be higher than
ever 1T is doubtful whether the four
millions of local loans to be issued
January 9Th will be taken up by the
public. This makes nine millions bor
roWed on this stock since the begin
ming of 1900.
So widespread has been the havoc
resulting from the London and Globe
smash that the stock exchange on one
Or two occasions this week was peril
ously near a panic. Not only were
there numerous failures, but the conf
dence of many speculative sections was
shattered No one was sure wnere the
trouble would break out next. The adj
vance in the bank rate affected invest
ment in securities and business for a
while was mostly confined to reducing
commitments. The trouble has not
yet been fully disclosed, but the worst
is known and the feeling is more cheer
full. Home rails have mostly been
weak, with one or two prominent ex-
ceptions Americans were ~ne liveliest
section. the activity being mainly lie
result of Wall street operations.
Une OF the chief results of the boom
was the practical eXtlngulshment or
the bear account. The impression Is
abroad that the position is dangerous.
1t is said that number OF American
trusts are overloaded with shares and
that any momentary tightness may
easily cause huge blocks to be sudden
ly thrown on the market.
Silver was dull throughout the week,
although the India government Is
steadily purchasing. The monetary
condition partly accounts for this dull
ness, Holders prefer to sell than in
cur the cost of increasing stocks. The
inquiry for general account was insig-
nificant The brokers were practically
the only purchasers and they were
able to deal on their own terms. If it
had not been that the government
must buy largely in order to protect its
note circulation, the fall in silver prob
ably would be heavy.
VECTEp TN N0NGp ECS