The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-04-25
BULLISH SENTIMENT
NEAKENS IN LONDON
Doubt in Calculations of
Chancellor Of ExcheQuer.
DISCOUNT RATE UNCHANGED
Reduction Expected Within Next Two
Weeks-More Business and
Better Prices Looked For.

LONDON, April 25.-It was only for
q few hours on Thursday that the optt-
mistically framed budget OF chancellor
OF the Exchequer Richie infected the
money and stock markets with its bull
spirit. When the operators had slept on
the chancelIoP's calculations and came
to business yesterday morning. their
prevalent sentiment was that he was too
much inclined to give an appearance
OF prosperity by spending money before
ne earned it The returns from both the
excise and import duties last year fell
somewhat below The estimates, vet Mr..
Ritchie's figures show he expects both
to bring him bigger amounts during the
current year.
1t should be remembered MI Richie
> the first English chancellor of the ex-
(hequer for many years who owes his
personal fortune to a practical CONNER
cial career. and as ne has been himself
q successful bank president his figures
should rest on at least as firm basis
as the estimates, which are based on
the doubling spirit that looks to a long
period of shrinkage trade and q diminu-
ton OF Ensland's spending power.
The Bank of England's rate of dis
count still remains at 4 per cent. which
marks the long continued scarcity Of
money. A reduction of the rate is Ger
tainly to be expected within a week or
two. The bank statement showed that
the proportion of reserves to liabilities
had risen 315 per cent in the week and
Is now SIS per cent. The greatest i'm
mediate inducement for the maintenance
OF the rate is that a strong bank posi-
ton must be preserved where foreign
subscriptions are sought and the posi-
ton must be preserved where foreign
exchanges are at d level which viii
enable the Bank of England to obtain
gold At the present time a very large
amount Of Continental money is en-
pIoyed Ia this market and the rates cur
rent in London viii be left attractive
enough to cause this money to be left
here for employment.
The stock markets during the week
were decidedly better, although quiet.
Two salient features of the budget which
VIII make for more business and higher
prices are Mr. Ritchie's sinking fund
proposals, which Will mean the buying
up and canceling of e6,500. 000 of con-
soils. and the income tax reduction which
viii remit to the great investing public
&ssoe0.00 which otherwise Il would
have had to give TO the tax gatherer.
The effect Of this fresh money will only
gradually be felt. It is all in eonserv-
alive hands seeking safe investment,
but in the few hours since the remis-
sion of the tax there has sprung up an
extensive demand for prior charge
stocks of English railways, which are
probably the most profitable class OF
gilt-edged securities
american railroad shares have been
generally dull in the absence of New
York support. The continued strength
OF Argenunes has now spread over ali
South American. securities and is the
most buoyant feature in the entire mar
ket. The position of foreign securities
was mostly better. but Chinese issues
were dull on cables in regard 10 RussIa's
position in the Manchurian affair