The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-03
london MONEY SITUATION,
..,.rr IiI vow. MT 4
!" Iu,,GE ~ EXPECTED.
. ,or rran.,aai Loan Have an Effect
'''" uc,,, selling M Consos In Paris
ra,,,,,nrnl'. Action IN Relation
a., ,rc London Halfway changes.

'" Wv
-.,y ,.,,ir DcSpd'rh 10 'rng SrS.
,o,noy. Nav =? The beginning on the
II, 6pd. the market sufficiently supplied
u n',n ,,oney to repay the large amount due
WIN ,,,sy of England The demand for
wv ho. not been keen and overnight
Ho''' ,ld Eav" been obtained for from
""' al rer cent. sometimes even lower
,L'ucb fund. are rnomentorily album
''"' ,ro market l. still somewhat heavily
""n ",,od TO the Bank Of England and a
',,iruancr If the present ease IL scarcely
w Iva anticipated, II is now thought that
'" .,l,c,i,n Of the banks rate of discount
' =, about concurrent with the hotation
,he Tran.yaai loan, the prospectus OF
.;oh l.. expected in week or ten days.
mis- wee :, return OF the bank discloses
,.a ro,t that its position is az strong as
,c,r ago. when the rate WIS only 3 per
.or, This. like many other abnormal
,,o,c,s in the monetary situation. is at
charitable to preparations TO. meet the
,syoal loan, which the Government
h,s ihat. / 9th politically and economically.
4 is bound to lnGkc a success
PARIS. which has long proved to Ire we'll
rrormea on She conditions Of foreign gov
er,rnert loans. expects that the loan for
the Trar-yaaI will be in the form of ~
Nor cent bonds. which will be' issued at 95.
II Ties. figures are correct they will go
far ,owGrd explaining tho heavy selling
n con.o,s On the Continent by investors
vbt;arr prepared to take up the new loan.
The market for British railway end in
du.tripI securities has be. n marking time
and is uul.kely to develop any distinctive
feature pending the issue of'the Transvaal
loan, which will lock up for time in the
Bank Of England a considerable amount OF
money When that is releas d the Stock
Exchange looks for substantial improve
ment'
Tie market for American securities has
followed tho movements in New YORK
The ahsencc Of further gold shipments from
that city has tended to strengthen the mar.
kct, but dealers here did not care to commit
themselves Thurrday, and yesterday was q
holiday and to-day practically an cff-day
Foreign government securities have beer
affected by the dulness which has cha rae
t.rized all markets The price Of money
in my is declining and business Is
improving The applications for the I'm
reIiaI loan absorbed an immense amount
of money which has. not returned to the
market IS yeti
The electrifcaton of the London transit
systems. which promises to absorb grea
quantity of money, has had very importan
condition imposed this week by the Parlia
mentary committee which il empowered
to grant the franchise. This committee
has rejected the application for franchise
Of the Northeast London Railway. although
this concern aimed to serve 600 900 people
and was supported by the trunk lines whic'
traverse that district The rejection wa
because the hackers of the company ha'
not the financial strength to guarantee
to the committee that they would carr
the scheme through commencing the build
ing of the road at once and continuing
the work ,pinterruptedly until its com
petion The committee added that il
all future London traction schemes It mus
have evidence of full financial guaranteed
before engineering and local questions
will be considered.