The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-21
LONDON MARKET IS: FIRM,
THE DISCOUNT RATE rs STILL
FURTHER REID CED.
Large sums Released for Investment
Week Closes WITH American shares
strong Recover. IN United states
SteeI-Dcn,and for Gold In Germany.
.spec,a, Cable Despatch to THE Sun.

Special Clhc IrSp1tH 10 lhs SlN'
LONDON. June 20 With the discount mar
~, once more uGd4r control of the central
restitution, and in view Of the strong po-
,niou Of the Eank Of Englard the directors
did not hesitate on Thursday to reduce the
rate of discount from az to Per cent.
though the recent advance IN the German
lank rate to 4 or cent and the strained
situation in Wall Street rendered the market
.jtnation doubtful. and it was a question at
tho last moment whether the reduction
should he made The reserve of the Bank
If England for the week increased fl ,l75.00O.
There was rehux of Gl.Ol2 600 coin from
circulation ard public deposits were e, 1885,
,oN larger. chiefly owing to the payment of
the irs,alment on the Transvaal loan. The
pank of England rate is now, with that OF
France and Belgium. the lowest in Europe.
The highest rates are Servia 8: Greece.
,ls ard Bulgaria. 3 The Bank Of Bombay
las reduced its rate to per cent. and the
Tank of Eengal to &
The immediate effect of the lower stand
ard of interest was the release for more
profitable employment Of large sums Of
money which had been deposited with bank
FRS who can now allow only ~ per cent.
lnteres, instead of ?i? 1t also caused an
appreciation in the price Of Consols and gilt
edged securities Although there was no
sign of an overflow of cash into the specu-
latve departments money has been fairly
abundant and short discount rates have
hern leceding Three months bills. espe-
,iallv American, came forward rather freely.
There vas, however. no danger OF the rates
,lding back too far in view Of the active
d.mand for gold in Germany and the value
%, money there All the Continental eH-
changes have moved against London.
Til" Imperial Bank of Germany reports
an increase in cash of f1.1C9,4O The
Eeici shank according TO despatch from
Tug SINS Berlin correspondent. has de-
,ided that in future it will not pay advances
20 gold imports from European countries.
lp vii! continue to make advances on i'm
rorr, from countries outside of Europe.
In Berlin the private discount rate has
iarcened to 81 per cent. In Paris 1t Is
easy. at 2' per cent.
Th" renewed and severe liquidation in
tho American railroad market caused COLI
i'll. rahle disturbance here. Easier money
~ London, it was argued. would cheer Wall
street and facilitate American borrowing
herr" Resides. the reduction in the Bank
Of EngIandS rate Of discount was regarded
- evi,lt nee that that institution was not
M x!p,i- in regard 20 the financial position
il Ar,srica The American marker re-
-:,oi,Cled by rising about dollar above
parity. but r,ImorS of failures in Chicago
and fresh weakness in tractiun stocks
caused wave of selling yesterday. espe-
calv on Berlin and Amsterdam account
1t was an exciting day. Values moved up
and down in wide limits but a rapid recov-
cry SGT in toward the end, and it is hoped
that the market will steady itself on the
arrival of MI Morgan in New York
Railroad securities opened firm this
morning The feature OF the miscellaneous
markets yesterday was the large business
transacted in United States Steel stock
Opanins at a considerable decline. the quo,
,atiens were forced down until the common
shares were quoted at % sic and the pre-
ferred at 79i4 on rumors that the price Of
steel products was about to be reduced. 1t
was said that one big operat Or had been COM
PEELED to baud over his account to leading
financial houses for adjustment, There
were, however, heavy repurchases later,
and shares of L. S Steel moved up quickly
10 80 and 81. and this morning there was
further improvement OF x and ~ respec-
lively.
The dealings in foreign Government secu-
rifles and in tho mining market were on
small scale this week and were of no i'm
pOrtance