The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-05
LONDON MONEY MARKET EASY.
REACTION AFTER TUE HALF-
YEARLY SETTLEMENTS.
Continental Demand for Gold Is Keen
Prevailing DuIness in American
Securities Ascrllbetl to the Friction he"
tween Russia and the United states.
Special Gable pespateh 10 THE Sun.

Special Gable Despateh 10 THE Sun.
LONDON, July 4. AT the close OF the hall
year the usual pressure was noticeable IN
the loan market, owing to monthly, quar-
terly and half-yearly payments falling due
and because the Joint stock banks we're dis
posed to restrict their lending operations,
indeed, to call in what loans they could In
order to make good show OF cash IN their
half-yearly balance sheets but they are
now again lending freely. The eject OF
the heavy half-yearly displacements was
clearly shown in Lombard Street, where
money, despite the repayment OF the large
sum due to the Bank of England, rs in
abundant supply at 1914 per cent. Tor
overnight loans and ~ per cent. for the
week. The discount market rates were
sympath etically easier, three months notes
being quoted Mt IN.
The demand for gold for Continental
account remains keen. Since last week
there has been an advance of fully ~ in
consols, which few years ago would
probably have meant boom in the markets
generally. The underlying reason was, OF
course, the expectation of period OF cheap
money, but the appreciation In the price
of glt-edged securities is not likely to he
large, as several British city corporations
deem the moment opportune for placing
loans. There is also an Argentine railroad
loan of E2.50O,OOO pending.
The changes in this weeks Bank of Eng
land return were of considerable impor-
tan e. The market had borrowed heavily
nearly 100000, 900. There was an expansion
~ q IN ~, rir nd
of 1897 900 IN coin. Consequently the re-
serve was down sl,573,OoO, the ratio OF
reserve to liability falling o. per cent. to
49, 8 per cent. According to the German
bank returns the demands for money seem
' TO he on the same scale as in 1902. The cash
balance is g4,sS8, 600 lower than at this time
last year. There has been an expansion
in the note circulation of G13.se2 900.
Reports of friction between Russia and
America over the Kishinen protest nave
been quoted this week as an explanation
Of the prevailing heaviness in the Ameri-
can railroad market. The truth is, how
ever, the market has been allowed to drift
and prices consequently have been ebbing
There has been very little business to test
the market, but the general impression
seems to be that the liquidation has passed
of. In the last few days a number OF
buying orders came from the provinces.
Some big houses have also been picking
UP stock at the present low range OF prices,
but in anticipation OF to-days holiday
in Wall Street American securities yester-
day remained dull below parity, with frac-
tiona losses on the balance.
As the raw cotton season proceeds the
position of the staple industry OF Lanca-
shire is becoming worse. Fewer spindle
looms are working at this week END than
last and there will be more shutdowns next
week Some firms that had not worked
short hours since the American civil war
are now running on half time. The earn
ings of the working people have been con-
siderably reduced II will be two months
yet before the new supplies Of raw cotton
are on the way TO Manchester and Liverpool
and in the meantime there will be much
suffering. The next stock takings Of the
spinning and weaving companies are
awaited with anxiety. Large losses have
already been declared.
The total visible supply of copper de-
creased 478 tons during the month to 1929
tons, as compared with % ,2sl tons a year
ago The price of standard copper has de-
clined 50 shilings to ESTE a ton. The mar
kct, so report says, has been Influenced by
an uneasy feeling in regard to the financial
position in the United States, Last nights
closing showed further decline to E58
II. Cd. a ton.