The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-03-28
TIGHT MONEY RULES
THE LONDON MARKET
Great Depression in American
Stocks Reacts Everywhere.

LONDON. March 2S.-ThC settlement
OF the account in general securities
which proceeded on the stock exchange
today found the markets more than
ever AT the mercy OF holders OF ready
money. There has been a very large
business in loans and renewals at the
Bank OF England. The demand for
money was such that holders OF bills
in many cases were inclined to borrow
rather than discount in the hope that
after the turn Of the month conditions
may be more favorable The fact that
bills are being held back has not pre-
vented an advance in discount rates.
The governments financial year ends
on April l. and il is in a plight similar
70 that OF the private investor. There
are only two things which will stem
the subsistence OF cOnsois-a big ex-
cheQuer payment into the sinking fund
OF the national debt. thereby canceling
an equivalent amount OF consols. or
big purchases OF consoIs by national
and savings banks.
Neither of these things can be expect
ed from the present economic situation.
The chancellor of the exchequers bud
get has TO meet increased outiays for
the army and navy from revenue. which
to say the least, is not likely 10 show
expansion. The Bank of Engiands po-
sition is remarkably strong. but spe-
cihcaIly so to finance the governments
heavy obligations, of which the Trans
vaaf loan is the nearest and the grant
toward Irish land purchase the most re-
Gently announced It is expected that
ha TIE lin
at ? per cent and will be issued at %.
This expectation tends further TO weak
on consols as an investment.
There has been, moreover, a big specu-
lative account for a rise in consols since
peace was declared They have dropped
points since then. and the struggle to
retain holdings for better times is a con
siderable factor in the hard monetary
situation. though It is tacitly admitted
that the active control Of high finance
has passed TO New York for the time at
least London does not look for the pres
ent for relief across the Atlantic. 10 is
the strength OF Paris that has furnished
what support London has recently been
able TO secure The break In values there
yesterday and today consequently reacted
badly here.
The fan in copper and copper shares,
together with the drop in Spanish gov
eminent securities, upon the resignation
Of Senior Vilaverde. the finance minister
OF that country. inflicted heavy losses
and produced a pessimistic feeling. The
effect Of this in London was the selling
here Of French holdings in South Afri-
can mines. besides the withdrawal of
money loaned here Money has also be-
come scarce in Berlin. and the leading
German sbaRks have Withdrawn. -cOnsid-
cradle proportion Of the balances they
have been employing on the London
stock exchange. These aggravated the
fall In consols and helped the general
depression In stocks.
Rates today for loans till Monday we're
3lzQ341 per cent. The markets are prac-
ticaIly at a standstill, while the account
Is being settled All the markets have
been affected by the depression in Amer
leans. At the opening today New York
Central fell 4. Chicago. Milwaukee. and
st. Paul 3. Norfolk and Western Pc.
Wabash debentures, Louisville and Nash
Vile, Canadian Pacific. and Baltimore
and Ohio 2. Chesapeake and Ohio and
Union Pacific *. Atchison. Illinois Cen
trail Southern Pacific. and Wabash pre-
ferred IA Pennsylvania IA. Southern
Pacific and Denver and Rio Grande l.
Kansas Pacific =. Atchison preferred
p and Southern Railway a, Reading and
Ontario and Western q. and Denver and
Rio Grande preferred and Union Pacific
preferred Y.