The Washington times., 1903-04-18

Cheaper Rates Expected
From Low Discount Rate.
INCOME TAX CUT a FACTOR
Anticipated Reduction VIII Release
S35,ooo,ooo for Business Purposes.
Strong Tone IN Market.

LONDON, April I8.-The sensitive
ness Of the market TO consols was
clearly indicated BIZ the sIightness OF
the outside tremoT which was enough to
start a downward movement The chief
causes OF the latest depression have
been The withdrawal of part of the
Paris support, which has been invalu-
able here for many months, and 2 re
vivaI OF the discussion of the features
o. the forthcoming TTansvaal loan, The
disturbing news from the Balkans has
been relatively an unimPortant factor
IL London. which has suffered there
from only through the effects in leading
continental markets.
i Is expected that the TransvaaI loan
fer $50, 100000 VIII be issued immedi-
steIy after Chancellor of the Exchequer
Richie presents his budget TO parua-
ment on April % The loan viii prob
ably be in the form Of per cents. is
sued either a. 9slz or 991z. This will be
followed probably by a reduction in the
Bank or England rate OF discount. There
Is an expectation that toward the end
OF ADTiI the bank viii be sufficiently
rate from 4 to 31z per cent. II so.
money will certainly be more plentiful
and cheaper this summer than il has
been for long time past.
But the paramount factor in the mar
ket for investment securities is the ey-
peetation that a material reduction in
the income tax viii be announced bv
Ar. Richie next Thursday. If. as is
expected, he viii reduce the tax from
10 pence to u pence in the pound it win
give decided encouragement to the mar
kets- Sucn a reduction would mean
that E. coo 600 would be left 10 the
business and professional community.
which at present the taxgath erer seizes.
Much of this would certainly find its
way into the investment markets.
Business in American railroad shares
IS largely confined TO dealings on New
York account. although some continen-
tai buying continues There is, however.
3 decidedly strong tone here in the
American market. Much uncertainty is
still felt in regard TO the financial stu
alton in the United States. although the
enormous decline in values in recent
months has been borne by Wall Street
and the New York money market much
better than at one time was deemed
possible
Foreign government securities have
moved irregularly. The principal fea-
tuFe was the weakness of Spanish bonds
on French selling, and on the closing Of
large account on the Spanish bourse
Few changes have occurred in indus
trials apart from the strength or United
States Steel corporation stocks, which
improved in sympathy with American
securities, and also on the publicity Of
the recent balance sheet. which the
newspapers printed in exteno here this
week Business in the Copper market
has been subdued, consumers here be
ing apprehensive OF the tension ID
American financial circles. influential
purchasers, however, have impaired a
hardening tendency, although a leading
European concern is reported TO be out
Of the market at present. The consump-
lion trade in Great Britain is still slow.
although some works are thought 10 be
rather short Of material The outlook
for Copper in Germany IS encouraging
Business in South African mining mar
ket remains very slack