The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-26
NOT 50 BULLEH ON BUDGET
eovr REACTION IN LONDON
FINANCIAL SENTIMENT.
~. Market Decidedly Better. Theugh
ou,ct-Reduction IN Bank Of Eng.
lands Rate OF Discount Expected
soon-Money 10 he Gradually Freed.


s,,et1l cable Despatch 10 THE SUN.
,oxnos. April 25--It was only for few
honrs on Thursday that the op,imistically
..a,,ed budget Of the Chancellor Of the
r1.beoner infected the money and stock
,nsrke,s with its bull spirit. When the
n,ors,ors lad slept on the Chancellor's
.alcula,ions and came to business yester-
d.v morning their prevalent sentiment
,r-. tina, he was TOO much inclined to give
an appearance Of prosperity by spending
,nnnev before he earned Il. The returns
from both the excise and import duties last
ye.r fell somewhat below the estimates
yet Mr.. Ritche's figures show that he ex-
nects both TO bring him bigger mounts.
during the current yar.
II should be remembered the I Mr.. Richie
il the first EDgl ish Chancellor Of the Ex-
cbeauer for many years who owes his per-
sonhl fortune 10 a prt otics cen ercill
career. { nd as he hs = been himself sue
cessful bank president his figures should
rest on a, lea st IS firm bs sis as the esti-
M ties which are be sed on the doubting
spirit that looks to a long period OF shrink
ing trade and diminution of EnglG nd's
spending power.
The b nix Of Engls nd's rcte OF discount
still rema ms ct per cent, which ma rks
the long continued scarcity Of money. -. A
reduction OF the rete Is certa inly to be
expected within week OF two. The be nix
stitement showed that the proportion Of
reserves to liz bilities hsd risen 81 per cent
IN The week and is now 51sI per cent.
The greatest immediate inducement for
the maintenance of the rate is that n strong
bank position is imperative IL the Transvaal
loan is 10 be issued successfully. Large
foreign subscriptions are sought, and the
position must be preserved where foreign
exchanges are at a level which will enable
gold TO be obtained by the Bank OF England.
A. the present time a very large amount
Of Continental money Is being employed
In this market, and the rates current In
London will he made attractive enough TO
cause This money to be left here for EMPLOY
mant.
The stock markets during the week were
decidedly better, although quiet. Two
salient features OF the budget which will
make for more business and higher prices
ere the Chancellor's sinking-f,ind proposals,
which will mean the buying up and cancel
ling OF f5 500 900 OF consols. and the income
tax reduction, which will remit to the great
public fs 600 600 which otherwise
they would have had to give TO the tax
gatherer
The effect OF this fresh money will he
felt only gradually. 1t Is all in conserva-
tive hands, seeking safe investments, but
in the few hours since the remission Of
he tax there has sprung UP an extensive
iemsnd for prior charge stocks Of English
which are probably the most
'rofitable class Of gilt-edgcd securities.
American railroad shares have been
dull In the absence OF New York
support. The continued strength Of Ar
Confines has now spread over all South
American securities and IL the most buoy
INT feature In the entire market. The
Of foreign securities was mostly
letter, but Chinese issues were dull on
,sbles Ia regard to Russia's position on
he Manchurian affair. .. -.-