The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-31
THE BANK RATE MAY Be LOWER
OUTLOOK FOR FURTHER REDIC.
TTON ~ LONDON.
stock Market Nuiet-situation Influenced
by the Liquidation IN New SOrk--(on.
tinentaI Centres Show Increased Buy
ting Abiiity-COpper shares Disturbed.
Special Gable Despatch to THE SUN.

I'VE s"pbN' s''"'"'"su'
Special Gable Despatch to THE SUN,
LONDON. May 3O.-The outlook for the
money market here now is that the Bank Of
England will be able to reduce the official
minimum rate from ga to 3 per cent. after
Whitsuntide, and that it will so remain
till the autumn. when the demands for
America will necessitate the restoration OF
the per cent rate, in order TO prevent the
reserve from falling too far. The reduce
ton Of the rate last week has not adversely
affected foreign exchanges. The position
will be very different later in the year, when
all Continental exchanges will be against
this country, owing to the fact that the
bankers of the chief European centres who
are now employing money in London can
find more remunerative uses for it locally.
Moreover. the excellent crop prospects in
the United States will mean more than the
usual drain from the money market here.
The commencement Of the monthly settle
ment in oonsols Yesterday stimulated the
demands for cash. with the result that the
moderate amount which fell due at the
bank was all renewed and considerable
business was done in weekly loans.
Business in the stock markets remained
more or less at standstill, and the tone
was uncertain. There was rather better
tendency in frst-class securities and South
African mining shares, but this was neu-
tralized by pronounced depress ion in the
An eric IN department.. The~e was also a
severe fall in the value Of copper shares.
The general position throughout the
week has been Influenced greatly by the
liquidation which is going on in New York.
Although this is regarded as a sound pro-
ceecling. which does not justify alarm, the
hope is expressed that it will end in the stocks
passing into stronger hands.
II has been known for long inc that
much unplaced stock was being carried
on borrowed money, and this knowledge
has had deterrent effect on the conserva-
tive public. The chief Continental centres,
especially Germany. show an increased
buying ability, and they have been taking
I'D a good deal that New York disposed Of
early in the week. French buying was also
strong, but was chiefly confined to bonds.
This healthy condition on the Continent
promises to continue, as neither the Balkan
nor Moroccan situations are regarded as
threatening.
The copper market was scared by a
r,1mor that cut was about to be made in
price by leading American producers.
Although no confirmation Of the report
could be obtained, i, aggravated the under
current of pessmism, which made oper-
ators for fall unusually active.
The investment possibilities here threat en-
to be unusually curtailed. owing to the
unsatisfactory situation in several impor-
talit indust ries. The shoemaking and cot
ton goods trades are both in very bad
way. The Welsh tin plate industry ia
in worse condition than it has been for
several years The high price Of mat erials
makes production unremunerative and a
general stoppage of the works is expected
shortly