New-York tribune., 1906-10-21
THE DISTURBED STATE
OF THE MONEY MARKET.
Especial by French Cable to The Tribunal

associated with the great name OF Peel are I'M
paired in England. The Banking act which has
regulated automatically the gold supplies and
the currency for half a century and mas been
the foundation of British financial credit, is not
operating satisfactorily. since the gold reserves
are not increasing and there are sudden and Yio-
lent changes in the rate Of interest, which have
a most disturbing effect on the money market.
Germany with a more flexible currency, attracts
and holds gold. The Bank of France keeps a
larger reserve than the Bank of England, and the
changes in the rate of discount are not so sharp
America, a creditor nation and hotoed OF
speculation, draws gold when 1t is wanted. These
conditions implying the urgent necessity ior
mending the Banking act are illustrated by yes
terday's unexpected rise of the Bank rate OF per
cent. 1t cannot be explained by the high rate IN
Germany now by a considerable withdrawal OF
gold for Egypt, by any large specuiauFe
movement outside Of America, and apparently
the demands were subsidng in that quarter Inv
bank had taken a defensive attitude peloIe 'le
attack was resumed and will have difncultS III
enforcing The rate Meanwhile. consols nave
fallen still lower. and investors are aiAiihe ~
the sense of unseen dangers
TRUSTS AND FREE TRADE.
Peel's second title TO fame is also clouded IN
these troublous times One OF the most connoent
boasts Of Cobdenism has been that trusts ano
Free Trade cannot exist together, and that COM
binations for the prevention Of competition are
impossible without a tariff, yet the bewlldered
Free Traders are reading columns about the au-
dacious soap trust. which controls over 80 per
cent of the product, and has established new
rule that fifteen ounces make pound the
price Of gIycerine is affected, and this makes d
disturbance in the drug trade, involves costlier
medicines and a dearer toilet table for women
and rms I'D the cost of dynamite and explosives
until war becomes too expensive to be seriously
considered. The soap trust is only one among
thousands of combinations in the Kingdom anu
there is no resource under Free Trade Ior nsht-
ing them. America is not defenceiess' as is
shown by the Findlay verdict against the sum
dard oil COMPANY Germany makes no attempt
10 regulate trusts or combinations by WHICH uo-
rnestic production and export trade are con-
,roIlea and according to Bremen dispatches IS
now financing a vast International combination
either for fighting Rockefeller or making an
alliance with him. But England is powerless 10
enforce legal penalties against the soap plunoer-
ers The only defensive resource is newspaper
sensationalism. The Daily Mail having
rlunged into one campaign against an imaginary
book trust is now starting another for the ex-
1osure of the soap barons and the defence OF the
1,urity of medicines and cosmetics.
FEWER FIGHTING SHIPS.
The Briton is not altogether happy when he
stands in Trafalgar Square, where the Nelson
column is decorated with laurel leaves ana pa
.riotic notices, for while he knows that the
Dreadnougbt is the best battleship afoat, he is
disturbed by Lord Tweedmouth's explanations
Of the reduction of the Admiralty programme
and Lord Roberts's fresh warning that strong
navy is not the only safeguard needed for the
,,ro,ection Of England. There is also current
r11uor that the government, bent upon redeem
sng its pledges of economy, is prepared TO re-
duce the lighting ships in commission by re'ir-
ing many battleships and cruisers. and this is
regarded by the blue patriots as an omen
OF disaster. This is matched by another report
obviously premature, that the Prime Minister
will head the delegation to the peace congress-
The only precedent for II would be Beacons-
fields attendance at the congress at Berlin
But the rev sion Of Ignatieffs treaty and the
prevention [ a European war were widely diff
ferent issues from those coming before the
Hague congress. Earl Grey is making special
study of the questions likely to arise, and has
she benefit of many consultations with the per-
rnanent officials OF various departments. The
possibility Of a general agreement among the
powers for the reduction of armaments has
been considered by the officials of the Admiralty
and the War Office. and artificial method Of
limiting them by system Of percentages and
\ averages has been discussed There were SINH
d lar calculations when the Car proposed dis
armament but the problem was more difficult
than squaring the circle. The American dele
gates saved the first peace congress from failure
by having a definite policy. They may be
equally successful a second time - they take a
practical line of their own for the protection
of private property at sea and the explicit lrni-
tation Of contraband.
FORECAST OF PARLIAMENT.
Meanwhile the British squadrons afoat have
not yet been raided by the reformers, and the
Prime Minister has plenty of employment with
out attending the Hague congress. The Tories
are forecasting ruin for the government during
the autumn session. opening next week. and the
Prime Minister'S retreat to the House of Lords
by Christmas. Their anxiety to get rid of him
IS ineligible, for Mr.. Asquith would succeed
him as leader Of the House Of Commons, and
the labor group fears and dislikes him since he
has a scornful way of discussing the crude doc
trines preached by the socialists Rut +be
Prime Minister cannot be spared from the
House Of Commons. The ministers are holding
well together, and without dissensions in the
Cabinet there cannot be serious revolts on the
Liberal side No political crisis is probable
H4though the session may most exciting
THE BOROUGH ELECTIONS.
The borough elections in the metropolis are
sluggish, the occupiers being apparently con-
WINGED that taxes will continue TO rise whichever
group OF politicians carries them The nunic
tpal reform party recommends the abolition NJ
the Board OF the Guardians, the administra
ton Of the poor law by borough councils. and
the equalization OF rates in the METROPOLIS but
also demands legal limit for debt expenditures
by the London County Council and the restric-
ton Of municipal trading undertakings which
are necessary and cannot be carried on effective
" sf0lE