The Birmingham age-herald., 1907-11-08
Discount Rates Are Raised to Keep Gold From America
 But Without Avail
BOARDED MONEY COMING
 OUT FREELY IN NEW YORK
High Rates for Money Induce Those Who Have Currency In Vaults To
 Put 1t Into Circulation and
 This Helps Situation. l

New York;. November 7.-rhe contest of the European money markets to re- tiin their gold resources was Indicated by the simultaneous action today of three banks or Europe and call for nieet- ing tomorrow of the governing board of fourth The Bank of England ad- yanced it's rate of discount from to per cent a rate which has not before been reached since 1873. The Bank of France advanced it's regular discount rate from 3h per cent to per cent, a rate for loans on securities at 415 per cent. The National Bank of Belgium ad- vanced it's rate of discount from 5lh per cent to 6 per cent. and Dr. Koch, the governor of the Imperial Bank of Ger many, called a meeting of the govern Ing board for tomorrow which is ex- pected to advance the discount rate of the bank from to per cent.
 These movements in Europe are re- garded as an indication of the ability of New York to command gold and the efforts of the European banks to protect themselves against this demand. Eu- ropes new discounts. however are re- garded as insufficient to prevent the further importation of gold into this country In view of the large credits which are to be called for the shipments of cotton. The high rate fixed by the English bank is not expected to entirely arrest exports from London to New York but is counted on in London to equalize the distribution of the yellow metal among European money centers, so as to offset losses to America by imports of gold from other places.
 The fact that the Bank of France had advanced It's rate. although to only per cent Is considered a recognition of the severity of the pressure on the banks great gold resources This action is of special significance because it is the consistent policy of the Bank of France to afford commerce the benefit of low and uniform rate of discount and even to buy gold at loss unless conditions in the international money market make it necessary to protect the reserve.
 Pressure for Money.
 The stock market reflected the pres sure for money by considerable de- clines today. but these declines were generally expected by bankers. who looked upon the rapid advance in quota tions of yesterday as hardly justified by the situation. There Is. a strong de- termination among the conservative in terests that there shall not be a large speculation for the rise at the present time. They believe that such move ment would not only be artificial and likely to lead to a disappointment. but would result in calls upon the money market which cannot well be met under present conditions. There are no doubt that there are powerful spectators who would like to undertake manipulation of the market but the influence against them Is so strong that 1t will require hardlhood on their part to take any course that is opposed to conservative banking opinion.
 The engagement of gold today brought up the total importation in the movement to $40, ,t25,000 an amount which would permit loan expansion of more than $150, 900 900 if the legal reserves had not been already inn paired. The situation in regard to trust companies is gradually coming normal. The trust company presidents are satisfied that their assets are ample to meet all of their obligations and the other banks will give them all the aid required in case demands on them should continue. Plans for regaining their old volume of business are under discussion, but will require some time for definite conclusions.
 The temporary securing of current cash by hoarding and the desire of the banks to husband tn cir resources is being met very generally according to reports reaching New York bankers by the issue of printed certified checks or temporary interest bearing notes and in some cases by scrip issued by 
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