New-York tribune., 1907-11-18
FINANCE IN EUROPE.
4MERIC4,S GOLD DEMAND.
Comment in France and Germany on
Situation Here.

Paris. Nov. 17.-Some of the French bankers
who supported the recent futile negotiations be-
tween J. P Morgan & Co. and the Bank of
France to obtain between S2O.OO0OOO and s40-
100000 in gold for direct shipment to New York
consider ii possible that some other method may
be found TO procure gold from the bank direct
TO America.
In certain quarters there IS believed to he a
connection between the attitude of the French
government toward the release Of gold and the
pending Franco American tariff negotiations at
Washington
The financial articles which appear in Paris
the end of each week are entirely given over 10
discussing the growing effect of the American
financial situation upon Europe. All the fnan-
cial writer's agree that the Bank of France could
spare certain amount of gold, but they differ
as 20 how far the sending of a few millions
would relieve the situation The Journal des
Debats" even considers that 1t would he unwise
for America To ask for more gold. Although
the American debt 10 Europe has been greatly
reduced in the last year" this paper says 1T is
still large, and further drain would be likely
to produce a crisis on this side which would
make renewal of credit impossible More ex-
traordnary still is the fact that America, to
procure gold. continues to use the most danger
form of credit, namely. short term loans
optimism which makes Americans each day he
lievc that the situation Will adjust Itself to-
morrow"
The Journal des Dehats' is of the opinion
that the Bank Of England will raise its rate of
discount tomorrow. In restraining further
credit the paper goes on. the Bank of Eng
land may be doing the Americans a service. It
would perhaps be better TO oblige them to solve
the crisis in their own way than to keep up
their exaggerated optimism by furnishing the
means 10 augment their foreign engagements"
Both the Temps" and the Journal des
Debats' doubt whether the amount of money
which Europe could furnish would afford much
relief The crisis. they say is distinctly a credit
crisis. The remedy is a home remedy which
must be applied vigorously IN order that public
confidence be restored. The Temps insists
that the United States should substitute for its
present incoherent financial organization the
central European bank system TO which It is
now appealing for aid
Berlin. Nov 1.-THE American financial stu
alton was again acuteIy felt on the Berlin mar
ket in the last week. An unusual volume of
American bills has arrived here within the last
two days. drawn against shipments of cotton
and grain and the fact that the American
banks are demanding London checks IN pay
ment caused on Saturday unprecedented rise
in the price of such checks. London short bills
also were In heavy demand. The Russian I'm
perial Bank has placed large amounts of Lon
don bills at the disposal of it's banking repre-
sentative here, and these are being offered free
" on the B0rse; nevertheless. London short
bills advanced yesterday five pfennigs. which is
said 10 be without precedent. 1t is expected
that these operations will lead to further de
pletion of the Relchsbanks gold stock for ex-
port The takings for America understood
to have been rather lighter in the early part of
the week. but Friday they amounted to $40
00000O. and it is probable that equal sum
taken yesterday.
The Berlin market expects the Bank of Eng
land TO advance the rate of discount to per
cent tomorrow, and this will force another ad-
vance here Heavy discounting operations
proceeding in anticipation of these actions. 1t
is believed. however that the Rechsbank would
continue its rate at ~ per cent If the Bank of
England took no action. but the feeling is be-
coming general here that the available gold
stock of Europe is exhausted unless the Bank
of France be induced to assist New York.
The American governments fotation of $50
100000 of Panama bonds is regarded as likely
TO relieve the strain on the European stocks of
gold The Berlin market. however. looks for
ward to the coming week with considera BILE ner-
Vousness.