Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-11-08
Continues to Pour Onto
Shores Of United States,
Europe Hates 10 See L 60 and
Raises the Discount Rates.
Total lmportatlons 10 This Country
S40,425,000.

New York, Nov. THE contest Of
the European money markets to retain
their gold resources was indicated nv
the simultaneous action of TODAY Of
three Of the large central banks Of
Europe and call for a meeting TO-
morrow of the governing board of "A
fourth. The Bank Of England ad-
vanccd its rate Of discount from 6 to I
per cent. rate which has not before
beon reached since 1873. The Bank OF
France advanced its regular discount
rat" from BIZ per cent. to per cent
and fixed the rate of loans on sec,lr-
tiles At AZ per cent. The National
Bank of Belgium advanced it's rate Of
discount from 5k per cent to 6 per
cont. snd DR. Koch, the governor of
the Imperial Bank Of Germany called
a meeting Of the governing board for
tomorrow which is expected to advance
the discount rate of the bank from
e to . FER cent. These movements in
Europe are regarded 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
Even these high discount rates. how
vent the further importation Of gold
into this country, in view of the large
credits which are being created by the
shipment If wheat and cotton The
hign rate fixed by the English bank is
not expected to entirely arrest exports
from London to New York, but is
counted upon in London to equalize
The distribution Of the yellow metal
n
70 cfSet losses to America, by imports
Of gold from other places. The fact
that the Bank of France had advanced
its rate although to only per cent. is
considered recognition of the severi-
ty of the pressure upon 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 a low
and uniform rate Of discount and To
even buy gold at a loss unless condi-
tions i'll the international market make
il necessary to protect reserve.
Tie stock market reflected the pres
sure for money by considerable de-
clircs today. but these declines We're
generally expected by bankers who
LOOKED upon the rapid advance in quo
fed by the situation. There is a strong
determination among the conservative
brokers that there shall not be a large
speculation for the rise at the present
time.
The enga gcments of gold today
brought up the total importation on
the present movement to $40, 425. 900. an
amount which would permit loan ex-
ransicn of mere than s150,000.0 900 if the
legal reserves had not been already i'm
paired.
The situation in regard to the trust
companies is gradually becoming nor
NAL. The committee of trust company
presidents is satisfied that their assets
are ample to meet all of their Obliga-
tions and will give them all the aid re-
quired in case demands on them should
continue. Plans for regaining their old
volume of business are under discuss
sion hut will require some time for def
mite conclusions
Tho temporary scarcity Of currency
caused by boarding and the desire Of
Continued on Page Twelve)