The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-11-07
Bank of England Again Boosts
Its Discount Rate.
Still the Demand for Gold Does
Not Stop.
FEELING THE PINCH.
Markets Are Showing the Ef-
feet Of the Condition.
Squeeze Is Expected to Extend
to the Continent.

London, Nov. THE directors OF
| the Bank of England this morning put
up the minimum discount rate from {
to z per cent. The only thing which
could nave averted this heavy rate
would have been assurances from re-
sponsible quarters in New York. that
the situation there. which it is recog-
ntzed is due to the exceptional de-
mands upon capital in consequence OF
The great commercial activity in
America, is sufficiently well in hand to
warrant the expectation that there
would be an early cessation of the
| gold drain on this market. In the alb
sence of such an assurance the Bank
| Of England utilized the only weapon
at hand to protect its reserves.
1t is realized however. that even
| this high rate may not prevent ship
ments of gold to New York. but it is
hoped that it may attract the metal
from abroad in sufficient quantities to
restore the equilibrium. The step was
doubly necessary as the bank must
nurse its supplies just at present for
the autumn cash requirements as well
as the usual Egyptian demands and
there Is a possibility of demands for
gold from Argentina.
The last occasion when a per cent
rate was enforced by the Bank of
financial troubles on the continent
and in America. On that occasion the
rate eventually reached 8 per cent,
but quickly fell to 4 "A.
The local business community is
bound to feel the pinch and the finan-
ciers anticipate that the drastic rate
will cause an even greater squeeze in
Germany with a consequent increase
of the discount rate of the Imperial
hank and selling orders from Berlin.
The announcement of the increase
of the Bank of England's rate by
full point had a, strong effect on the
stock exchange here, consolS which
opened 3-16 higher owing to the set
tlement of the railway dispute, imme-
diately fell half a point. Home rails
started one to four points dearer but
lost most of the advance within few
minutes. American rails had a SINH
lar action. The opening prices ruled
around parity, but a drop of point
followed Immediately after the pub
lication of the bank rate and selling
brought quotations at noon down 1 to
points lower than yesterday.
1t was not until the bank statement
was issued that the market fully real
lied how heavy had been the drain on
the gold reserve. The figures showed
the weeks decrease to be f3,138,807,'
the total reserve being f17,694,7
against $40, O,S33,602 last week and
f19,O76.395 at this time last year.
There were inquiries in the market
this morning for another f1,25O,OO0 In
gold for America.
Bank of France Follows.
Paris, Nov. THE Bank of France
today raised It's discount rate from o15
to 4 per cent.
At the same time the Bank of France
advanced the rate on loans from 4 to
AZ per cent.
Prices Weaken at Berlin.
Berlin, Nov. Prizes on the bourse
advance in the Bank of England's dis
count rate.
Clearing House Checks in Chicago.
Chicago, Nov. members of the
Clearing House association decided to
make all necessary preparations to is
sue clearing house checks last evening,
in small denominations circulating
m edium. The association, however,
left it with the clearing house commit
tee to decide when the checks should
be issued. 1t is expected that the
checks will be out within few days.
Bank Scrip for Los Angeles.
Los Angeles, Nov. AT a meeting
of the clearing house committee yester-
day it was decided to issue scrip in
order to avoid trouble locally during
the present financial difficulties.
Printers are busy preparing the en-
craving ordered and it is expected thar
available at once. Under instructions
issued at the meeting scrip will be is
sued in denominations of 81, 81, So,
$40 and $40.
More Gold Engaged.
New York, Nov. THAT the end Of
the movement of the gold from Eng
land to America has not been reached
was shown today when Goldman, Sachs |
& Co. announced the engagement of
81 1000 for import from London. |
81 ,625, 1000 for import from London. |
Kuhn, Loeb & Co. also announced that |
they had secured 100000 in Europe |
This makes the total for the movement |
$39, 900.
Sending Out Money.
New York. Nov THE subtreas-
ury today transferred for banks cur |
rency to the amount of $1,137,OOO. Of |
this amount sS50.000 went to San
Francisco, $4,000 to Philadelphia, |
100000 to Denver, and $4,000 to |
New Orleans
Gold Coming In.
London, Nov. 7.-Bullion amounting |
to 1210, 600 pounds was taken into the |
Bank of England today and 237, 900 |
pounds was withdrawn for shipment to |
the United States.
Bombay Raises the Rate.
Bombay, Nov. THE rate of discount |
Of the Bank of Bombay was raised to-
day from 4 to 5 per cent.
MONEY FLOWS WEST.