The Montgomery advertiser., 1907-11-08
DISCOUNT OF
 GOLD RAISED Great European Banks Call Meeting. STOCKS REFLECT PRESSURE Temporary Scarcity of Current
 Cash Being Met. situation in Regard to Trust Com- panies Gradually Becoming Nor mal--Plans for Regaining
 old Business Discussed.
 
STOCKS REFLECT PRESSURE

the European money markets to retain their gold resources was indicated by the simultaneous action today of three of the large central banks of Europe and call for a meeting tomorrow of the governing board of fourth.
 The Bank of England advanced it's rate of discount from to per cent,a rate which has not before been reach ed since 1873. The Bank of France ad- vanced Its regular discount rate from 1-2 per cent to 4 per cent, and fixed the rate for loans on securities at { 1-2 per cent. The National Bank of Belgium advanced it's rate of discount from Ia per cent to 6 per cent, and Dr. Koch. the Governor of the Impe- rial Bank of Germany, called a meeting of the governing board for tomorrow. which Is expected to advance the dis count rate of the bank from 6 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 pro- tect themselves against this demand. Europe's new discounts. however, are regarded as insufficient to prevent the further importation of gold into this country in view of the large credits which are being created by the ship AAAbt1t VI WnCdb anu CQtLOHs 1H9 ul6n 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 off- set losses to America by imports of gold from other places.
 The fact that the Bank of France had advanced its rate although to only 1 per cent is considered a recognition of the severity of the pressure upon the banks great gold reserve This action is of special significance because 1t is the consistent policy of the Bank of France to afford commerce. the bene- fit of low and uniform rate of dls- count and even to buy gold at a Toss unless conditions In the international money market make it necessary to protect the reserve.
 Stocks Decline.
 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 quo-- by the situation. There is strong determination among the conservative interests that there shall not be a large speculation for the rise at the present time. They believe that such
  ficial and likely to lead to disap- pointment but would result in calls upon the money market which cannot we'll be met under present conditions There are no doubts that there are powerful specuiators who would like to undertake manipulation in the mar ket, but the influence against them IS so strong that it will require hardi- hood on their part to take any course that is opposed to conservative bank ing oDinfOn.
 The engagements of gold today brought up the total importation in the to s40.425,00o. an amount which would permit 8 loan expansion of more than sl5.Ooo.OOo if the legal reserves had not been already impair ed. The situation in regard to the trust companies Is gradually becoming pany presidents is satisfied that their assets are ample to meet all of their and will give them all the aid required In case demands on them should continue. Plans for regaining discussion but will require some time for definite conclusions.
 TempOrary Scarcity Met.
 The temporary scarcity of current cash by hoSrding and hs the GssiTs or tas being met very generally according to reports reaching New York bankers by the issue of printed certified checks or temporary tntereSt~DearlnB uoteS and In some cases by script issued by and other non-bankins 
 This recourse was very generally re- sorted to in the panic of 1893 and prac- tically no trouble arose from any such issues. Most of the script issued at that time was payable after specified peCiod at ninety days or six months. but where Issued by the banks with support of the clearing house unusual ly specified that the paper would be on deposit at clearing house banks. Some question arose at that time as to whether this paper would be subject to the tax of ten per cent Imposed on the issue of notes to cir cuiate as money by individuals or in circulations other than national banks. The question was settled by Attorney General Olney after the panic was practically over in an opinion on Nov, 21. 1S93 The captions of that opinion pretty well express its text that The tax on state banks imposed by the act of February 8. 1875, chapter 35, section l9, applies only to promissory notes and not to other negotiable quasi negotiable papers"
 The individual depositors of the Trust Company of America, both at the main and branch offices were all paid off today.