The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-08

New York, Nov. THE contest of
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 a call for a meeting tomorrow of
the governing board of a fourth. The
Bank of England advanced it's rate of
discount 6 to Z per cent, rate which
has not before been reached since 1873.
The Bank of France advanced its reg
ular discount from 49, per cent to 4
per cent, and fixed the rate for loans
on securities at an per cent The ma
tional bank of Belgium advanced its
rate of discount from 512 per cent to 8
per cent, and DIR. Koch, governor of
the Imperial Bank of Germany, called
a meering of the governing board for
tomorrow, which is expected to ad-
vance the discount rate of the bank
from TO per cent. These move
ments 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.
High Rates Insufficient.
Even these high discount rates, how
ever. 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 shipment of wheat and cotton. The
high 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 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 4 per cent, is
considered a recognition of the severi-
" Of the pressure upon the bank s
great gold resources. This action is
of special significance because ii is the
consistent policy of the Bank of France
TO afford commerce the benefit of a
low and uniform rate of discount, and
even 10 buy gold at a loss unless con-
ditions in the International money
market make it necessary to protect
the reserve.
Spectators Held in Check.
The stock market reflected the pres
sure for money by considerable de-
cIines today, but these declines gener-
ally were expected by bankers, who
looked upon the rapid advance in quo
tations of yesterday as hardly justified
by the situation. There is a strong de-
termination among conservative inter
ests that there shall not be a large
speculation for a rise at the present
time. They believe that such a move
nent would not only be artificial and
likely TO lead to disappointments, but
that it would make calls upon the
money market which cannot we'll be
met under present conditions. There
are. no doubt. powerful spectators
who would like to undertake manipu-
lation ia the market, but the influences
arrayed against them are so strong
that It viii require hardihOod on their
part to take any course which is op-
posed to conservative banking opinion.
Engagements of Gold.
The enga cement of gold today
brought up the total importation on
the present movement to $40, 425, 000, an
amount which would permit loan ex-
pansion of more than $3.50 100000 If the
legal reserves had not been already
impaired. The situation in regard to
the trust companies is gradually be-
coming normal. The committee of
trust company presidents is satisfied
that their assets are ample TO meet all
of their obliga tons. and will give them
I'll the aid offered in case demands, on