New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-02
High Bank Of
London. December %.


gold is depreciating in purchasing power.
America and Germany Engiand's chief indus
trial rivals. have been unable 10 keep abreast
With the requirements of domestic trade. They
have called upon British manufacturers TO help
them out in rebuilding San Francisco. in ex-
tending railways. in charging towns and in re-
constructing navies. The iron and steel trades
nave been working at high pressure since jan
uary, and during the last three months sup
plies OF material have been short and nome and
Foreign markets understocked. The fronmasters
and steelmakers of the kingdom are sold out
for months in advance. and even scrap iron
commands premium
Higher prices for material have affected all
the manufactures of iron and steel. but even
with a rising market there is an Increased de-
Inand for all classes OF goods. from galvanized
IRON TO nails and screws. With America re-
pairing the damages from earthquake and Ger
many pl1nging into railway construction and
eunding operations on unprecedented scale.
England has had a year of phenomenal busf
ness activity. 1t has been highly proftabIs
trade With an increased OUTPUT AZ batter
prices. and with few labor complications and
strikes. there is fine promise of high dividends
in January.
The prosperity OF the textile trades OF Lam
cashire and Yorkshire IS equally marked Tho
and its cotton industry can only be In a -four
ishing state when that populous dependency Is
free from calamity. This has been a good year
in India, without famine. plague lrouth or
catastrophe, and its imports from England have
been steadily increasing. The wOoIen in
dustries OF Leeds. Bradford and HuddersfieId
have been as profltably employed as the cotton
spindles OF Lancashire. with a steadily rising
market for manufactures. The rise OF wool
values is only partly due TO increased demand
| The supply OF wool has been diminishing in
Australia, Argentina and other sheep raising
| countries during the last five or ten years and
there is now less OF It than is needed for keep
ing the woollen and worsted mills of England.
France. Germany and America in full opera
! ton. The Bradford manufacturers. after COM
planning for several years Of the invasion of the
market by American buyers. are now reluctantly
admitting that their own Judgment has been at
fault and that there has been serious reduc-
ton OF the wool clip, which he accounted
for only in one way-a shrinkage in the worlds
1ocks which certainly amounts TO One-tenth
and may be as much as one-seventh- High
prices in the woollen trade are likely to prevail
until there IS revival OF sheep farming on a
large scale. and Of this there are already signs
both in England and in Australia.
The remarkable activity of all the industries
in the kingdom except agriculture has created
a ceaseless demand for money. This has helped
TO raise the bank rate during the closing months
OF the year. but il IS not the only explanation OF
the per cent rate. Money has also been
wanted in other countries and London banks
have financed large opera tons for foreign ac-
counts. Accommodation has been supplied for
Russian loan OF f13OOOOOO as large a sum
has been lent to America for special purposes.
and the passage of conversion bill by the
Brazilian Legislature has started demand for
gold from that quarter which is likely to con-
tinue until June These big Withdrawals OF
gold have forced the Bank OF England to raise
the rate in order to prevent the depletion of the
reserves The precautions have been SO sue
cessful that the reserves are higher in December
than they were in January: but money has been
dear when large masses OF it were needed for
legitimate business and for the enlargement OF
works
The production OF gold is likely to surpass all
records for this year and TO exceed S4O0O00O00;
and the bulk OF this enormous supply comes TO
London and does not remain in the country
With a production four times as great as IL was
quarter of a century age. the gold reserves OF
the Bank Of England have remained stationary.
and a shrnkage is prevented only by keeping
the rate of interest abnormaIiy high In these
circumstances there is an increasing agitation
which Will enlarge the gold reserves of the Bank
OF England and secure the support OF the joint
stock banks in emergencies. The Chancellor OF
the ExcheQuer is also considering the expediency
of bringing into IL notes as a s1eans OF
attracting gold.
Stock brokers have been complaining OF bad
business throughout the year. The high rates
commanded by Money have diminished specu,a-
ton and kept the market in a stagnant coadi-
January. when enlarged dividends viii be de-
clared by the majority of industrial corporations.
they are expecting considerable investments in
homo securities. railway AMI industrial. An
improvement in consols, which have remained
low throughout the year. is not expected with
any degree OF confidence. as the interest Is too
low to attract investors. During recent months
there has been more disposition 20 buy colonial
and foreign than home securities. although gen
sounder or credit more trustworthy. Mining
stocks have not recovered their popularity. not
withstanding the increased production OF gold
in South Africa These stocks are avoided
account OF the political uncertainties with which
the new colonies are clouded and the difficulties
OF the labor supply. The mining interests OF the
Rand have suffered heavily from the change OF
government in England The period of suspense
in the organiza ton of the new colonies has been
prolonged and che continued employment OF
Chinese labor has been rendered irsp-ac tica6,e
Within the kingdom labor conflicts haze been