The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-10-30
sages Some Important Development and They Are Noq
LESS ONE-SIDEDNESS TO MARKET.
BUT 1T is STILL UNDER CONTROL
Continued Evidences of Mastery Ability Speculative Manipuas
Money Situation Give London Bush Opening
the Way Checking Industrial Recession
BY JOHN GRANT DAFER,
Special Financial Representative Munsey Publications

severely. and so lid the corn law agIta-
Llon, and the -hartist movement. on
= hlch occasion seventy-nine years ago,
ihey last sold as low as 1874, this week S
low price.
What does this unusual depression in
cohsuls toreshadow now? In the nine
ties they sold as high as 49, There
mas been no time in the whole history
or the consols, that a great change in
price has not been associated with some
Hlghly important development. As in
ulcaJed above these DEVELOPMENTS have
frequently been OF an economic or indus
tIIdI character II IS quite true that the
BOer war greatly increased the British
debt and that the low interest rate az
ne security, 25z per cent, renders il un-
atlIaCtlVe Tor personal investment. now
lhdL the nigh cost Of living and the in
creased income tax entail such burdens
on EngliShmen- II is also true that
amendments 10 the British trustee acr.
enlaTBlng the scope Of trust investments
10 include some higher interest-bearing
= SO t government securities, has had
a harmful influence
Is It Impending Change?
These may be considered reasons
enough for the depreciation OF tho
worlds premier security. and vet tn
suggestion remains that there NAV be
other causes VIII future history poInr
10 the prevailing low price OF cansols as
Ioreshadowing some great change in
BRITISH economic or governmental
policy, or permanent change In in
terest rates2 If the latter should prov-
the case the decline in consols. FORE
shadows dearer money ,he world over.
and a relatively create yield on in
Gestment securities, than in the Dgsf
COAsols, recovered slightly from The low
point before the week s end bun with
GUT doubt the depression Of rbt. ze~rIrftv-
mas directed The eyes OF the whole fnar-
clal world 10 the London monetary sim
dllOn- The Joss 10 that market through
the depreciation OF COuSOls is enormous
as every bank. financial institution and
charitable institution, the Dosta' saw
lhEa banks. many commercial houses
ana trust estates have investments or
holding therein From time immenOriaI
IN London they have been used as. reserve
ana lOaterS. that is securities which
could be sold under any market cOnfI-
ton, with little loss. to secure ready
funds.
Quite naturally. with the severe break
IN cOnsols. and the advance in call
money IN London TO 5la per cent. there
has been no abatement Of interest Ia
The money market on the part Of the
banking community While betOkerfng
strain many OF the developments Of he
week have been of a corrective nature
and are working iu the direction of re-
adjustment. Thus the Bank Of France
has been extending assistance 10 the
Bank Of England by GisCountinE a large
volume Of three months British bills.
and sending gold direct 10 Eeypt This
was IN consequence Of the further loss
OF $3Z5,0oo gold by London. which
brought the total bullion holdings %
the bank down 20 $lj5, 0o0.C00. or S250C0t1
less than was held AT this time I'm 1913
France also extended some relief 90 this
market by purchasing $1,000. 600 one
year Michigan Central S per cent notes.
in lieu Of the longtime bonds of this
road, which, In consequence Of uOIiucai
developments here. Paris declined 20
purchase some months 20. Although
call money ruled very high In London.