The Washington times., 1911-09-24

balance right.
General Industry and Unrest.
According to the trade authorities
general industry shows but little change
and the country Is still operating on a
scale well under producing capacity.
Naturally, the long-continuSd unsettle-
ment of the stock market has had an
adverse. effect on certain Industries
which, for some reason or other, are
more or less directly Influenced by oc-
currences in the financial market. This
Is particularly true of iron and steel,
from which quarter come reports of a
possible necessity of wage reductions.
This would be peculiarly unfortunate at
the present time, as many of the neces-
saries of life are still very high, -four
and meat seem destined to advance. and
sugar and coffee are at the zenith. The
prospect OF wage reductions at time
OF high prices is strongly suggestive Of
possible disturbances and social unrest,
such as seem sweeping all Europe.
For such developments as have taken
place in the European money markets
within the week one finds no parallel
since October, 1907, when the disturb
ances in this market placed all Euro:
pean financial centers on the defensive.
On Tuesday the Imperial Bank Of Ger
many marked up its official discount
rate from to per cent, following a
poor showing of that institution which
reflected a loss of 100000 marks In
specie. an increase of Is, 100000 marks in
circulation, and of 16c $1,000 marks In
loans. The banks OF England France,
Austria. and Belgium followed this in
quick succession on Thursday. marking
up official discounts, respectively, from
. 10 per cent. from to 81 per cent,
from to per cent, and from AZ to 51a
per cent. All market discounts 'ad-
vanced rapidly, and the entire procedure
suggested a highly shamed credit situ-
alton abroad which may reflect upon
this market.
Money Market Affairs.
Germany appears to be the chief
source of weakness, and that there is
a deep feeling of distrust Is manifested
In part by the fact that the Bank of
England rate advanced, despite a re-
serve showing OF about 81 per cent,
while consols sold down to Tii., the
Low est point since 1881. In the mean
while Germany has been clamoring for
FUNDS in this market, and Is said to
have secured about so, COO, 600, paving as
nigh rate on Friday as per cent for
Two weeks money. Quite naturally
these defensive operations in the money
market abroad have reflected in a sharn
advance In demand sterling here, and A
decline IN cheques at Paris ou London
SO mat the possibility OF gold exports
from thls country 20 Europe are freely
discussed. Whether or not this may re-
nect in changing the tendency OF
the local money market remains very
much in doubt
The prevailing opinion is that, natu-
lalE, with quiet business and stock
market Liquidation. money Is likely TO
heavy, but a firmer tone Is
noted in the market for commercial pa
per, though business Is quiet in that
quarter, and some persons profess to
see prospect of higher rates here as n
esult OF the foreign strain. The bank
statement "a today reflected very little of
oIe nquldatlon OF the week. The re-
port Of actual conditions showed a CON
traction of $,194.0o0. while the average
reForted a decrease of but 1896. 100. Other
changes in the actual statement were a
decrease OF $2,102. 900 in cash and legal
,ender holdings, an increase of S5,33T ,OO6 i'm
net deposits and decrease Of syO6. .250 in
surplus reserve. Clearing house meme
oers. however. report S24. .295, 100 OF re-
serve IN excess Of requirements.