New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-09
LONDON MARKET STRONG
Tone improved as Outlook for
Peace Became Brighter.
MONEY THE CHIEF FACTOR
Easy Rates, 1t Is Pointed Out,
Cannot Exist During Big
Expansion in Trade.
LB. cable % The rrihnn.


London. Dec S.-The Stock Exchange
closed the week IN more cheerful
mood the tone OF the markets becom.
ing increasingly strong as events in
the Near East increased the proba biIlty
that peace between the Balkan allies
and Turkey would be concluded with
out much further delay. II is be-
lieyed that an arrangement satisfac-
tory 10 both sides will not be difficult
10 reach.
The course Of the AustroLSeryian dis
cussion is also regarded as favorable
The importance Of the speech OF the
German Imperial Chancellor was real
ICED. but IL was generally Interpreted
to mean that IT was the desire OF Ger
many 10 induce Servla 10 accede 10 the
wishes of Austria. and that il was not
made for any infammatory purpose.
The conviction is strongly held that
some ARRANGEMENT satisfactory 10 both
Austria and Servia will he reached.
The political situation seems 10 bs
losing its interest az far as the mar
kets are concerned. More attention was
paid during the week to the monetary
than 10 the political position. With re-
gard 10 the monetary position the fact
that the banks OF New York n week
ago had n deficit OF reserves was inter
preted 10 mean that as far as the
United States was concerned no re-
SUMPTION Of activity could be expected
until the new year brought cash back
to New York. on the other hand. the
activity OF trade in the United States
and the excellent railway earnings are
expected 10 prevent any serious de-
cline In prices in American securities
Early I'm the week bankers were will
ing to discount more freely and the
rate for three months drafts fell 10 a
shade undo. ~ per cent. -Four months
paper ruled at ia per cent and six
months drafts 10 per cent. but in the
hardened and the rate for three
months bills became rs per cent. four
months bills ~ per cent and six
months. bills A. per cent.
The higher rates are q result OF
simultaneous demands for gold for
Egypt. India and Brazil. as well as
from the fact that nearly all the gold I
arriving from South Africa has been
purchased for the United states. The /
aggregate demand on London for gold /
last week was Sl1 $4,000. Of which |
only 100000 was satisfied by ar
rivals from abroad.
Naturally the large withdrawal ere
ated fresh discussion as TO the posi-
bility of a per cent bank rate. and |
the discussion may become still !
stronger this week IL. as seems proba-
bic. there is To he a reduction OF some
thing life 100000 in the bank re-
serve.
The market is not without hope. how
ever. that a 6 per cent rate will not
become necessary. The demand for
Brazil and for Egypt is normal and
be avoided but the New York
and Indian demands are more under,
control and can If necessary be pre-
vented.
OF course the demand for money at
the present time all over the world is
strong. IT is impossible for
trade 10 be active as II Is and have
easy money. but the market is hopeful
that tho demand for the current month
will not be excessive or beyond what
can be dealt with. and that easier con-
ditions will he witnessed In the new
wear.