New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-21
MORE BOURSE PAN|CS
REMAIN A POSSIBILITY
European Stock Markets Firmer
Now than a Week Ago,
and with Less Reason.
TALK OF WAR SPREADING
Recent Decentralization Was in
Ranks of Small Specu-
lators, Not Among
Leading Financiers.
rRr cable 10 The Tribune 7

Leading FlnanClerS.
Thy cable 10 The Tribune
London. oct 2O.-Remarkable indeed
WAS the difference between the stock
markets yesterday and at the end of
last week. Not only has there been
fairly good recovery in prices, but the
difference in tone is extraordinary. A
week ago London and the whole Con-
tinent was in a veritabe panic. and the
market sessions which succeeded were
almost as lifeless as In the middle Of
the holiday season.
The change cannot be credited to the
fact that the dangers of the Balkan
situation had been discounted by the
previous weeks upheavaI for, as
matter Of fact the situation is really
more dangerous now than it was
week ago as until the war was actu-
ally declared by Turkey and the allies
peace was always possible, but now
that the opposing armies are actually
engaged and until peace comes again |
the situation will be constantly fraught !
with danger that the great powers !
may be brought within the sphere of |
hostilities.
All talk of Iocalizing the conflict will |
not change this situation. Diplomacy !
has already shown both It's own utter
failure and the righteousness of the |
so-calIed concert of the powers by per |
hitting a war which was entirely I'M
necessary if the powers had only been |
able TO combine effectually; and If a |
situation arises in which one of the |
powers, notably Austria or Russia, |
considers her interests threatened the |
folly Of the talk of loCalizing the war |
will be shown UP.
A Sombre Outlook.
Virtually the only hope Of localiza |
ton lies in the moderation the allies !
will be able to exhibit in case Of vic !
tory. The danger Of a spread Of the |
conflict is twofold-first, from the am
btion Of Austria, and, second. from the !
difficulty Of making a triumphant army |
see that it has no right to the tangible |
fruits of victory.
Altogether it is nasty judgment 10 !
say that the violent declines Of a week |
ago represented a mere disCounting Of |
the dangers Of the situation. IT was, in |
fact, a simon-pure case Of panic on the !
part Of thousands Of small spectators |
on the Continent, and what was demon |
strated was not the intelligent dis
counting of the future by leading finan- |
ciers, but the extent to which Europe |
in the last twelve months has been |
honeycombed by the fury Of specula-
ton
The real panic among the great fnan-
Ciers has not yet come and darl;
feature OF the situation is that that
possibility still hangs over the markets
Of the world, constituting a menace
which will continue 50 long as the
armies are in the field.
Monetary Situation Good.
The situation as regards the money
market is not at all bad. The Bank Of
England raised its discount rate TO "
per cent and the Banque de France pn'
up its rate to 80 per cent, thus SHOW
ing a highly proper determination 70
protect us STOCKS Of soid agalhs'
e'ehluaHlieS'
o''''' ."e '"s o"''ooN
cold for rgvnt and RraziI erd also If
the fact hat sbort tine AGO the
American exchange rate ruled AZ gold
point, ~ the probability that the de-
mand for currency IN the United States
10 move the crons will continue for
several u,eels and finally of tho fact
that r,or,o,. e., ,,,ora or loss ,,.a,,tad ~,
the Co,t,r.r+ rho nor CON, ratio ,,.iu
indicst. - ta,,l,ors e., >-o,,. vorr, tho,
bankers ir Landau are desirous of
maintaining, strong position and are
unwilling to see much gold Withdrawn
from, fho p,,,r. If t,psIa,d
Tpder ,orrool conditions 8, 10 nroh.-
t,o 81. -, Ut
cold ,,.,.,,d 49, haon cont - tbc
I.r,,oa CO... ., 40, CO.. .l,o ,,boa,
and cotton i,,,rortod boro T-,dor rroe-
ont oa.d,,,a.I &. l.. so.,roh,o ,h.t tho
u.h,.. -, -1.,-- -, o.. J.. 49,.
,.-,,, p''''