New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-21
ENGLISH CREDIT HURT
Financiers Troubled Over the
Steady Fall of ConsoIs.
SEARCH FOR THE REASONS
Suggestion Made That Com
mission Be Appointed to Find
Causes and Remedy.
rBy Cable to The Tribune. ]

London. July 20.-The stock market
,,ra,ns apathetic. Little business is
done and price movements remain
small. Home rails are unaltered, but
slight advances are recorded in Ameri-
cans, principally on crop showings.
Small loans until Monday and for the
week we're placed at 25s per cent. Dis
counts are unchanged, with no relaxa-
,,on in rates expected until supplies Of
loan money become permanently more
n,sntiful. Of which there is no present
prospect.
Consols recovered an eighth, TO 14k
for the account and "A 3-16 for money,
bit the gravity of the situation Is In
no way lessened. Various explanations
are given for each new drop in the
nrice of consols, but whatever may be
advanced as a reason for the moment
the fact remains that the value Of Eng
lands premier security is steadily fall
ing.
The latest decline is attributed to the
news that Italian warships had entered
the Dardanelles and the possible clos
ing of the entrance to the Black Sea
and the spread of hostilities. 1t is also
attributed in part to the sale Of S1s,-
100000 in s per cent exchequer bonds
nv the National Telephone Company
10 the Rothschilds at sSi5, with the ex-
mediation that further large amounts
OF exchequer bonds will come on the
market soon, when the telephone arbi-
tration is completed. If the latter rea-
son Is sound, a further fall may be
looked for with the fresh issue Of ex-
chequer bonds.
In the mean time, while day TO day
reasons are being sought for the fall
In prices, the credit Of the country Is
being constantly and seriously impaired
and no steps Of any consequence are
being taken to ascertain the causes or
10 find the remedy.
The opposition to the present govern
ment lays all the blame on Lloyd
Georges financial system, or lack Of
system, and the constantly increasing
burden of taxes, with Indictment of the
masses against the classes.
Lloyd George retorts that the depre-
citation began more than q dozen years
ago, long before the present govern
ment came into power The war Of
words goes on, and nothing is done,
while the country undoubtedly faces a
most serious situation, for the depre-
citation Of consols is more than a mere
matter Of curiosity and wonder in
financial affairs.
As business men always hitherto
have been able 10 fall back on consols
IN time of trouble, the Bank of Eng
land being willing to lend up to a very
narrow margin on consols, the present
situation, with prices steadily falling,
is very different. Not only private
banks, but the Bank of England must
hesitate 70 accept this security, and
The foundation on which the vast
superstructure of credit throughout the
country has been reared is seriously
injured.
The suggestion Is now made that the
Chancellor appoint a body Of men Of
such competence and high character
that they will command the confidence
Of the whole country to investigate
the causes and the best means of
checking the downward movement, and
Il seems imperative that some such
step be taken.