New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-07
Berlin Hardest Hit, Small In
vestors Losing Aggregate of
Millions of Dollars.
LONDON MORE OPTIMISTIC
Premier Asquith's Grave Words
as to the Balkan Situa-
ton May Bring Prices
Down To day.
TBy Cable to The Tribune. ]

London. Oct. 6.-The chief influence
on the European stock markets last
week was, Of course, the Balkan situa-
ton. In the earlier part Of the week a
condition almost Of panic resulted on
the Continental bourses from the fear
of war, Berlin, Vienna and st. Peters,
burg being the chief sufferers.
Berlin felt the effects most, though
Vienna Is nearest the seat OF trouble
and Austria and Russia are the coun-
tries most in danger of becoming In
yolved. In Berlin small investors lost
millions Of dollars through the hurried
throwing over of securities, and the re-
suits I'm Vienna and st. Petersburg
were only less serious than In the Ger
man capital. The panic began on
Tuesday and lasted through Wednes-
day, since when a tendency toward
steadiness and recovery was mani
tested, owing to news Of the ending OF
the war between Italy and Turkey and
to the growing belief that the trouble
lied II II cannot be prevented.
Paris and London held more opti-
mistic views than the other European
centres and consequently suffered less.
The situation in London Is chiefly one
OF waiting to see what will happen, as
(, is not felt that there is much danger
of England being drawn into the war.
Premier Asquith's grave statement on
Saturday, however, may produce a Diff
ferent feeling when the market re-
opens tomorrow. At present, and taxi
ing for granted that the situation In the
Balkans will not produce serious re-
suits for the peace Of the world, II
seems that the chief factor in the Eng
lish markets during the next Few
months will be the turn which British
political events will take.
Apart from the Balkans, conditions
throughout the world are full OF prom
Use. Crops are abundant and trade Is
showing activity. The earnings Of rail-
WAYS everywhere are unprecedented and
profits in all descriptions Of enterprises
are unusually large, but in England at
all events there is much uneasiness
over politics. which Premier Asquith's
speech on Saturday will not tend 10
allay. without stating any definite
policy the Premier foreshadowed gen
| eral attack on existing interests, based
| on changes Of some kind in the land
laws. At the same time he acknowl-
edged lat the new policy was un-
formed. which means that the outlook
| is for a period OF experiment II the
present government remains In power.
1t Is not unlikely. therefore, that In
these conditions British investors VIII
turn to America to place their money.
and American financiers will have an
excellent opportunity in a short time TO
sell again on this side Of the ocean the
securities which Europe threw over
board so freely during the panic last
week.
The situation in the money market
also depends chiefly on the outcome OF
the Balkan difficulties. A week ago
America was the chief centre OF inter
est. and at the beginning Of the week
Il seemed as though the American de-
mands for gold, which had apparently
begun with a rush, would be heavy.
The sudden development OF the Bal
kan crisis. however, with Europe sell
ing American securities. jumped the ex-
change to q point where America could
not afford TO buy gold. This saved the
situation temporarily from that quar-
ter, but II the Balkan crisis passes
without real war America may again
come into the market for gold, while
on the other hand Europe may demand
| gold In case diplomacy fails.
| From every point OF view much de-
nends on the situation in the Neal
East. The bank rate remains at pei
cont but Il is by no means improbable
that an advance to VIII become
necessary I'm view Of the new situation
Heavy Withdrawals OF gold for Egypt
which is now actively In the market
with purchases Of bar. gold by America
and the outflow Of cash to the country
at the end Of September. brought tho
reserve down s175O0,OOO to $l39,'
O15OOO, while tho stock OF gold was re-
duced to S194, 10000. The proportion
Of the reserve to liabilities has faller
from 81 80 per cent to 1874 per cent.
Despite general conditions money re-
NAMED easy. with overnight loans a
less than per cent and weekly fixture:
at 2L. Discounts hardened a trifie, two
months bills being quoted at 81s pei
cant three months bills at 37s. ant
four and six months paper at . 1910.