New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-08
Holding Up of Big French
Loan Checks Incipient
Rise in Prices.
TJMID IMPROVEMENT
IS THE FORECAST
Fear Expressed in British Capital
That u. S. Will Shortly Re-
ouire Gold from Europe.
rRy Cable to The Tribune.l

rondon. Dec. THE feeling of I'M
certainty caused in London and in the
principal Continental centres by the
dafeat of the French government on
the bill authorizing the new loan and
the check to the previous well defined
,r,nrovement is now very likely to con-
Time until the new year. However, it
docs not necessarily follow that bad
Conditions will prevail .r i914.
IN fact. rather the ANTICIPATION is. as
aThe Statist" says, that there will be
"a period of rather timid Improvement,
for the feeling that prevails among the
,saders is that they must not go too
,ar-in fact, must feel their feet before
committing themselves too much-but
gradualy the conviction will spread
hat the need for fear is over. Then
70 shall see a return to that state of
mind in which both investors and
speculators will be prepared to take
risks"
One reason for this optimistic atti-
tude is that much money is about to be
borrowed in France, not for the new
outlay, but for the funding Of debts in
Cured long ago and intended to reim-
burse persons who advanced money,
and with the new loan being issued,
these will be in a position to engage in
new enterprises. Another reason is
shown in the large amount Of unem-
ployment reported, notably in Germany
and Austria Hungary.
The trade demand for money is not
as large for 1914 as in 1913. 1t is
thought in England that the United
States should take the lead in the i'm
provement. as she has an immense
credit balance in Europe and her pur-
chases on this side of the water are
bound to stimulate activity. Russia,
too, is in a position to buy largely, as
her exports considerably exceed her
imports.
Further slackening of trade in
France and England is predicted, but
il is not so easy at this time to fore
cast the probable immediate course OF
the money market, since action on the
French loan has been held up, but it
can be said with safety that If the
bill is passed without delay and the
loan is launched before Christmas
&. 30 10 pnanUp
IN the International money market.
But If the crisis is protracted the vast
accumulations of money in Paris col
lected in anticipation Of the loan Will
probably be sent TO London, Vienna
and other centres. This might mislead
some into thinking that money was
easy, but in such case it should be
remembered that Immediately the loan
is assured the money will be taken
out again and returned to France.
Even if, under conditions indicating
plenty of money here, the bank rate
we're reduced there would be con-
aderable withdrawal Of gold.
Russia is now adding largely to her
reserve, following in this the lead or
France, Germany and Austria-Hun-
gary. The Viennese bank wants to
Increase it's supply, but conditions are
not favorable. London experts say
that the financial condition Of the
United States is not as satisfactory
as II was and the fear is expressed that
she will soon ask Europe for gold.
The Banks reserve decreased $3.50
80 now standing at $131 ,421 ,935.
Bullion decreased 1892, 10j, now
standing S1s3, 120935. Call money
ruled on Saturday at "A per cent,
weekly fixtures being at Az, two
. months bills at 5, three months- bills
at Az and six months bills at Az per
cent. The proportion Of reserve to Ia
blities is 54.14, as compared with 54.3S
last week.