New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-25
uouefuI Feeling, However, Re-
naming Strong-No Mar
ket Setback Is Recorded.
TIME TO TAKE THOUGHT
cormany's Decision to Increase
It's Gold Reserve, and Posi-
BILE French Loan, Dis
turbing Factors.
rBy Cable TO The Tribune. J


London Aug. 24.-Uncertainty with
.rd 70 the Turkish situation and
,be warlike attitude Of Turkey had
that adverse effect on the stock
markets last week, preventing the con-
lance Of the advance so auspiciously
begun in the first half of the month
So, the hopeful feeling is still strong
enough, so that at least no general set
,.S has been recorded, even if the up
ward tendency is checked.
psrbaps II is as well that there
,nou,d be a temporary halt so that
,,oa may be taken for a consideration
~ the situation. Several points indi-
..,s that the time is not yet fully ripe
tor a real bull market. For example
~. Rank Of England achieved highly
favorable position last week. compar-
IN, sdvantageously with that Of year
,so. but examination shows that
,s,es mart OF its gain in gold stock and
reserve was due 10 the return of cash
from the provinces, and that only
email proportion of the gold received
came from abroad. so that in fact the
hank IS not greatly strengthened to
meet the usual autumn commercial de-
mands from the provinces, added TO the
heavy calls which are almost certain 10
come from the Continent.
Germany is still much in need OF
gold. both because of the approaching
quarterly settlement. for which prepa-
rstions have already begun, and be
cause the Reichsbank some time ago
announced its intention TO strengthen
It's gold position very considerably, as
II is recognized that it is useless Tor
Germany so hugely to augment her
army without al the same time laying
up the financial sinews of war. The
accumulation Of gold by the Reichs-
bank is still going on, and this, ADDED
10 the preparations for the settlement
means that German requirements at
this time will be pressed with more
than usual urgency.
France also is making military
preparations which require a large
amount OF money. There is talk that
a government loan of huge proportions
will soon be issued in France, and
while this may not materialize until
the first Of the year and while the pa
triotism of the French people can be
depended on in the face Of the military
moods of the government 10 release
much of the wealth now held in hiding,
still il should be realized that the
French governments programme un-
doubtedly means that Paris will be an
active competitor in the worlds money
markets for purposes other than com
mercial
Altogether this is very good time
IN sion and take thought. The time
has not yet quite arrived when the
worlds money is on the eve of return
ing to commercial channels, but the
governmental spirit Of militarism Will
insist on being satisfied first. There
fore the prudent man will restrain
himself yet a little while and wait pa
tently the time for the true revival
Meantime, those with cash 10 spare Will
ind this their opportunity to acquire
,gIt-edged securities at bargain counter
iprices.
The Bank of England last week IN
creased its GOLD stock S6,2J0Ooo, TO
,s2l1, 10000, and increased ITS reserve
1926, 600 10 S157.5OOOoo. The ratio Of
reserve TO liabilities advanced to 0S.oZ.
Discounts eased off, sixty-day bills
being 3 GIG per cent, three months
bills 3a., four months bills 1o-lo'
and six months bills 3-16 per cent.
Call loans were 21z and weekly fixtures
"a per cent.