New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-11
Foreign Financiers and Public
Cannot See How We Are
Going to Avoid War.
EXPECT PROSPERITY LATER
Look for Next Year To Be a
Good One for Brokerage Bust
ness-Investors Begin to
Put Money Into Stocks,
rBy Cable TO The Trioune.l


London. Aug. 1O.-The definite reach
ing Of a peace agreement in the Bal
Lans rendered the stock markets even
more cheerful last week than the week
before. OF course. on account OF the
holiday season and the near approach
If the settlement in addition business
was small. but the tone of the market
was all Of the most cheerful kind, ex-
rent in a few spots, the most notice
able Of which was Canadian Pacific.
Berlin. which has always been such
q large buyer Of that stock, seems to
he thoroughly tired of it, and the price
comes over lower every day. making
this the weakest point in the markets
Of to-day.
The Nexicans must be left out Of this
generalization. With the situation
existing between the United States and
Mexico there could not be anything ex-
cent depression in that market, and the
effect was felt all through the markets
10 some extent in the latter end Of the
week
The fnanciers and public here take
the most gloomy view Of the Mexican
situation and are unable 10 see how
war can be avoided. This may be
pleasing in the long run. as Europe has
long wanted the United States TO take
control Of Mexican affairs. as that
would insure a stable government and
rescue the great European investments
in that country. OF course, II is
realized that q war would take time
and do great damage to the country.
and though American Intervention
would be of tremendous future benefit,
il naturally means present loss and
depression.
in the mean time the European money
markets are becoming steadily easier
and 1t looks as though there would be
a glut Of money a year hence. Fifteen
million dollars in gold arrived from
Brazil Friday and Saturday. too late
10 show in last weeks bank state
ment. while 100000 more is due
Monday or Tuesday. OF course London
will not set all this; but considerable
Will y 10 Paris, Berlin and other Con-
tinental centres, which Will be very
good thing in view Of the quarterly
settlement on the Continent which is
soon due. Still more. it provides an
indication Of what 10 expect IL the
next few months.
Conditions are unfavorable al present
70 q reduction in the rates OF the banks
Of England, France, Germany and
Austria: but the stringency in money
this year severely checked trade
throughout the world, and good many
countries are feeling the necessity Of
renting gold in the absence Of other
forms of exchange. The accumulation
from this source as we'll as the supply
of new gold from mining countries,
is very likely 10 bring about next year
the glut spoken Of. a plentiful supply
Of cheap money, OF course. Will mean
a renewal Of activity in speculation,
which means upward prices.
Present appearances argue for
prosperous money making period in the
stock markets next year. There has
been considerable evidence the last
week that sums laid by by investors TO
take advantage Of the markets at low
ebb are beginning TO come out and
that the wise men are assuming a
strangle-hold on the future.
Money was easy Saturday and loans
until Monday were made at 212 and 3
per cent and weekly fixtures at 3.
Discounts eased off, being quoted for
sixty days at ga three months, at 3D.;
four months, at AIS. and six months, at
4ss.
On account Of the great amount Of
gold taken by the provinces for the
holiday season the Bank Of England
showed q loss in both reserve and gold
stock for the week. The reserve fell
S1,s45,OOO TO S137 $50, 900, while the
stock Of gold declined $l.355,OcO to
S195,O70OOO The proportion Of reserve
10 liabilities is $500