New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-06
LONDON MARKET GETS
AN ATTACK OF NERVES
Deadlock in the Peace Confer
ence Dashes Buoyant, OptI-
miStic Trend of Prices.
AMERICAN SHARES WEAK
Monetary Outlook Unexpectedly
Gloomy, Better Conditions
Depending on Demobiliza-
ton in Eastern Europe.
fBy Cable 10 The Tribune. ]


London, Jan. 5-The stock market.
which began the week with buoyant
and optimistic tone, ended in a subdued
and nervous condition. owing to tho
acute crisis which Balkan affairs have
now reached. The general advance,
which began in anticipation Of a speedy
conclusion of peace. came to an abrupt
end with the opening OF yesterdays
session. but the amount OF business was
extremely limited and no great declines
In prices were witnessed.
Consols again gave way. falling to 40,
but part OF the loss was recovered.
Americans remained depressed and un-
interesting. and the sagging tendency
developed in the absence Of support
The money market, which had begun
10 brighten up, looks gloomy. despite
the considerable amount OF ready cash
in the Street and the easy discount
rates. Call loans opened at 3le per
cent, but fell TO 2l2 per cent, while
weekly accommodations brought 3l2
1 9-16 per cent, three months bills to
Az per cent. four months bills to 4 I-l6
per cent and six months bills 10 3-l8
per cent.
The general market had been count
ing on still easier conditions, and par
ticularly upon a more satisfactory stu
alton on the Continent with the APP
proach Of peace in the Balkans. The
end OF hostilitios would mean demobi-
IiZation in Austria ana Russia and the
consequent release of q large amount
OF money tied mp 10y government neces-
sites. as well as the release Of large
sums Withdrawn from ordinary uses,
both by large fnanciers and small
holders.
In fact. reports have already been
received that Austria has begun de-
mobilization, but with Saturdays re-
newal Of the crisis the cheerful feeling
engendered earlier In the week and the
hopes of a rapid easing off in the situa-
ton were dashed.
The money market was further dis
turbed by the uncertainty OF The size
of its Indebtedness TO the Bank OF
England, as "A large number OF short
bills have been taken To the Bank re-
Gently which will mature within the
next few weeks. and also there was
con sidera BILE doubt as to the probable
movements of gold during the next few
weeks India will probably need silver
more than gold this year, and all for
eign countries have been buying gold
freely. which, OF course. reduces their
ability TO take gold. but the recent
large American exports make 1t pos
sibIe for New York TO take gold IL IL
wants IL, while the immense with
drawals of cash from the banks OF
France, Germany and Austria have
made money dear on the Continent.
London is subject to Withdrawals
whenever the price is relatively cheap
here. and now the prospect OF the fail
ure OF the peace conference destroys
any hope Of improvement in the Conti-
mental situation.
Gold has been returning to the Bank
from the country since Christmas, and
the stock OF gold is now increased to
S1O6. sos, 900, and the reserve to $1O2,-
10000. Deposits. both public and pri-
yate, have shown very large increase,
and the proportion of reserve to liabili-
ties has fallen to 1906 per cent.