New-York tribune., 1913-09-22
bank Of EngIand'S Discount
Rate Likely To Be Raised
Soon to 5 Per Cent.
,sn u. S. CROPS THE CAUSE
counetition for Gold Coming
Into the Market from South
Africa Will Be World
Wide This Week.

london. Sept. 21.-There was con-
,-oh,e change last week in the con-
' .'',o,s affecting the money market, so
u' '.., with the more complete reports
land concerning the crop situation
.ne world il is now realized that the
a,ts Of an easy money market
-. faI are considerably diminished.
,,.cornts have already hardened in an
.,.;nation Of this. while there is an idea
!. vel informed quarters that the bank
-. &c likely to- be raised soon TO B
per cent ..-,
..rs are largely responsible for the
.,orged conditions. 1t had been eX-
...,sd that abundant world crops, with
.ta relative stringency of the money
..,rst would bring about a substan-
.sl fall in prices, but since ii became
,,oUn that the American corn and
1otton crops were so seriously affected
Nv Srouth and storms IT is seen this
,ondition did not exist. The reported
,,n-v 10 American cotton sent up the
,rces Of other cotton growing coun-
,r,ss and also affected wool prices, wool
hs,ng the staple which will be needed
"a All out the short cotton supply. At
,,s same time the short corn crop
rsadled the wheat market, and thus
,rcss all around are likely to rise in
stead Of 10 fall.
Estimates Of Egypt's demand for
rold were raised TO S50OO0O00. India
is producing an exceptionally large iute
GOD with prices up 30 per cent as
compared with last year, which. Of
course, means an extra demand for
sold from the East. South America,
with good crops. will be in a position 70
export large quantities; hence the de-
mand from that quarter VIII be re-
rewed. Germany also remains in the
market, and with the final settlement
Of peace in the Balkans the mountain
states as we'll as Austria will become
serious factors in the international
money markets.
Large amounts of money, too, have
been going 10 Austria from Holland.
Belgium, Switzerland, France and Ger
many for several weeks, and despite
the great sums already sent the de-
mand continues and rates have not
fallen in Vienna Germany also con-
tinues an active competitor for gold,
but the greatest interest at present
centres in the American position.
Though the Secretary of the Treasury
has announced his readiness to release
100000 TO the national banks. indi-
cations here at present point to Ameri-
can competition for gold in London,
snH New York's course when some
S5o0.00O arrives here from South
Africa this week is awaited with much
interest II any large American de-
mand develops the Continent will prob
ably cease 70 call on London for money,
as Continental bankers are extremely
cesirous Of seeing the monetary strin-
gency ease off. but the general situa-
ton, as it has developed in the last few
Gays, is not nearly so hopeful for easy
money this fall as it has been. In fact,
# may be that the market will have 10
wait for the new year before seeing
any appreciably long period Of plentiful
money set in.
Call money at the week end ruled a.
2psr cent. with weekly fixtures at pa,
but time bills were up. Two months
bills we're al 11-16, three months bills
at5l5-16. four months bills at IA, and
SIX months bills at Az per cent.
The gold stock Of the Bank Of Eng
land declined last week s2,130,000 10
1loOioOOO, and the reserve fell $780,
900 TO $15S,SO5, 900. The proportion Of
ne reserve 10 liabilities was 60.75, an
unusually high figure.