New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-06
uooetary Situation Still the
' principal Factor, but Recess
sions Are Not Marked.
al READY FOR A RISE
.rovement in Balkan Condi-
WI ions and in Bank of Eng
lands Position Will Be
Signal for Advance.
tpv Gable 20 The Tribune.

,.,,on oct. 5.-There was no sur
!, financial circles when the
"~ ~ England raised its rate last
0' ar 10 5 per cent. The move hau
WV ovnected for some time, as 1t had
'' - evident quite a while ago that
90 y. homes Of easy money in the au-
ga mad been built on false founda-
' n Is a question now whether It
n not become necessary again TO IN
... the rate, but while this a pos
satv to be reckoned with it Is not
a probability.
me raising of the rate last week
more in the nature Of a precau-
than an absolute necessity. Even
oh there was a reduction OF the
'.'rs reserve Of $2O000.OO0 in a sim
veek the bank still remains very
But Paris exhibited a consid-
IA. degree Of tenderness over the
..,,rlv settlement. and there nave
y, several disquieting rumors from
ss the Channel and a large amount
!, securities have been hurled over
,srd in France.
u.sides this, while Russia is enjoy
:, great expansion Of trade ana
.sas lis exports have increased enor-
81, and AT the same time higher
ices have prevailed on the st. Peters,
',rg Bourse, the Bank of Russia is not
\, any means as strong as 1T has been
! recent years. OF course, it must be
,nembered that the Bank of Rus
!, is not conducted on the same prin-
elUss as are the banks of other coun-
.,J,s and therefore it is only by COM
arson that the Russian position Is
vsskened.
ls matter Of fact. the Bank or
pssa holds stock and cash almost
ndrsly gold to an amount upward
So0OOO.OOO In excess Of its note cir
satOn. But the general situation on
!, Continent, combined with the fact
at though Egypt has already taken
nv than S30,O00,000 gold, which is
ave than the total of the whole of
n years demand from that quarter,
4, d still far from satisfied, and the
,sn demand. which promises 10 be
u,Sually large, is still to come, While
suth America and New York remain
.,csrtsln factors. Thus il seemed
hivhN advisable that the Bank of Eng
and give warning that Size cannot
spare unlimited quantities OF money
specially if there is going to be any
really sharp competition for the new
rld coming into the market.
Of course, the situation was bound to
ave an effect on both discounts ana
,As stock markets. The stock markets
VsyGed during the week, but all
Ahgs considered held up well, for not
sy was there the money situation TO
astsnd with but once more the Balkan
siustion was to the fore in interna-
lCnal politics. Conditions in South
asiern Europe are again very dis
Szstlng, and investors and spectators
ID not expect the display Of any great
mount of verve while rumors Of war
~utinue to be so persistent.
Still the stock markets displayed a
'sy good tone in the face Of an UNI
Eopltious situation, and are evidently
Hity for a rise whenever conditions
lsnit. Discounts hardened, of course,
eonsonance with the increase in the
ank rate. Sixty days bills ruled at
y per cent, three and four months
Ills at 4n and six months bills at Az
n cent.
The bank lost $15,420O00 gold, re-
a0cag the stock to S177,99OOOO. while
ne reserve declined S20,300,000 to
a1VSl.0O0 The proportion Of the re-
~Ne 10 liabilities fell more than five
JOINTS N 20 o.