New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-07
Returning Confidence Knocked
in the Head by Balkan War
and Strike on the Rand.
cnoD CHANCE FOR BUYERS
English Financial Writers Call
Attention to Advantages OF
Investing in Amer
lean Securities.
rBy Caole 70 The Tribune.

,ordon. July cit is extremely diff
.,l+ not TO write pessimistically OF
~ market conditions at such times
49, ,b,se No sooner does there seem
d.. no q chance Of affairs becoming
.rigbter and prices recovering than
.,-rcthing new comes along to knock
rrosperity in the head. It requires
mast confirmed optimist to keep cheer
mi in the face Of the constantly falling
u,arkets and new discouragements
which each week produces.
The only thing TO do under the pres
-, conditions is 10 look at the ad-
,,ntages offered 10 investors. There
ava splendid opportunities 10 get hish
,.tu-ns for money at the present prices
- rilt edged securities. English fnan-
oi.I writer's join in pointing out the
snecisl advantages at present Of in
rsst,ur in American railway and in
dustrial securities on account OF the
Great prosperity Of the country and the
s,ronr positiou in railroad and indus
trial enterprises. coupled with the fact
,bst soon Europe must he buying back
American securities SO hurriedly thrown
nver last fall and that consequently
prices are bound TO rise.
Last week the chief influences tend
ing 10 further depression Of the mar
kets were the outbreak Of a new war IN
tho Balkans and the seriousness OF the
labor troubles on the Rand. The Bal
kan war was more or less discounted
hut the Rand strike threw a real scare
into the market. as the Rand now sup
lilies an average Of S1950D00O new
yold 10 the worlds markets yearly. and
the stoppaCe for any length of time or
2 serious curtailment of that supply
would be 4 blow 10 the international
money markets that would gravely at
feet the worlds business. The result
was that when the seriousness OF tho
Rand situation was appreciated the
markets in all departments took tum-
bic and sought new levels. despite the
favorable reports Of various kinds from
many quarters.
For example. Continental centres
nassed through the quarterly settle
ment without serious trouble. Ger
many turned the corner into July with
every appearance Of returning pros
perity. and money rates dropped with
dramatic suddenness from l TO IL per
cent. Austria also made the turn with
out skiddlng. and, though there was no
such fan in discounts as IN Berlin. the
general tone was much more cheerful
and confident.
The Bank Of England lost consider
able in gold and reserve last week and
the proportion Of reserve TO liabilities
has fallen 20 42.14. but owing TO treas
urv disbursements at the end Of June
tho public was able TO pay off large
part OF the indebtedness TO the bank,
and there is so much ready money IN
the open market that call money fell
as low as . per cent, with an average
Of o. per cent. and the weekly fixture
vas 3 per cent There was practically
no change in discounts, two months
bills being 1916 per cent, three
months ( 5-16. four months 4 1-16 and
six months "a. The banks stock Of
gold declined S6.s45. 600 TO S1Sj.24O, 900
and the reserve fell S11,IG0o0O TO
sl29340OO0.