New-York tribune., 1914-07-06
LONDON MARKET
WAITING ON N. Y.
FIotation of French Loan
Will Do Much to Clear
the Situation.
HOME FACTORS MAKE
FOR IMPROVEMENT
Conditions Assuming Shape
Which by All Past History
Is of Good Augury.
rBy cable to The Tribune J

London, July 5.-Buslncss has been
very inactive on the stock markets. but
the feeling is that decided improve
mont is bound TO come alter the holl-
DAYS. and there is every probability
that the improvement will begin to be
felt very soon. Concerning home lnfiu-
enccs. il is felt that the events OF the
last week in the political world show
that the Irish question Will be amicably
settled and this will lift a great cloud
from the markets.
Looking abroad the near approach OF
the French nstional funding loan OF
s16O.GOO 900 viii be a powerful factor
in the rciuvcnation OF the markets, as
it will release great amount OF
French money and bring again into
view much Of the immense sums
boarded in France for the last two
years. d,
The Brazilian situation IS expected
soon TO be cleared by an agreement OF
the loan. while the crop prospects
everywhere arc Of the brightest More
over. the growing abundance and cheap
ness Of money seems bound in all eX-
pcriorcc before long 10 boost the stock
markets AL over the world.
OF course. prices have been steadily
declining for months in the face OF
nrophccies of better times, but at the
present level there must be an i'm
proyemcnt. and il is certainly true
that conditions arc now assuming
a shape which in all past history has
meant improvement.
America now holds the position OF
being the greatest stumbling block, and
Europe looks anXiously across inc
Western ocean, for such a great amount
Of American securities are heid IN
Europe that unless the railroad and
big business problems are settled there
by satisfactory agreement with the
Government all other favorable condl-
lions may be nulliicd and the markets
drag along for an indefinite period
waiting on America.
The international money markcts arc
daily becoming more plcthorc, with INC
cold discounts in London last week
Showing the effects Of the increasing
supply. Sixty-day bills have fallen to
Il, per cent. three months to 8, TOUR
months to > l-16 and six months to .
per cent. -
The Bank Of England greatly i'm
nrovcd its position last week. the pres
ent figures Of the stock Of gold and
reserye showing the real condition
The Bank of England got $7,25OoOO
gold from abroad last week, but owing
+ to the movement 10 the province
shows net increase Of only $17OOCO
in the stock Of gold, to $500, ,il5.oOo'
while the withdrawal Of nearly ST.,
OGO 600 cash for the country reduced
the reserve to s143. 10000, and in con-
sequence Of tho large addition in do
posits following on the loans to the
market of nearly s50,0O0,00O the pro,
portion Of reserve TO liabilities had
fallen TO 1913. These are the actual
figures. but they fail entirely to con
vcy the true impression. which is that
the Bank Of England is exceptionally
strong for this time of the year, and
lar exceeds all the expectations formed
six months ago. Actually the Bank
of England has shared to the full cX-
( tent in the great accumulation Of gold
taking place in European centres.