New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-31
Raises Discount Rate Full
Point as Protective
Measure.
SAME ACTION TAKEN
By BANK OF FRANCE
Imperial Bank of Germany VIII
Hold Meeting Today Tor
Similar Purpose.
fBv Cable 70 Tho Tribune

London. july 81 Nuiith "a SP">,
marked the demeanor Of broAois a"
day Yesterday on Change. nc raising
of the bank rate from " to j pen oen1
passed almost unnot,ccd ln lhe -'oo,"
- N, failure Of two more hrms' ono
81 big concern. Derenburg q o. MS
,creived with omiuous silence.
Consols arc sill lowering uncer -
O. d,on of SIX points or more since inc
bulls rushed them TO more tnan 40
month ago. Dealing on an ShSIe9
zero almost suspended. Yet price,
tumble with practically no snHr's
changing hanGs.
International securities are AhSa'"
lc a. any price. and mls'ru't auu
suspicion arc found everywhere Many
dealers advocate closing the stock En-
change as the only means OF opp.ut
the downward march OF SharsS' ~.
influential capitalists opPoSV
achemc for fear Of further Inder'''
nc the confidence of the publ.'
Sentiment also plays its part n Keep
NC the market open. for il is rnprece-
,.aOted that London should not acc ire
onslaught, Of panic- stricken traders On
the Continent; hence probably INC eN'
,eaugC viii remain open unless ''t
lsrd actually becomes involved IN war
Iondor agrees with Now YORK tha'
bc low records prevailing In the
American market are irrational and "
,,.arrsntcd and more than discount ne
vsorst conditions TO which Ameriotn
trade and industry can conceiNanlN ne
reduced. Also they ignore the pump'r
crops and other good signs.
The postponement of the monthly
settlement on the Paris Bourse ADDS
bu, little 10 the general depresslo"
because current apprehension reaches
Ear beyond that and breads only
general moratorium there instead ol
temporary one. r,,d
,,;,b S,rnrise at the passing of pay
dav on the Liverpool exchange without
any failures being reported.
Tho Rome and Milan bourses nave
.usnonded time contracts until iuTther
notice. Finance in Berlin is at stano
sill The gold supply is beng
watched anxiously. and gold payments
msde only with the greatest relucl-
me The runs on the savings banks
rontinue. though in slightly less VOL
une.
London. July 3o.-As was anticipated
tho Rank of England raised ITS mini
mum rate Of discount an entire point
"
-. aiken as protective measure IN
,.ic., OF the chaotic financial condi-
tious on the Continent. following the
outbreak Of war between Austria
Hungary and Seryis and the almost
general advance OF the bank rates IN
Continental centres -
By discounting bills freely IN the
las. few DAYS. while ordinary sources
for discounting were practlcally sus-
pended. and by arranging eredi's IN
connection with gold coming rom
New York. while American eXChanees
,vere % difficult 70 obtain. the BANK OF
Fnrland considerably relieved the
fnsncial world. Now, however that
- = being made on its gold supplies
h., the Continent OF Europe the bshH
~ England has found II necessar! 'o
take protective measures. -
Something like s5.000.000 IN coid
,..-t ont yesterday. while France CD
.ained practically the whole OF me
g. 600 600 which arrived from South
Africa on Tuesday, and although $40
0oO 200 js coming from New ORR 10
nv for securities sold recently 'hls
nm can hardly arrive in time 10 or
80, anv further Continental oeHanus'
The Bank of England return Is eA
poc,ed 20 show large increase IN the
loan business. Smdi4ti 6"'N :
9 barn shrirkage IN the proportion OF
,,serye "a liabilities. which the higher
hank rate and the expected Solu d.
rivals will partly restore. If;
The Continental financial ana poliu-
ii .ituation. however. IS so acute tnat
.. ia essential for the chief financial
,-s-itut;on in London 20 take measures
~ nro.ection. The open discount mar
l,. will be able 20 work more freely
on. hat uncertainty has been , moVea
,,,.b tho establishment o. higher Of
scisl minimum bank rate.
Ab.oIute gloom prevailed today on
the stock Exchange. Yesterday croo
~ failures and the fact that there Nas
70 innrovement IN the European ctise
had 4 most depressing enect. nroAs
TODD about in groups "ating ~,
something 70 turn up, but they oecllheu
% do any business. Quota,Iohs M
.o-,cobst under yesterdays hguIes'
~, yeTe purely nominal, and "nat
,,,fc business vas done was matter
az prolonged negotiation;
ii n Consols opened at yesterday
,eonrd Of Gqi:, which was z Delo"
,cs.erfav's closing price. Inc! qulch'y
,o~ered ., point. however, 70 the
,,re =, which the government p'oAe'
Wa buying. ...,;,o IN tho
The hammer whose tapping c.acl
De-. announce failures on Ine - -
Txchsnge vas heard early 'o-oay' , 49,
ne Derenburg Company, WIN tdIsJ
Continental connecticut hhhouuCD
20. =. go unable 20 meet its obilga-
20. All the failures thus Tar an
-.',.,..d nc been o. firms which Do
Continental business. b.d -,
The change IN The ban. rae na' 10
-, ~ nc market. as j. had been an