The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-07-28
HAS HURT CORN BUSINESS HALTED
London Refuses to Discount
American Bills.
Banking Between New York
and Europe Impossible.
MILLIONS Sent TO EUROPE
Foreign Exchange ut New York
In Panic.

New York. July 2s.-For the first
time within .;le life time Of the pres
ent generation 1t was impossible to
conduct banking business between
New York and Europe. London re-
fused to discount American bills.
wholly unprecedented experience. and
panic broke out in foreign exchange
here Monday.
The cost of one pound sterling by
cable rose from below $3.50 on Sat-
urday to $4.92h, while sight drafts
reached $4.s2. purely panic quota
tions.
To ease the tension. over $1o.oOo,o 900
in gold. q record consignment, will be
shipped to Europe tomorrow, and
more will % tomorrow If the war risk
of n Of / per cent asked this after
noon be Withdrawn. This year Eu-
rope has taken 95.O00,000 American
gold.
The chief international financial de-
velopments today were:
1.-The bourses were closed in Vi
emma, Budapest and Brussels; the
coulisse, or outside market in Paris.
suspended Operations, and In Berlin
and Madrid the bankers agreed to ex-
tend support to allay panic.
2.-British consols fell to II. new
low level since the interest rate was
fixed at 2H per cent: the new French
rentes fell to Sc, or five points below
the price at which they were recently
enthusiastically over-subscribed; there
was a run on Savage's banks at Ber-
lin, Danzig, cologne Ind elsewhere;
Servian government bonds fell four
points and the stock markets in Lon
don, Paris and Berlin suffered losses
ranging up to seven points, with. how
ever. comparative calmness at the
close.
3.-The Austro-Hungarian bank
rate was raised from 4 to per cent.
4.-European selling OF American
securities, both bonds and stocks, was
urgent here, but operators were han
dicapped by The virtual suspension OF
foreign exchange business. In London
conditions were aggravated by the u
ster imbroglio. and speculatively by
sthe opening OF The foftnigiifay stock
exchange settlement, which induced
brokers to can upon customers to take
! upon their commitments. Canadian
Pacific and Baltimore & Ohio were
freely thrown over.
5.-Amsterdam alone sold direct In
these markets fully 10000 shares
mostly 1ow-priced issues.
s. After early weakness and ner-
vOusness the New York stock exchange
rallied vigorously on covering purchas.
es by bears. moderate investment buy
ing by bargain hunters and others and
influential support based on reassurinf
advices from responsible European
sources in the afternoon.
Z. The deadlock in internationa
banking operations which sent ex.
change to unprecedented heights wa.
not wholly broken before the close ant
there were bitter charges that certain
powerful financial interests had not
acted in q creditable manner. Rate.
rose far above the gold export basi,
but the insurance companies would no
/ allow more than SO, 900 900 to go ON ont
! steamer. Exchange is very scarce al
the market is bare of grain and cottol
| bills while the recent unloading o.
! some $50 0OO, 900 American securities b.
foreign holders has greatly reduces
New York's credit balances abroad.
| 8. Late in the day-after the stocl
exchange clOsed-the principal banker.
here expressed the opinion. with SOM
confidence that today's panicky condi
tions would subside tomorrow, as al
advices pointed to the probability o
Sir Edward Grey's conference Of am
bassadors succeeding in preventing
general European holocaust. The re
sistance shown by our security marke
was described as convincing testimon,
OF our basically sound financial posi-
! tion.
.. Wheat and corn prices here ros
excitedly on the ominous forenoon
news. as war would mean an abnorma
demand for American grain. but late
there was a partial recession.
10. Responsible financiers here urge
upon financial writer's the duty of ex
ploding the fallacious but popular no
tion that a general European wa
would help America either financial
or commercially.
War destroys wealth and all th
world must foot the BILL" was the Eis
of the bankers' warning.
/ Dew ND YnIIMc M