MONEY MARKET

Dominion, Volume 7, Issue 2218, 3 August 1914, Page 7

MONEY MARKET

BANK RATE 10 PC. / CRISIS IN, GERMANY MANY. FINANCIAL FAILURES THE POSITION IN LONDON (Rec. August 2, 5.5 p.m.) . London, August 1. iho Bank of England transacted big business in weekly loans, short loans, and discounts at the unprecedented rate of 10J per cent. After receiving 'notes from other banks, crowds invaded the Bank cf England and exchanged the notes Jor S°'d. Tho bank \ will probably ' take steps against gold being secured in tbis manner for transmission abroad. .The bank rate is now 10 per cent. .The Bank of England was early bcseiged by a crowd of many timid people owing ti reports from the Continent to whom' notes wore useless. Others were unablo to got monies for Saturday's pay-day, as tho other banks caslied cheques with ninety nor cent, notes. It is rumoured that the issue of - one ■ - pound notes is likely. Mr. Asquith Primo Minister, Mr. Lloyd George Chancellor of the Exchequer, and tile representatives of tho Bank of England and leading joint stock bauks conferred,. and decided that tho situation bad not yet justified emergency action. In regard to tlio supply of legal tender currency it was announced that tho treasury was prepared to tako action" immediately it was necessary.

LONDON EXCHANGE CLOSED

London, July 31. The Stock Exchange lies closed till further notice. It is reported that' this action is duo to fifty members intimating that they will "hammer" themselves.. Owing to the postponement of the Paris . settlement the <<nmmitte& . has postponed the August settlement of Consols till September lj and the ordinary mid-August, account- .till .August- 27. ■ - The London Stock Exchange never before has closed, through a war crisis. It is-, understood'"tlirii- the Governor of the Bank of England and Lord liothschild participated at the committee's deliberation. Tho National Ponnv fiank, of Vic. loiiit .Street, and other branches Lvo been closefl. Some branches 'have been cashing more cheques than usual ami ! paying largely in notes and m'!voi\ Thcro have'been no 'remarkable' nil! 0

circles considering . the crisis. The calmness of London is in groat contrast to the other capitals. ' - CONTINENTAL MARKETS -.'.The bank rata is now G per cent.

FINANCIAL CRISIS IN GERMANY

- - > . Berlin, July, 31 ' -j ino-.nnancialycrisis; resulted /li the ... suicide. 1 -of ,p, number of leading finantiers.*: • - .i' Thero have been .& dozoji muior- fail-' ures, on the Bourso., . > ■ Tj lo financial -Press states .that it is evident that,foreign countries, notably franco, aro withdrawing capital from , Germany. - . r. Paris, August 1. • ' i™ discount . rate: of the' Bank' of I"ranee-is now 6 per cent' ' Official reports state that owing to ( ... ■ ivorld-yndo riso 111 prices, and the probability of tho crops..being,.below the , average,. „there,,is, prospeot, of seeing ioodstuffs concealed' : like gold. Tlie Government. has prohibited the oxport of corn, meal.,of all sortsoii. ,NT St> p , e{e «burg, August 1 I^sury-has.,withdrawn all de•posits XiToju ; Gormany • and Austrian banks. Tho deposits remaining at J'ans and. London nre sufficient for tho G(i\frnment's, coupons for a year- Tlie balance-.in. the.Treasury . is. -fifty... mil-, lions,.. wJiich,. .fortunately-, . was 'riot- expended. undor, tho Military and -Naval . Bdls: sanctioned by tho Legislatures Brussels, July 31. i .Ten thousand:besieged the National • Bank, but thp runs are. now subsiding. Tlie "Etoilef'. states that the Govern-- 1 ment has bought the entire wheat sup- - ply.., of, Antwerp, under threat of ■■■ ■■ ■ seizure..,' . ■■ v . . ■■■ - CRISIS IN -SWITZERLAND.-' Berne, Julv 31.... The Federal Council ljas: authorised ■ the National Bank -, to- 'issue- twenty ■ franc notes,.and'hava decreed- the notes •legal currency.. ; ■; POSITION IN AMERICA , N-aw York, July 31. The.Stdck.Exchange is closed jsevcral failures, announced 1 also: ''Exchanges . throughout overy large city m ' the ;. United States ; <toii/CiUiada ; hare closed. \ , Tho-Cotton Exchange at New Orleans . . violently fluctuated;-.fhealthe directors • ?closedt secretly. ■ Mr.vMVMoo;--|3ecretary to the Trea.Buryj js Toady-to!send o'ut a -hundred million : [Sterling.cuiyencyvfif'.'riMessary.','. to meet • tho present financial conditions througli- • ' out : tbe United States... ,' • . •; . i' ;, '.' ..Now York, August 1. ■ '.' ■- \Tlieravii : threatened' a ' wheat'.'trade panic, but; ®o far.no failures,.are. re- ■ ported. <■'. Tlio . Liverpool fluctuations ; . .nearly. wrecked the .market>liere. • ' ■■■ 'In the event, of.a; European war tlie ; Stock Exchanges'throughout.'the United States are likely to close. ■ , "h ' is,'; every.- indication : tbat "tbe but ex- - i change gambling is-likely to.get l beyond control. Several failures ate announced; 1 AUSTRALIAN MAEKETS.: : . , . i-. Melbourne, August 1. Tho Stobk-'-Exiliange ilias: 6ilsponded '.' all forward :..dealing , at., six .and four - . weeks. • ' : . /:v". Tho. shrinkage, of stock during the '"..week represenfed' £3,628,000.'-'-.;; '. •. - - '■ ' • ■ 1 '. - Sydnoy, August 1. ". was much, excitement ,in tlie wheat market yesterday. There was a strong.;.disposition.-. to' buy;;in; ; view of the private cables announcing tliat . - • vftlues- wero-increasing owing to .wheat ■ supplies from .the, Baltic, and Black Seas being, stopped. , Buyers offered 4s. dd. ; forflld' grain;' sellers;dokanded 4s. Gd. / AUSTRALIAN METAL MARKET. Sydhey, August 1. N The metal market lias lieen affected '■ 'By tlie orisis. Tin is down 2205 ; on the week. ' Copper lias decreased in price by 70s. • ADVANCE IN FLOUR. .. _ (Rec; August 2, Midnight.) August 2. • ' Flour has- advauced 10s., and iB now - £10 per ton; .. : : , : SYDNEY' STOCK EXCHANGE. Sydney, August 2. Unprecedented activity prevailed on ,;. the-? Stock -Exchange -yesterday, ~:'mem.- . , bers ibeing, divided-in to follow ■ the example of and New York to close;. -The general feeling-is that . they could afford .to "remain'open for ■■I 1 business, ;which will be resumed on Tuesday, as usual. Great excitement . prevailed on 'the" declaration of war. The papers published special editions,, which were eagerly devoured.; ; TROUBLE IN,THEi WHEAT TRADE. , " k-"(Rcc; August 1, Midnight.), ;. ■ ( ■•■■■ ' ' - London, August 1. : Wlmat.—Trade is practically, suspended.- ' • AiKcncan'gram merchants* cabled ; the. London Corn Trade Association that; they refuse to .carry out contracts unless buyers are paid war risks.;.. The association replied ; that . they; '.would K;.'*' ,hold;.them; to,.the•'contracts,' and"ship-" ; . ' '- .'jibre -.must 1 . any. -insurance i . necessary. It is believed the Ameri- '>• •• chns- action is due' to ; the , fact that ■ largo numbers sold short, and are faced ; . with heavy-Josses. ' ! Becrholm,'- m-his . .prclmnary. esti- . . jiiate,' places the world's wheat crop at •lt)4 million quarters. ' DUNEDIN STOCK EXCHANCE. ' ' Duncdln, August,l. ..During the week operations on the local Stock Exchange have been mostly , confined to,.niiiiing shares Avith- a 'falling market, while'.,the investment market lias been practically dead. - No business has boer.idone in banks-and-insurance. • Scllors are' iiot','t]ifowing' sliares. on the . market or disjwsed to' p.ccept. less .than the ruling rates,'but' there- ' are no buyers.' ■ • ...... .