MONEY AND MARKETS

Dominion, Volume 7, Issue 2219, 4 August 1914, Page 5

MONEY AND MARKETS

SUSPENSION OP BANK ACT' A QtJASI-MORATORIUH. GOLD PAYMENTS SUSPENDED London, August "2. At a con.fere'nco on Saturday evening between Mr. Lloyd George (Chancellor or the Exoheqiier) and leading bankers it was stated that it was anticipated that the Bank Act Would be suspended on Tuesday noxt. Pound notes i will be issued in a few days. Ik Royal proclamation this afternoonestablished a guasi-moratbrium. ; . "\ [Moratorium ist a term used to express a,, legal authorisation oostooning .for a specified time the payment" of debts or obligations. The term is also sometimes used to mean tho perio'd over, which the indulgence or period of grace'stretches,' the authorisation itself beiriftAxJalled a moratory law. A moratory. law- is usually -passed in. some special* pei'iod of, political or commercial stres'j; "for'-in-stance, oh several occasions during the FrancO-German War the French' fioyerr.ment passed moratory laws.] " • : ' : ' Grocery arid provision firms aro bombarded with orders for provender. ' Sotne of the, leading shopsiffiad their stocks practically cleared out, chiefly canned moat, flour, and sup;a,r. . There is great anxiety in- -tho big hotels in Ldndon, in which ■•there "'are 16,000 Austrian and German waiters, 50 per cent, of whom will probably'"be recalled tp- thoir countries':;.; colours. Qotels catering for GormanS; ; ha.d i 7o'pcr ceht. of their waiters recalled in. advanee.—"Times" and Sydney' : "Sun" Services. ■.■,..

'The bank rates at Paris and Berlin aro 7 per. cent. ■-•

-.' ;'■'■.• The Hague, August 2., Measures .have been adopted to prevent tho cornering of foodstuffs in the Netherlands.. _ s '' The banks will suspend gold payments in the event of war.- , ■ Constantinople, August 2. The Wiener • .Bahkverin . has v been closed. , .'■.,- ""'".' :

|-■. ■. _ Peking, August 2. The Underwriters refuse Russia, German,'and Austrian business. German liners 'are. told up at Shanghai. ■':' , . ;;• --. ■'

'AUSTRALIAN :

STOCK EXCHANGES,CLOSED. (Rec. August 3,,8,40, p.m.) ~,",-, "Sydney, August 3. Although the banks ore closed for holiday, the heads of the leading financial institutions discussed'the position* .'lt is anticipated tfhat the banks will be asked to suspend payment in gold tomorrow and tender paper money only until definite news arrives.from Britain regarding the financial po'sition, The local bank rate is espeoted to advanoe immediately. The .Stock. Eiohange Committee has not arrived at « decision in regard to closing. It meets again to-nronw. . The Premier, after a previous Cabinat meeting, said Australia Was never in a. stroncer position'to face a'financial difficulty than to-day. While the situation was one of unprecedented gravity, her own resources are at /a level of unprecedented strength. There was no occasion for fear as to the stability of the country or the Government. Flour ihas advanoed 10s., and is now 500s. : . ■ . , Adelaide, August 3. The Stock Exchange has been closed indefinitely. ■••.■■. Melbourne, August 3. The Stock Exchange has suspended operations'indefinitely. . _ The Federal Treasury offioiate state that thero is not the slightest sign of abnormality about the Australian notes reserve. The banks are not demanding gold, arid the issue of notes last week was greater than tjio redemptions, and no uneasiness is felt. The leading bankers are of opinion that it is advisable that all Stock should close, otherwise Australia would be mnde the dumping ground of the world. They are confident the banking position is sound.

AUSTRALIAN WHEAT MARKET

(Rec. August 3, 9.25 p.m.) _ Sydney, August'B., ' The wild excitement which"character- . ised tihe weekend iii the wheat, market was entirely absent to-day, -buyers* deciding /to operate cautiously.. There wore triariy sellers on epotjflV'4B. 6d.; but no buyers. Shippers have declined to operate, in *iew of the high insnrance rates, and loading litis thus been practically suspended. -~,...'; MONEY REMOVED INLAND. , (Rec. August 4, 0.5 a.m.) .. ; . Melbourne; August 3. Notes and gold have beeffi removed from the Treasury to an inland town.

MOVEMENTS OF LINERS

— ri3 r-.v^ GERMAN :.' REFUGING IN NEUTRAL'PORTS, London, August 2. ■ 'the British and Amenoan^tranß-At-Untlo liuos have ab&ndoned tie Contin-

ental routes, and will run solely to Bri> .„; . tain. "":';.".' '.'.■ \ '"'"- "Germia vessels, ar© hastening''.tO!i.the nearest neutral ports. .■"„..'.'' Sydney, August 3. There are thirteen German steamers, including mail steamers, in Australian ports or watersll" .Three, were loading coal at Newcastle—namely, the Limbcrg, the Linden, .and the TJltn T They loft hurriedly yesterday—two with only .part cargoes—clearing ostensibly for; Java and other eastern "ports'." From their'hurried departure '.t is surmised that they have received instructions from Germany to proceed to. a neutral port. The German Consul • disclaims any knowledge of-the matter. Another German, steamer, the TlVcstfalen, coal laden,' lias cleared for Bremen. Several German sailing vessels remain in Newcastle. Shore leave for men of German steamers in Sydney'has been stopped.' (Itoo. August 3, 0.20 p.^n.)':;.:..: Gibraltar, August 2. • Twelve l German ships are refuging fli. Spanish portß.