The Hastings Standard Published Daily. MONDAY, APRIL 12, 1897. THE MONEY MARKET.

Hastings Standard, Issue 295, 12 April 1897, Page 2

The Hastings Standard Published Daily.

MONDAY, APRIL 12, 1897. THE MONEY MARKET.

For the cause that lacks assistance, For the wrongs that need resistance, For the future in the distance, And the good that we can do.

Tiik movement of the London money market as exhibited by the Bank of England coming at the present time, is a strong indication that the political turmoil which has so long cast a gloom over Eastern Europe, is about to disappear. The Bank of England has reduced the discount rate for three months' bills from M per cent to 2 V per cent, and it must lie conceded that discounting merchants' paper at per cent is risky if there is a possibility of Great Britain being on the eve of a great war. I'ndoubtedly the lowering of the discount rate is a clear and emphatic indication that a pacific solution ot the Eastern question has been'found, and this m elTect means that Turkey and Greece have collapsed undvr the stern and uncompromising demands of the Great Powers. If we are correct in this view we shall hear very shortly that the blockade of Greece is unnecessary, and that peace is to reign where war seemed inevitable. Judging by "the recent cablegrams it is apparent that the Tsar hits been the moving figure in the direction of peace. The letter of the Sultan to the Tsar, in which thr former acknow lrd-_'« s the services r-ndt r»d to Turk« \ bv liu-sia, and the de-irc of the Sultan to conform to the wishes of the Great Powers was no doubt brought about by the Ktisstan foreign office. Th* r»- is a marked disposition on the part of the crowned heads of Europe to pre* cw a kindly attitude towards England'-) tjuiiu. not because there an- no: did. n nt•-- of onim-m. bit be-eau-'v tin- >i ir mark* an too-ili no-parall-h >l m h.-•■r;.. and i- n« wish to iif any wv. Mar :!k Miionai Celebration which ui»i tin- \ ar take tu JiuglnOid 10 iiiark tiic o *Ceat

event. The great respect in which England's Queen is held in by the rulers of other nations has in no small degree contributed to the maintenance of peace. When the Diamond Jubilee celebrations are over there may not be the same explosive material in the political atmosphere as has been the case during the past few months. But to return to the money market movement. The action of the Bank of England is to cheapen money, and this movement will have the further effect of restoring confidence in the London money market. The absence of confidence has been seriously felt by the gold-mining industry of the colony. We believe that since the beginning of the year there has not been floated in London a single company to work any New Zealand mining claim, until last week when the Otago Pioneer Quartz Mine was floated. Now it is well known that the large mining syndicates have secured options over various properties in all parts of the country, and are now waiting for a favorable opportunity to float companies in London. That opportunity is now present, and we therefore ought to see many new mining companies floated, and consequently the mining market in Auckland, Reefton, and elsewhere should revive, and that revival we think will be witnessed. The discount rate of the Bank of New England was reduced from 4 to per cent on the 21st January last, a fortnight later it was further reduced to 3 per cent, and this rate was maintained for nine weeks until last Thursday, when the rate was again brought down to 2 b per cent. A further reduction to '2 per cent must in due course follow, unless some unexpected political complication should arise to disturb the peace. The movement of the Bank of England in reducing the discount rate is the most cheering item of news that we have had by cable for many days.