WAR'S BAROMETER.

Star (Christchurch), Issue 7418, 2 June 1902, Page 2

WAR'S BAROMETER.

TO THE EDITOR. Sir,— -A brief glanoe at the various mpvM ments of the bank rate and consols itt Bnf» land; between^ December, 1898, and Nov« ember, 1899, when the South African War threatened, will impress on most minds the commercial value of peace. On Deo. 1, 1898, the rate was 4 per cent, and .tjur* ing the month Consols reached 111±. I» the middle of January, 1899, the rate wm lowered to 3£, with Consols g per cent higher than before. On Feb. 2, the rate came down to 3 per cent, with Contoit still touching 111*. The month of March saw only a. rise of £ per cent in Consols. During * the four months mentioned, agreements were made withi countries concerned by England concerning the Soudan, the Canadian-Al-aska Boundary, and the . Anglo-French Boundary in Central Africa. About *hl» time, South African affairs became prominent, and the highest pfice of Consols during April was IQ7|. In Mar, the Blofcn* fontein Conference sat, and Consols went downf The Conference broke up on June S, without result, and during W month (May) the Peace Conference wa» sitting at The Hague. The J«_ «J .• Blue Book, giving Sir Alfred Mila«£ views on the Uitlanders' position, dww further attention to South Africa, .MKItM end of June came with the Consols' m«i< mum at 1098." On July, 13, JgjfJ Kruger submitted his franchise proposals t» the Volksraad, and the same day the bin* rate, which, im spite of a gradual MT to price of Consols of If, had remained fo* nearly five and a . half months ait 3 pet cent, was raised to 3J per cent. The «nd of July also saw the close of the Jeac* Conference, with Consols down^to 108, 4 fall in the month of 1 8 . rise in Consols of f, and Mr Chamberlain « reply that the Transvaal was vM, a* claimed, a " Sovereign International BUI*. September brought us perceptibly nearer to fisticuffs with the South African Republics, and Consols fell to 105*. On Oct. 3, the bank rate was raised to 4$ percent, arid two days after to 5 per cent, without the pressure of any great commercial failures. On Oct 9 the Transvaal forwarded its ultimatum, and the war began, Console falling to 104 1-3. * ovem *L b A^^ siege of Ladyamth, Lord Methuen a engagements of Belmont, Grass P» t *»<* Modder River. These battles were promptly followed by a rise in the bank w* *« 6 f per .cent (just double the lowest tat* durini the twelve months), and a decfcne m Consols to 102 3-16, a fall *«■*•*£. of '9 3-16. At the end of 1901 Consols stood for a time at 91^ Since the^the gradual rise has been uniform, and typical of the general determination of the tion Last week Consols reached 95J, ««d on Saturday they werej^l axn,^^ June 1, 1902. ...