| Show HAS THE BOTTOM BEEN REACHED Question that Is Now Agitating london Financiers LOSSES Ol OF OPENS OPEN to 0 ho bo Idiot nt at front ili 11 Our lie 1111 World Trouble tl w York Jan Tim Times Lon slots dolt financIal corre correspondent cables lIa 1180 the bottom reached That I L t I 1 h question ot of most interest t In the market It Ja ii reasonable to i I that It hu flU for after atter the bank ns 1 reduced to 4 veT per cent on Thursday the open market began to harden Oil three months hank bank bill now and thin then be die counted at al a fraction under a per ir cent the Ii rate was passing fIrm finn at vIi hort leans IDAlia have haIl not risen UsIa per cent nt bUt bot the they are sure ure to tel tol tellow 10 low dIscounts It the ot of bat shoes anle continues There however I is the doubtful point In the last the o open n market hait upward ot of through tilt the collection ot of revenue and I the he reo re yesterday but next week the government nt which lies flooded ed tire tIle market with In new credit procured from rom the bank enk will in III tire the ordinary l course ur release large amounts end thus restore the lOon money t I away or part ot of It It Is probable that thaI the tho market Ina may I down own again And III as nit all the continental are tal ling a 11 period ot of low rat rates might lie be considered assured The bank ot of Germanys Is now w about within the for tor which It has to PR the government G t per Iler cent and therefore It will collie clown to G 0 Ier cent soon The bank of France Fronce is 15 b back ck almost almo t tnt nt at the level and your our market seems seema to cheapness for tor a 11 con period Why thin then should not London rates further recede The recent has stifled speculation lation so much so that the raisin allio Issue ot of new shares was the only fresh public demand on capital made madl this week Six per ner cent has hils been like the winter to the beaver and general line has II III as It If from a 1 stroke ot of sis The fair inference is is that we are at the beginning ot 1 period ot of stagnatIon and that the bank rate even een go o lower I hunk a further reduction Improbable bl ble were It for tor no other uther rea reason on than that the government roust must soon be a heavy heay borrower and that foreign tie de demand mend mand un en the banks stock ot of bullion are sure to revive ominously It the die count rut rate Is allowed to go below 3 per per percent rent cent Even this rte Is too low for safety as wItness the tact fact that all 1111 the theother other markets are now above us But Dut the truth lrUth is III guessing Is III barred by Ig Qt 1 ie Reports various amounts as about tob ked tot fee next week by the tho lowest 1 sum Altogether Inadequate Take It nt at that and Its collection and amI disburse disbursement ment macat must have hae a 11 Influence In first curtailing and then expend lag Ing the supplies ot of the market all as the mone money Is collected and paid out If the payments involve exports ot of gout gohl Is 18 certain again to appear Further India must soon come for or n a aloan loan and the Cape has been obliged to raise rals already to avoid n a de default fault It will be necessary to fund this and to provide for other colonies considerable sums Bums sO as to keep th wolf volf from the door anu all an rain means either olther gold exported or intercepted On the best supposition therefore the London money market cannot reo re remain main comfortably OS easy for tor more than thana IS a week seek at a time It stands to bo be shot ahot Rt at from all over oer the world wand The greatest help In the tho maintenance ot of tow low rates lies In the thu do dc not only of speculative bust busl bustness ness on the eto stock k exchange but ot of trade enterprises In nil directions Al Although 1 thou though h the 6 Iler cent rate has gone like liken n a bad dream its lis consequences are arc with Us still murd will rill presently appear In trade returns factories running on halt half limo or shut down and general complaint On tire the Industrial able tire the reaCtion hM has made some reM rese and we shall see n a In III the u use ot of banking c credit lt In this di alone which ml might ht under ordinary nat nary suffice to fix fil cheap n ne on th the money market for months All however on the govern gorn mont ent even een the CO coat t which Is becoming more and more acute and driving manufacturers to despair Our banks did well the last ot of the IJ better han ban In th the first month ot of the tho new year ear Most of them have distributed higher dividends and andIn In other directions strengthened their position with the public Jt it Is IR other otherwise wise rIse with our rn railways II a 8 What between the steady increase of charges and tho Quail growth or working expenses I common are artl destined to suffer n a slow In dividends IlI as the years pass pUI nut But our dont lint tate the example ot of the best anong the tho ones oneil and liberally screen against future adversity b by stopping capital outlay and providing for tor from revenue universal motto molla Is to pay dividends UP to Ih the hilt and let the future look after atter itself I a |
