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I'l'fIE—, ITtlg OAN FROM ENGLISH…

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I 'l'fIE — I Ttlg OAN FROM ENGLISH CAPITALISTS TO THE Thn FRENCH GOVERNMENT. '?'s)*' ''?? of France last year perplexed the ^n8lish market, and now it is doing so agiin. For Ns, are not officially announced, but some of ?'"oh?y be very easily Ku?ssed, the Frc?ii?'t Go?r.jment ''?6e? t 'aVe er]i5 trawith certain English capit?lits of eminence f'>r a °' not less than ^2,000,000 nor more than j^000,000 J-, 'he French Government are to say how much j't'y \v|i| ?1"nd 'll a'l probability say that they ] An^-000 Thev are to deposit 3 per Cent, ??e. ?a'up(j p (thepr?sent price is about 71), and to pay, fatt Percent.—that is, 4 per cent. interest and "?ppr ??nmi??. The loan is to be for three ??''i?))t???????'n, and perhaps for loii?(?r, though on this ttigC does not seem to be compi- te certainty. IVThe e?? ?et upon the English money market is evident 'atevJ e SUm of money the French elect to take, there is tew der l)ia)id for money to that extent, and not only for **?t ? ?SUely and popularly called money, but on the *efy UjQ which lies in the discount market. Persons "'?it(.p  .ous of long investments will not engage in a {jfg fsir°us °f long investments will not engage in a P<>ra ?''? to a foreign Government to extricate it from ? ?Orop.?'yuiSj.:utty- Tbe <'&y?-?/MC money which goes '?0? '?°" or Indian 6peurities, or into French )?M?s, ^etl loU^^t to hold and ke"p, will It find its way into a ta'lsac:i"'i sach as this. The short-time money ?i(.? ?u.<ac?.,nauch:)8thi.. 1ne ?/<or??'M<; money wbi,h lie,; loose in Lombard street at call or short notice thg on) Y .?t of money which will be embarked in it. th ??' Purposes of the discount market, if the French ? '"?Pft- '?"? ?k to borrow ?4,000.000. it is ju?t as if ?,000 on?n "?' biilsha.Jbeen on a sudden created and ?U['Andwemust observe that this is 80.even thouh ''Qt? should leave the country in con Se1Uen °t bullion should leave the country in con- 141, ;,ce. The parties who disJount bills by no mcans as a ?? "?raw any of the funds which they thus obtain from But, nevrrheless, the more biti? there are, the '?b(.r "Brate. There are new borro"ers to that extent ?t(? ???st.andtheionders get the advantage. So, in ?'Se?'?he mere fact of the French (?overr?nent having ?rro?' the money, and having the right to remove it from L)rr,, WE! ttie mon,,y, ??nd having the right to reinove it from a%,e a tend,-ney tt) raise the rate of interest, We that right be never eXfrcised. h ?, ?  ??''??1 to be precise on. this point, because it is ty6 G Careto be precise on this point, because it is th, Pillion f some well-informed persons, though by no N,Ur °wn, that the mere fact of M. Fould's having ?!:n°?" to have the comm:md ofa large sum here wiH be ?'Eoipj'? ?? purpose, and that he ?H uot need to remove ?of, at ,it rorn But even so our money market would ^8 ??uecd. Tiie subscribed money will be paid into '"d ey. England to the credit of a separate account, 44d e"I'' if it were not drawn away, the Bank would llw,Ys '?apprehen?i'.etbatit might. The Bank would 4' Ei 3 POtl\ry be"r in mind that this Luge deposit was a tem- por4r PO'8essio 0f which it miht be deprived at the I)le, °'? Government whose treasury i by no means ieh a,1(j W'10se motions are by no mean,; calculable. ^ut iQ a'^ likelihood the money now lent to France will ??top ????' We perhaps carr y Boar.c i al scept i c i sm to a 90 o r?llce We perhaps carry financial scepticism to a extrerur,? but we do not believe that the French 'srn ?'"?"' ?iti borrow an.t pay interest for any money ?icb t"ydonottou.'h and handle. We do not mean that t?)Q hu",e gUm now borrowed will be exported in bulhon, '?Uo.? ??'xpeetthatpartofitwiHh?so. But we InC.? l l%Se„'t.at the French Government will not be q?,tisfied .a "'??' account at the Bank of Eng1and. They will ?'?Iti?re??ctiveaocount in Paris. The Money borrowed gu .n'° the general exchange account between the two c°unlri "ItO ttie exc*li  b t,,veen tl)e two Of tee¡\ anè 'he one nl'W awl lare it??m in the list ?'f6?.?'? claims which thp two countries ha"e to ??ttile  adjust with each o! her. The new transacti.o1 n Hot ^^ce^sarilv causeaneSluxofbuHion,butit? ^v'll to ause it, and, unless counteracted, would ta", e It and, unless counteracte d would spp??j-g ? be nothing at present to counteract it. The ?'as Somc ?"'? ?nt abroad last week before this grjat °'Jftion W as 'Jtlected. Ihe hrench exchang"e, according to Otdi l?RrY rull es, jti:,tilies it. Aswe!aatweHk remarked, the tra? "xpot ? )fis a nurmal part of the legitimate 0ftll'S coun,ry > and at present this expert is certainly "0t COM nteractod by the higher value of money iu our di;- ???nt '????t, for the rate of interest is lower in London ?n .??tauywhf'rec')se. Th'; tendency of this new "P<'r?[?'s to withdraw gold from England. If. we want '"Co??'????'???encv.Memust do something, t tl Coyferact that tendency, we must do something. | 'l'be Ra^ of England will probably be obliged t) raisa Jt j^'e,^ Perl,aP8 to raise it ''? t??" ?"?- Accordmg to the '?t. ac'"n"tm.tde up to Wednesday night, the Banking ?<'p?"'Sutstoodthus:— I1 deposits £ 0«2;Vepo«a t5,788,441 '?.?P?sits. 14,i79.9[7 "?yand other bills 692,899 1'útal" b'l' Banking Department -2- ? th?? ??'I'tics of Banking Department.. 20,661, 07 ?? ?s"e??- (}ulS  9,030,425 ?"u?!yer coin. 841,823 lit), 9,872,248 ?r??'Kht policy be, as we believe it is, for the Bank to I DI'l. rt' It It' t'?nki!? reserve to Guc'uate between a half and a it, n'?a banking liabilities, some caro would soon be IICS[) b',inkir?g liabilities, 80me caro would ?oon be ''?"'y; ItisintheearIystagesofadrnnthattheHank !l'ty ury to irnmu- i'ty???hleast injury to c'mmereR, and greatt'6t immu- fr0 No tody -ishcs rtioney to be as .?;)?? an8ry criticism. No body wishes money to be as h ''6p(jt"?Pc''(''t)t. Everyone rather dreads its beimre-, d'J<!ed t ''?opprcent. -kv?ry ou?, therefore, would readily ^onC,lr 'n whatever st'-ps the Bank Directors may .??"in w hatever st'-ps the Hank Directors may '?'o.j 't y -The period of angry censure is the to 8 rates. When money is at 7 per cent., a to ?'ounhitm?yheameasureof just precaution- ?Ug? t h?y be essential to mere safety—is always un- "P?.? the public, too, demands an 4tly  interet, of  public, too, pmiJ.Tlds air '-ioil to the diminution of the Bank 's treasure, b 41 rn Sense teachrs that it is much easier to keep money li V L,have, than to attrac?, money which we no longer  to attract ruoney whieb \Ve no longer' i,o I, ipe is sometimes cxpre?eed that we shall do nothing ? the b?i !iiericial measures" f M. Fould. How; t? "le "?themot)oy?hichbe is going to borrow will i''Qb?e?)c?'?!.we sh?H be better ?bie to discuss when we t?. Qvv lor Cei'tain what that use is. liut one thing is cer- Tj???'?iuwhattb:ttuseis. Hilt one thing is cer- h P??t I? measure of the ?'?? of Enlan.[ will or can ellt n. Foulù from having that money, even if the ??k "I'e b@r 1t on it. The French Government have solvent English bankers to pay a certain  th a t amuwitluodonbtedty be paid to its credit, h at ",Ir tl,. Bank of England may do or say. All which ?t¡ lj.k ?abto or would wish to do is to protect its <??? ft,s?? The effect of i ris?, in the rate of interest the payment of the French loan, but to sltfa.(.t ??moveab?e money to enable us to pay it. It (|°6s dim inish our liabiiities it strengthens our re- >*e» b ^ha' ?Foutd mean to <In with the money he has ?''fo?p'j'?ndror?hichbeiswiitin?topay6percent.,is ?tso e"lr. There are two opinions respecting it. Those tak ? ? '??ouruble vie.v Sty that he only wishes to have tK C;)rn'l>an^ a considerable sum of ready money in case ofthe4? per Cents., which he is about to con- 't,?"?"'? demand their principal. Such a u?e would be h ??Cet) Per ^oti y Proper, though C2,000,000 or tl,000,000 ?ould go 74 vca all if the 4? per Cent, ?tockholders should en h?cs? '?K rpp?y?ent. The annual mtercst of th,t stock is ?t?? ? 8ix and seven millions sterling. Still even a little ?r)g Nurie Illuld be b(,.tiefici-I aF, far as it went, and no one v"1(1 3ect to a financier's requiring il. On the other l1d a financier's requiring It. On the other ?Oj'.??ever, suspicious observers who are not disposed %it?e proceedings of the French Exchequer with a St??o??r?°) 'e eye,believe that this money is to be use d in Sff°ig b exPressive phrase, to" ng tiie market." They that A, "'°U^ '? "?3?"? money artificially cheap in .t9 Ett AI"ould is ruakirig money -Lrtificially cho.,ip in h????fth '? Bank bas just reduced its rate of discount to 4  -it t e moment when the Go'ernment is borrowing 4br,Eid'it 6er cent.) that M. Fould would benefit in two bv 5 ?'? in the French fund,; if the 4? per Cent. rise, (Ide's aI,e less lil?()Iy to ask for repayment, and more like, y to accept the terms he will offer to them if the ?Be ? Cents, t i se, the new Three per Cent?. which he re" Per Cents, rise, the new Three per Cent,. which he Ill b t to create, and which will be exactly like the old, 'U t, heated on better terms. Such objectors hint that ???'-sumlikuthatin question, though luiicrously 14 ad, 'late foil leÚlimate purp"se9, would be very sufR- ?tt., Two millions, or even fdur, are '?6? '?commensurate with the demands of the 4? per '?M[.?khotders if they unanimously asked for repay- ker, i  Iler ,-lm is a most efficient i,tiple- IQel\t 'f ??'?''hesma)lersumis a most efficient imple- >lf0r.Manipulating prices on a sensitive Boune. ^}Ve Ve no judgment of our own between these two 0 Pjlioug are, ? truth, loath to accept the unfavour- hbi, view; and we cannot think the evidence which is qefed for th I e favourable conclusive or sufficient. We '"h ? j?*'ther facts. All which is important to us is j the present state of the money market a sutE- ??bt]y '°u''ed loan like this to France is to us a con- j???tie?mQ?cideiit, not an occasion for regret. England is t How i. of business whose operations are tem- a man °f business whose operations are tem- id??ti?v ?spended, and whose capital is consequently lying t'he appearance. of a neighbour Mho wishes to borrow ???to give good security (for French <M? at 60 perfect (,CUf1ty for a few months), is ??Ppv ?? Fortune. So far from grudging the money, the kt to lend the money. We have only to see tOh' *1 1P J"I! it we manage with discretion and judgment, b't\¡at enQll1 it we manage with discreti"n and Judgment, t  e ?ot permit too much bullion to flow out un- t??'?'?.t we watchfully retain a sufficient banking r ?rve ■Economist.

1m -SPECIAL KNOWLEDGE.1

Mil. COBDEX'S PROPOSAL.111.

MR. MILNEK GIBSON AT ASIITON.

THE FORBEARANCE OF THE POOR.…

THE CAREER OF A Q c.

THE YELVERTON CASE.

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THE HIGH-PRIEST OF SPIRIT-RAPPERS.