THE WORLD’S FINANCES.

Gisborne Times, Volume XXV, Issue 2157, 13 August 1907, Page 2

THE WORLD’S FINANCES.

DISQUIETING RUMOURS OF INTERNATIONAL TROUBLE.

(Special to Times.)

WELLINGTON, August 12 To-night’s Post points out, apropos of the disquieting news regaranng the financial position in London, that the recent optimism of tho Chancellor of tho Exchequer must .bo rudely shattered by the dramatic course of events recently on tho London Stock Exchange. The Stock Exchange, adds, has witnessed tho “hammering of some 40 of its members already tins year, and such, eminent financiers as Audio Monde!, tlio promoter of Loviathan ’concerns of tho typo of L® l ' rod’s stores, Paquin Ltd., L. it. Lvans, and Louise Ltd., have been compelled to consult their creditors. Iho settlement should commence on »euliesday and exitends over three days, and an indication of tho muscling ol the hank for the strain was given by tlio Bank of England’s holding of coin, which shows an increase of over I a million compared with last week s figures. A grave feature of tho cable nows is the slump in Homo railway shares. Those securities take rank in tile estimation of hankers second only to bills of exchange covering hypothecated shipments, and therefore they are loaned upon with a comparatively fino margin. Consequently a heavy drop will involve thousands of people who have deposited them as collaterals, and who in a collapsed market and restricted credits are unable to make good lost margins. It is stated that Germany has been a heavy sellor of consols, which may mean that the tremendous industrial boom is at its last gasp, and that tho great Continental manufacturing nation is husbanding its resources for the inevitable aftermath. Also, a pronounced slump in English rails may. point to reduced earnings both from passengers and freights. The position is too serious to he explained away by the plausible theory that the investing public realise the true value of consols, and are list willing to take them unless they show a reasonable rate of interest. It tells rather of a demoralised market, and that the great stream of international trade 1 and finance is ruffled oil its surface, > and in its shallows and rapids there will be many wrecks unless the hanks ; can liuov tlio fairway.”