The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-09-11
RECEIVES A JOLT
BANK OF LONDON SURPRISES THE
FINANCIAL SITUATION.

Advances its Minimum Rate of Discount
One-Half Per Cent, to Two snd One
Half Per Cent-Action Expected, But
hardly SO soon-Astoniehment Greater
Abroad Than on This side-What rhs
Action Indicates as Affecting the I'm
portatior of 6oid-Stock Market Closes
Weak at Declines-Bonds Weak.
New York. Sept 10--The stock mar
| ket today was resctionary on decreas-
ed volume Of business The profession
al character of the operations. 10 which
attention had repeatedly been called
was as clearly evident as heretofore,
and the developments Of the day worked
| to the advantage Of the bears. At the
| outset a chill was experienced on the
announcement that the Bank of Eng
| land had advanced its minimum rate
Of discount IL per cent, 10 21-2 PEI
cent. This news operated adversely,
| on two accounts, the action causing de-
| preston in British home securities as
IN the American department, and it also
encouraged theories Of check TO the i'm
| ports Of gold TO this country. which
have served as an urgently DECIDE safety
valve TO the money market. The adj
vance, strangely enough, appears 10 have
been more OF surprise in London than
| it was inWall street, but the best infor-
| nation is that the movement OF the
I metal Of this country, being entirely
natural, cannot be impeded except by
extraordinary action. This conten-
| ton is sustained by the withdrawal Of
about s., 2s0, 900 in gold from the Bank
| Of England today for shipment TO New
York. The Bank followed up its ad-
vance in the discount rate by increas-
| ing the selling price Of eagles one-half
penny, to rs 1-2d per ounce. Today
| additional arrivals OF gold and orders
! for future delivery were announced,
| bringing the grand total OF engage
ments to about s25.s7o.0 900. OF the si.-
| 252,0o0 that arrived today about $1,000
600 was deposited at the subtreasury in
exchange for greenbacks- The SUBJ
| treasury officials estimate that deposits
OF the past three days. when figured on
the treasury reserve, will bring the net
| gold holdings up to about 100000.
The exchange market was irregular,
Of $4s4 1-2 for so day bills, but his con-
dition was offset by a sitter tone in
money rates, though without appreci-
able change in rates and by an unfav-
orable government cotton crop report.
In addition, uneasiness was created by
the failure Of another New Orleans
bank, resulting in recourse by the
other institutions Of that city 10 the pro-
lection offered by the clearing house
rules. The expectation of an increase
in the dividend on St. Paul common
stock at today's meeting OF the direc-
tors has not been general, but the an
nouncement OF the regular disburse-
| ment nevertheless appeared 10 unfavor-
ably affect the temper OF the traders.
The situation was rounded out from
the bear standpoint by reports OF fur
ther cutting in transportation rates.
The market opened weak. After a
brief interval prices steadied, but re-
rewed bear pressure forced general de-
clines ranging from 1-2 TO 2 1-2 per cent
IN the active issues. St Paul touched
and closed at SO SIS per cent, as COM
pared with 20 5-S per cent, the final
sale Of the previous day. Steadiness
again ruled toward noon: but the rallies
were unimportant. The reactionary
UlONcHc1t was pEhClACdlIy uui c1CNcu
up to the close, which was weak at de-
cltnes of 1G2 per cent in the active list.
The total sales of stocks today were
1s7. 544 shares, including: American To-
bacco, 500; American Sugar, 1890; Bur
lington and Quincy, II 600; Chicago Gas.
$500; General Electric. $500; Louisville
and Nashville. II. 500; Manhattan. $500;
Reading, 1900; Rock Island, 1000; ST.
Paul, 3d. 500; Tennessee Coal and Iron.
$500; Western Union, $500; Wheeling
and Lake Erie, 1850.
Bonds were dull and weak. with the
principal loss in the speculative issues
and ranging from 1901 "a per cent. The
sales were &607. 900.
Governments were fractionally lower
On sales OF ss5, ooe.
FOREIGN STOCKS AND MONEY.
New York, Sept. 1o-Evening Posts
London financial cablegram:
The stock markets. opened steady to
day, but ohe railway market gave way
sharply on the rise OF the Bank OF Eng
hand rate. and after a partial recovery
closed fat at the lowest price OF the
day. Corlsole went down one point to
111lk. Home railways were also affect
ed and all were weak. Americans and
other speculative stocks al fell sharply.
but Americans closed a fraction above
the lowest, on the gold exports. The
markets. however. were thoroughly I'M
settled and disorganized- The dealers
have been 90 accustomed for two and
a half years 20 discount rates that the
change, although rational. comes as a
shock to the market when prices were
abnormaliy higher.
The issue Of 5000. 600 pounds Chinese
gold loan at % Is expected 10 be announc
ed tomorrow evening at Berlin
Bankers and discount houses have
raised their deposit rates 10 1 per cent
The rise in the bank rates was quite I'M
expected today, although an advance
month hence was looked for.
London, Sept 10-The hank has adj
vanced the price Of American eagles I'D,
to 76s I'D. Coneols closed at 111ss for
money and 111A for the account de-
cine OF : from yesterdays closing.
Consols closed last night at 112 SIS
for money and I1eS for the account
They opened at 1117s for money and III
1916 for the account
London, Sept. lo.-Gold IS quoted at
Bevrnos Ayres today at 1880: Madrid
1925: Lisbon ga: Rome 1oS.e7;z.
Amount OF bullion Withdrawn from tn.
Bank OF England on balance today as
900 pounds.
LOANS AND CLEARINGS.
New York. Sept 1o.-Money on call
steady at al 5as per cent; ias- loan
per cent; closed offered per cent; prime
mercantile paper nomirally 9as PR
cent Sterling exchange steady with &C
t,IaI BUSINESS In bankers bills az As3[
a4s flor demand and 81 SCI. al SCI for
50 <iay0s. Posted rates 81. s4ai. se1a and
a. s4sa4s4is. Commercial bills HH
Bar silver IS. Silver certificates ssisas7.
Boston. Mass, Sept 1o--Clea-ings 81,