The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-14
AMERICAN SHARES RECOVER
UNDER BUYING ny LONDON IN
VISITORS AT THE Low PRICES.
Week Opened with \ Tendency to Slump
Settlement Passes on with Only One or
Two EnimpOrtant Failures-ReasOns
for Increase In German Hank Rate.
.s,mtal Gable Despatch to THE SUN.

A"V sSuUtNTtBut Neutrality-suspicious.
for Increase in German Hank Rate.
s,nrtal Gable Despatch to THE SUN
LONDON. June 13.-Rarely OF late has a
week OF Stock Exchange operations COM
menced with such a pronounced tendency
TO slump as this last did, when, on Monday.
no department escaped severe setback
under the influence Of the overpower-
ing weakness of the American and
South African sections. In which the
settlement was then just beginning, The
severe fall OF prices in Wall Street last Sat.
urday coupled with the unexpected rise in
tho German bank rate to per cent. led to a
sharp all-round decline in prices because
they crushed the hope OF the market that the
Bank Of England rate would be lowered this
week and induced fears that gold would be
attracted toward Berlin This latter feeling
was engendered because considerable
amounts of money in favor Of Germany
have. according to the latest statistics, ac-
cumulated abroad. chiefly in the United
Kingdom and the United States, and this
intensified the unfavorablo position OF Amer
icar securities After Monday this position
became rapidly worse, until Thursday.
when n sudden start toward improvement
sct in on American railroad shares on the
Government crop report, which was dis
tinctlv more favorable than had been eX-
pected here
BUYERS wore not slow to avail themselves
Of tie lower range of values, and consider
able purchases were immediat ely made for
New York and the Cont inent. Despite
some slight in ermeciiate fluctuations the
better feeling was sustained and a large
business was done vest erday in the street
aft r the official closing time. Bullsh in
terviews wit leading New York fnanciers
contribute ed materially to the advance.
As i, was. the settlement reesed Of con-
trarv TO general expect ations, with only
one or two unimport ant failures. and this
morning the American market opened
again strong. The Bank Of England's
ret urn also aided the Improvement, showing
a considerable strengt hening of resources.
namely an increase Of fl,Q58.43l in coin
and CT ,42s $50 in reserve. or from 49>s to So
per cent Of liabilities
Since Thursday gold has continued 10
How into the country From Australia
fi736l3 has arrived and e2s6 900 is due
from South Africa tomorrow. Another
ST eamship has left Cape Town with $3.50 900.
The reasons given by President Koch
of the Imperial Bank Of Germany. for the
increase in the discount rate are, briefly:
First. the Reichshank has for a considerable
time been losing gold; secondly. at the end
Of June the demand for banking accom-
mediation will be unprecedentedly strong:
thirdly, Germany has been lending largely
to foreign countries: and, lastly. the money
position in New York. The latter, indeed,
NAV be said to govern the Contine ntal
money centres. In Paris money is abun-
dant, but there is disinclination to engage
in some undertakings. French investors
are carefully watching New York and will
buy largely II the prices OF the best Glasses
of railroad bonds yield from ~ to ~ per
cent interest.
Money and discount rates continue easy
in London. but an installment Of fs.0oO, 900
on the Transvaal loan is due on Tuesday
next and 1t is doubtful II the market will
provide this out of it's own resources.
although now, for the first time in nine
months. the market has been able to free
itself OF indebtedness TO the Bank OF
England.
The Servan regicde affected the markets
but little after the first nervousness in re-
gard to the possible effect on Continental
bourses had aased off The Falkan st ocks
however we're all few points down.
The Board OF Trade report for May showed
decrease in imports Of Ell ,43s 500. OF which
grain and -four. mostly from America.
we're responsible for nearly million pounds.
Imports of American ham. bacon and cot
ION were also largely reduced Exports
me sed fl4e,t05. notably IN iron, steel
and woollens for America. The feature
Of the exports was the better demand for
goods from South America. notably from
Argentina. where more favorable conditions
have increased the buying power of the
people