Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-21
Stock Markets Taken by
Surprise.
DISCOUNT RATE SAME
OPERATIONS FOR FOREIGN AC-
COUNT ON AVERAGE SCALE.
Little News Of General Consequence
New York and Washington
Closing Lists.
Special Dispatch 20 The Star.

Special Dispatch 10 The Star.
NEW YORK, September 21.-The inter-
national stock markets were plainly taken
by surprise today by the announcement
that the Bank OF Engiand's rate of dis
count had been retained a 8 per cent This
unexpected circumstance led to general
and considerable buoyancy in the London
stock market. and American railway shares
participated fully in the improving tend
ency at that point. Operations here for
foreign account were upon a fairly large
scale. with purchases predominating.. The
days transactions measured well up to
those of yesterday. and some slight increase
in the activity of commission houses was
reported. There was little news of general
consequence either previous to the opening
of business or subsequently. Money on
call ranged between 3S and 4 per cent for
all practical purposes. and while the news
agencies were misled in the early part OF
the day In the quoting Of Az per cent
rate. the fact was that up to that time no
loans had been made at that figure.
The widely disseminated quotations evil
IDENTIFY served to impress the speculative
imagination and led TO quite a general al
though not pronounced. reaction in prices.
Sterling exchange was distinctly easier,
Notwithstanding the retention OF the Bank
of Englands discount figures at percent.
The bank showed q slightly smaller per-
Centage OF reserves TO liabilities than was
reported last week, and open market dis
count rates were quoted closely at parity
with the banks discount figures. The
days advlces from the corn belt set forth
the continued absence of frosts. but all
the commodity markets were steady. The
most important news OF the day relating
to particular stocks had to do with the
definite announcement of the purchase of
the Cincinnati. Hamilton and Dayton sys-
TEN by the Erie Railroad Company, and
the implied connection between the Met
ropolitan Street Railway and the Public
Service Corporation involved in the an
nouncement with respect to the new North
river tunnel. The Erie issues were COM
paratlvely heavy today presumably on
misgivings to the methods which will. be
followed in the financing of the purchase
of the Cincinnati, Hamilton and Dayton
property.
At the opening of business advances were
common In practically every quarter. and
in many were sufficiently extensive
to invite heavy proft-taking sales. All of
the stocks identified with the Northern Sc
curities Company continued firm, on the ex-
pectation that some extra distribution OF
equities to the shareholders will shortly be
announced. Generally speaking. the other
higher priced railway shares were firm also,
although In most instances the sharp ad-
vances made at the outset of the market
were materially shaded. The market result
of this mornings announcement respecting
the new North river tunnel was a rapid ad-
vance In Metropolitan Street Railway, and
thettcally firm The Industrial stocks showed
the same irregular tendencies that charac-
terized the dealings in the railway list.
very firm undertone prevailed there,
Notwithstanding which there were many
substantial recessons from the maximum
advances made In the first hour of business.
The corn products stock showed renewed
strength. quite sharp recovery was noted
in NEUTRALITY-SUSPICIOUS. Chemical and ANAL
gamated Copper. and the United States
Steel shares were well supported. Some Of
the pressure which has been evident
Gently in the instance of Virginia Carolina
Chemical has apparently been based upon
the idea that the company would be suf-
ferer on account of the shortage in the
cotton crop. AS matter of fact. the cur
tallment in the yield of that staple has oc-
CURED largely west of the Mississippi
river. in which section the Virginia Car
DINA company sells limited amount OF
fertilizers. and the distribution of Its prod
net there Is apt to be increased in conse-
quence OF this year outturn OF the Texas
cotton crop.