Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-28
Advance in Bank of England
Discount.
CALL MONEY HIGHER
REFLECTIVE ACTION ON NEW
YORK MARKET.
Put Quietus Upon Activity Today
Closing of New York and
Washington.

Special Dispatch to The Star.
NEW YORK, September 2S.-The Bank of
England this morning announced an ad-
vance In It's minimum rate of discount from
to per cent. and in the early part OF the
local business session money on call ad-
vanced to ) per cent. These were the main
developments in the financial situation to-
day. They had the effect of putting a
quietus upon activity in the stock market.
An advance in the Bank of England's rate
of discount has been commonly expected
in view of the banks position and the quo
tations for money in the open London mar
ket, but there had been some doubt as to
whether the bank would establish its Off
cial discount figures at 81 or per cent
The banks weekly statement made a rather
poor showing, the proportion of reserve 10
liabilities declining to 4U.u3 per cent, against
44.Sl per cent last week. The statement
also showed an expansion in loans OF more
than t3.60o,Gvo. decrease in reserve OF
more than t1.go0,VOo.
There loss in bullion of 6oo,Oo0
pounds sterling.
The advance in the local money market
was not remarkable in view of the general
circumstances of the monetary situation
and the period of the month. At the open
Ing OF business there were moderate oner-
ings of money on call at Az per cent, but
the larger banks also advanced the rates
standing loans to ) per cent, and the
Dulh VI the udy DOIIO"iuS was diidIScu
fer between that figure and IA per cent.
he variations in rates from those figures
were of no particular significance. The
slight furry in money naturally served 20
increase interest in the probabilities Of the
weekly bank statement the outlook TOR
which can hardly be regarded as suspicious.
There were further transfers of currency
through the subtreasury today to interior
points, and this mornings figures of the
operations between the banks and the sub
treasury Indicated loss by the former OF
more than SoUOO,D0.
There will, presumably be a further cur
tailment in the banks loan account on Sat
urday's bank statement, but obviously TINS
process cannot be continued indefinitely.
Sterling exchange reacted ma terially in
connection with the advance in the Bank of
England's rate and the rise in the local
money market, but was still quoted at pro-
hibitive figures so far as gold importations
from England are concerned.
Advices respecting the progress of the
crops are satisfactory, and an authoritative
trade journal In its weekly summary re-
ports no abridgment of the favorable in
duences for maturing the crops, and also
that the corn crop was now nearly all yir-
tually secure from injury from frost. In
ternational and domestic money market af-
fairs virtually monopolized interest to the
exclusion of other considerations. There
was. indeed. little news relating to the in
dividual stocks, save that provided by such
routine matters as dividend announcements
ana earnings statements. included In the
former was the declaration of the usual
quarterly dividend of pa per cent on Della
ware, Lackawanna and Western. The stock
market was practically stagnant for long
period and the trading seemed to be ex-
clusively for professional account. In con-
sequence the rather heavy tendencies which
were displayed possessed no great signifi-
canoe.
The London stock market was only mod
erateiy Influenced by the advanced bank
discount figures that event being referred
to as having been discounted Operations
here for foreign account had On balance
trihing net results. In few cases did fluc-
tuations in individual stocks pass outside
of fractional limits, and observers of the
dealings reported a rather striking alb
sence of genuine pressure upon the market
in view of the general circumstances under
which the dealings were conducted. South
ern Pacific was the leading feature in re-
spect of activity. and was exceptionally
firm quite definite reports that divi-
dend payments on the stock would be in
stituJed in November Illinois Central ad-
RANGED rather sharply In the early part of
The day, but failed to retain the whole of
its rise. Price movements and the gen
eral characteristics of the dealings in the
Local traction shares and the Industrial and
miscellaneous issues were in accord with
those in the railway list.