The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-03
FINANCIAL AND cOMMERCIAL.
TUESDAY. Oct, 2

While the last price Of a number OF active
issues In the stock market to-day was
higher than the final quotations OF the
same stocks made yesterday, prices for the
great majority Of the prominent shares were
lower. and the market, taking the day a 8
whole, was irregular up to II not exactly
exceeding the point OF weakness. In the
forepart Of the day the advancing move
ment that entirely governed the market
yesterday made further progress, so that
before midday recoveries OF from three TO
seven points In the prominent stocks from
the low quotations made in the latter part
Of last week were common. But again, as
has 20 often happened in the iast thirty
days after a sharp movement In the market
in one direction or another, a period Of
dulness set in, followed IN a short time
by a reversal OF the trend previously fol-
lowed. Superficial conditions to-day seemed
even more favorable to an advance in value
than they did yesterday. Confidence con-
corning tho result Of the elections next
month appeared to be sven more strongly
felt in the financial community than IL has
been at any time since the candidates OF
the respective political parties were named.
The Cuban situation was absolutely q nom
entity as a stock market factor. and above all
the monetary outlook cleared in a rather
definite way. Call money rates q at one
time as low as ~ per cent. and the great
bulk Of loans made were put out at Q per
cent, although by no means the full amount
Of the money recently disbursed in dividends
and interest on the first Of the month has
been returned to local financial institutions.
There were no higher bids for time money
to-day than the legal rate, save for very
long periods or when inferior collateral
was offered; and all this weakening Of the
money market is the result, naturally, Of
the recent large importations Of gold and
the release Of public funds by the Secretary
Of the Treasury. Discount rates were also
easier to-day in Paris and Berlin and a little
more gold was engaged for our account in
London. The general opinion in banking
circles appeared to be that were it not for
the possibility that the Bank Of England's
discount rate might be raised on Thursday
to 5 per cent, an even greater reduction
in time money rates han was to-day wit
messed might have occurred. The view
taken at the close OF last week, when there
was a recurrence Of further large with
drawals OF money fromthe Bank Of England,
was that nothing but another drastic adj
vanc in the Banks rate would suffice to
protect the gold holdings Of the institution.
Takings OF money, however, from London
for foreign account have been less thus
far his week, and the directors Of the Bank
Of England are naturally unwilling to make
such an interference with business in their
country, except in case Of absolute necessity,
as would be implied in an elevation Of the
banks discount rate to 5 per cent. 1t is
regarded, therefore, as an open question
what the action Of the directors OF the bank
on Thursday will be.
While the general stock market was
advancing this morning the Distillers
Securities and Toe Securities stocks de-
clined with some violence. These are
stocks in which a large advance in price
has recently occurred, unaccompanied,
however, by any notable degree Of public
support, and the decline in the shares
to-day therefore did not check the up
ward course Of the general market. The
drop in Distillers was due presumably
to the announcement OF the opposition
raised by a number OF the stockholders
OF the company 20 the execution Of plans
that have been framed for the entrance
Of the company upon the manufacture
Of denatured alcohol. As much of a factor
as anything in the recession in the market
in the afternoon seemed TO be the selling
Of stock by spectators who we're disap-
pointed because no Official announce
ment was forthcoming, a. was expected,
regarding the conclusion OF the "ore deal"
between the Great Northern Railway and
the United States Steel Corporation. The
most interesting occurrences anywhere
in the financial community to-day were
on the floor Of the Cotton Exchange. There
tho prices OF the cotton futures principally
dealt in advanced before noon nearly a
third Of q cent in the pound beyond their
half a cent advance OF yesterday, fell
sharply when the Governments report
Of the condition Of cotton on September IS
was made public in the early afternoon.
ana then later rose to higher levels than
ever. The Governments statistics made
out tina the condition o. cotton had de-
clined six points during the month OF
September, but the observations On which
these figures were based were made be-
fore the recent destructive storm in the
Gulf States, ana the prevailing view in
the cotton trade to-day appeared to be
that a crop Of cotton in the current season
very considerably under the estimates
made a month ago must be looked for.
Another matter bearing upon the price
Of the staple to which attention has been
from time to time directed in :nis and
other columns Of The Sun has been the
very short stocks of cotton in England
and the Continent Of Europe. Never
theless, up TO within a few days since
speculation for the decline was particularly
active in cotton, with the result, taking
all in all, that a large short interest in the
commodity has suddenly found itself in an
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