The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-12
FINANCIAL AND COMMERCIAL.
THURSDAY. Oct. II.

AAHN 'HNlV"y'N ~ SUI
strength that Il did yesterd az. but In the
last hour Of business a profit taking move
ment. wholly natural in Wow Of the risa In
prices that has been going N i~nterruptedly
for several days past, caused many Of the
earlier gains to disappear. A il was most
81 the leading stocks closed at advances
and the firm undertOne OF the market was
in nowise impaired. Even more generally
than was the case yesterday the activity
Of the market to-day embraced all the prom
inent issues, though especially noteworthy
strength was shown by the United States
Steel, Pennsylvania and Northern Pacific
stocks, The Steel common shares touched
50 for the first time since 1901 and the event
was received with no little enthusiasm on
the floor OF the Exchange, nor a the
present price OF the stock fail to be exceed
ingly gratifying TO the large numbered share
holders OF the corporation scattered over
the country who have held their stock ever
since the formation OF the company. In the
csse OF Pennsylvania il seemed to be re-
garded as practically certain that the direc-
tors Of the company would next month place
the stock Upon a 7 per cent. dividend paying
basis, while the buying Of Northern Pacific
was undoubtedly founded upon the very
reasonable expectation that the company's
stockholders would before long receive in
some form a distribution OF the equities that
have been created by the lease Of the North
ern Paciio's ore lands to the United States
Steel Corporation. The most significant
development in the stock market to-day
was, however, the strength Of the stocks
Of the local traction and gas lighting COM
panies. Gains OF a point or more were made
in the Brooklyn Rapid Transit, Consolidated
Gas and Metropolitan issues, and the sole
cause for this appeared to be a feeling OF
buoyant confidence that the Hearst candi-
dacy would meet overwhelming defeat.
As the rise in Union Pacific common stock
has been more vigorously carried on recently
than in any other quarter. so the fall in the
stock to-day was more pronounced than
elsewhere. Union Pacific rallied, however,
very sharply from the low point touched
by il and closed at only a very small net
decline.
The one event OF Importance to-day from
a financial point Of view was, OF course.
the advance in the Bank OF England's dis
count rate from 4 per cent. to S per cent.
though perhaps a matter more worthy
of note was the fact that the action of the
directors of the bank exercised absolutely
no adverse effect upon the security markets
anywhere. 1t had. in fact, been wholly
discounted. The bank made a poor re-
port Of condition. showing a proportion
OF reserve to liabilities OF 81. As per cent,
against 3S.5 so per cent. last week and H.47
per cent at this time last year. The drain
of gold from London to this centre ceased
some time ago and it is wholly probable
that il the Bank of England had not been
called upon to face Unexpectedly heavy
demands for money from Egypt its atti-
tude toward borrowers Of money would
rave remained unchanged. These Egg ptian
financial necessities are. it seems, directly
connected with the recent events making
for an advance in the price Of cotton and
the brisk speculation in the commodity
which has been started in Egypt no less
than in our own country. There were
many indications to-day that the Bank OF
England would have no very great difficulty
in speedily replenishing its Golfers. The
bank will undoubtedly secure, without hav-
ing to meet any competition, the ESO0,OOO
in gold that il due to arrive in England
early next week from South Africa. and
to-day sterling in Paris rose to the very
high figure of rs francs 81 confines. a figure
above hat at which the directors Of the Bank
Of France announced a few weeks ago
would result in a release Of money from
the French institution for the benefit OF
the London market. Here to-day the re-
laxing tendencies in the money market
showed no abatement. The bulk OF the
call lOans made we're at 81 per cent, and
there we're few borrowers OF time funds
who paid more than So per cent. for money
for their accommodation, save. Of course.
when low grade collateral was offered. 1t
is a fact that yesterday a leading banking
institution lent a large sum OF money for
six months at S per cent. to a Wall Street
commission house. the security offered
being, OF course, Of the hest. Sterling
exchange here to-day rose at the outset
half a cent a pound in response to the ad-
vance in the Bank OF EnRland's discount
rate, but fell again, making, however,
considerable net advance for the day.
Prices again moved feverishly back and
forth on the Cotton Exchange, the impelling
cause here being the early thrush Of cold
weather over the cotton belt.