Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-21
BULLS AND BEARS

special plsna tch-to The star
NEW YORK. February 2l.-'rhe Bank a.
Norway has reduced IT'S minimum rate OF
discount n Of per cent to ) per cent The
last previous change made by the bank IN
It's rate of discount was on December l..
iast' when II was advanced 70 So per cent
on June 10 last the rate was raised ;, OF /
per cent to per cent
~
According 70 the best Judges Of money
ana credit conditions. both domestic and
International. Wall street will have a com
portable though not necessarily an easy
money market this year II there is any
thing In the theory that under certain ctr.
e,umstances the leading financial Institutions
" order TO protect their Interests A. fro,n
time TO time apply money ma rl,.t bralxe, A.,
speculative activity. IL would seem thar the
circumstances are likely 10 DE surb for ~,
ny Few months as to make such protec-
i've measures practicable. The stock-trad-
ing community is now more sens tive to a
naruellhg In the rates for money than at
any time since the early part OF fog3
such jump IN the call money rate a.
that which occurred yesterday afternoon, ia
otteh owing to nothing more important than
the refusal Of some omnscient broker to
AK on MS necessary money supplies early
III the day when the offerings are free be-
cause he knows that the bankers are SIM
ply ~ lying y to gouge the brokers'"
lie Is confident that he has read the stc,s
or the money market more acr,,r, t.t,, 81,
the bulk OF his fellows who are confent 10
pay tie going rates. and he waits ,IntU tba
49,, 49, MON expecting money TO be offered
NV"h Iof some lenders who failed IN nut
out al the loans they wished to make
sometimes he caves few dollars biz pur-
Suine these tactics. When he has made a
Lis'ake ne loses good many ,iollars
One brokerage house and tbat -, = i,
one. which has figured I'm similar episodes
beiofe, Did the money rate IN on jfseif ~
per cent yesterday afternoon although II
could nave obtained plenty OF money
around midday at AZ 10 IL nor cont
Brokers make these mistakes usually after
money has been little tight as lately and
mas begun to relax. Sometimes however,
Delated Borrowers would bid for money in
the afternoon VIXEN the market is in a
period of protracted ease only to find that
the lenders have withdrawn from the mar
pour In.
In seven months of the current fiscal
year. from July l to January II. the Bal
timore and Ohio increased net earnings
s2,3sl .2+S, and this Increase alone will take
care OF practically half of the fun > per
cent dividend on the common stock. Other
large railroads have similar important
story to tell.
Public Ownership OF Public Ttflltles''
substitutes outgo for income. even II such
ownership does rot mean free ferries and
free railroad travel. Payment OF franchise
taxes becomes payment of interest on the
public debt, non-taxable municipal bonds
take the place of taxable corporation secu-
rites.
Chicago, not New York, cgaln comes to
the front With a tale OF banking trouble
A curious story comes from Pittsburg to
the effect that the Pennsylvania railroad is
planning to purchase the Atlantic Coast
Line system. The story says that negotfa a
tons for the requirement Of the Atlantic
Coast Line are about ready to be concluded
and that the Pennsylven MIA has an option
on the majority OF shares of the system at
$40 share.