The San Francisco call., 1906-10-20
Bank of England Raises
Discount Rate to Six
Per Cent to Hold Coin
STOCKS AFFECTED
BY ANNOUNCEMENT
Heavy Flow Of Money to
the United States Causes
London Financiers to Act
SPECIAL DISPATCH TO TIE CALL

SPECIAL. DISPATCH II IhE GA----
NEW YORK, Oct. Is.--What is be-
iieyed 10 be a great struggle Of inter-
national extent, involving the BaRk Of
EnxIand and the National City Bank
of New York, was brought te the sur
face today when the Bank of England
convuIsed the money markets of the
.v0rid By unexpectedly advancing its
minimum discount rate TO 8 per cent
Incidentally. the Treasury Department
Of the United states is drawn into the
clash, If the Interpretation which Wall
street placed on the surprising action
of the English bank is correct.
IN brief. the Bank of England made
4 remarkably high bid for money and
gold supplies which the National City
Bank and ether smaller Institutions
were ebtafafng in the four quarters of
the globe By reason Of Secretary shaw's
device 20 assist gold imports through
free treasury advances.
The advance in the Bank of Eng
lands discount rate threw the stock
market into confusion at ehe opening
There was dIsorderly break in prices.
caused by heavy unloading Of spec
Native accounts all through the list.
The first sales OF Union Pacific were
OF 1900 shares at -lszz and 1874.
compared with 1871 last night; Anal
gamsted Copper, 1900 shares at I14A
and ia. compared with 1853 last
night. Reading. 5000 shares at 1zs1z TO
1zs. compared with 1881 last night;
q United States Steel, 5000 shares at 47zs
and an. compared with IS last night.
Anaconda broke six points and Great
Northern preferred 50.
Losses Of TO ~ were shown by
s.. Paul. Northern Pacific. Pennsyl-
vania, Canadian Pacific, Delaware and
HUDSON. Brooklyn Transit and Smelt-
ing. and from Il to = by Atchison.
Baltimore and Ohio. and Southern Pa
cihc. The declines generally ran from
large fraction to over a point.
GERMANY IN MARKET.
LONDON. oct 1s.-The Bank Of Eng
land raised its discount rate to 6 Per
cent this morning. Changes in the dis
count rate OF the bank on any day ex-
cept Thursday have been few and far be-
tween. and not since November Z, 1880
lust before the Barring failure. has the
rate been put to per cent The re-
lapse in American exchange, indicating
renewal Of the demands for gold and
the probability Of large Withdrawals
OF the metal for Egypt seemed to have
contributed TO the action taken by the
Bank Of England today
The sum Of $4,000. 600 in gold. which
left the bank today. is believed to be
destined for Egypt, while financial cir.
cies anticipate very large purchase.
in behalf OF the United States. IRE
spective OF whether the rate Of ex-
change does or does not render the
transaction profitable
Reports are also current that the
Imperial Bank OF Germany is conduct
ing a large bullion movement for Rus
sian account, while Argentina is in tn.
market as a purchaser of gold. The
multiplicity OF the demands for th'
metal. II is pointed out. emphasized
the necessity OF protecting the already
depleted reserves OF the Bank Of Eng.
land. Consols for money declined I'll
to $50 after the announcement of tn,
increase in the bank rate.
American securities were depressed
Union Pacific lost Z and the rest o.
the list 4 TO q. compared with yes
terday's closing.
The increase in the discount rate wal
a complete surprise TO the members O.
the Stock exchanges. Prices gave wa,
sharply. and at o'clock consols showes
2 further loss of 4. being quoted a
ssk at that hour Other gilt-edgeS
securities declined in sympathy
The American section continued I,
feel the depression and late losses
u ranged from Y TO I%
SIXTY MILLIONS ABSORBED.
As the directors OF the bank sepa
rated yesterday without changing tn,
rate OF discount. it is assumed tha
they have since received information o