The daily morning journal and courier., 1906-10-22
STOCK MARKET FEATURES
THE SLUMP IN PRICES AND THE
 MONEY QUESTION.

as to the Outlook.
 The sensational raise in the Bank
 of England's discount rate and the con-
 sequent slump in prices of active Wall
 street stocks, brings the money ques-
 tion to the front again. It is rather ex-
 pected that London will dump some more stocks on Wall street to-day and dealers on this side of the water who have been carrying stocks in London because interest charges there were lower than in New York, are now to a large extent thrown on their own re- sources providing bankers here have not the means or the disposition to ex- tend their loans on securities collateral beyond the present level.
 Our New York bank reserves are none too plethoric and the west wants a lot of money with which to move crops.
 In this condition of affairs, Wall street says, 1t Is up to Secretary Shaw to open the flood gates of the treas ury and let loose $25, ,00O 900 or $30, ,00O, ,0OO of the gold therein to help out matters. This view Is also taken by London bankers.
 The Bank of France is able to lend aid to London in this crisis, and may do so, but Berlin and the Bank of Ger many, are in no position to give aid, a Y1d eboItI5 IA IN +o the gold demand from London to the German capital, the Reichsbank would very quickly raise its discount rate to z per cent.
 In view of the uncertainties sur- rounding the market including New York politics lively trading market is to be expected for couple of weeks but it Is not well to get too bearish all at once. The country's prosperity is still heregreat, stupendous prosperity The western railroads are unable to handle all the business coming to them and the iron industry is crowded to re- pletion with business. Stocks, however, sometimes go down in prosperous times when the money market gets tight all over the world and extraordinary measures have to be resorted to.
 Some of the Wan street opinions are as follows:
 Henry Clews says: T advise selling long stock hereafter right up to the time of election on all the good rallies. From now on up to that period long, stocks will constantly be pouring out owing to the uncertainty of the result of the election, The timid will be sell CTS rather than buyers meantime and in that way will be removed an im- portant force from the bull side of the market. The market should be treated simply for the present at least as one to trade quickly in. Prices are on pretty high level and people of moder- ate means are not justified in now buy ing on such a precipice top excepting they get in and out quick.
 F. s. Bache X Co.: It seems to us most probable that after election we will have an excellent bull market, with the Changers and Pacifics among the railroads and Amalgamated Copper and the mining and smeltlng stocks among the indastrials, the leaders.
 Arthur J, Singer, Of Charles G. Gates & Co.,. My belief In the common sense of the people does not permit me to think that Hearst will be elected I do not think the important market in- terests have distributed their stock holdings and later they will again be- come active Oh the advancing side"
 Prince & Whitely: It is not unlikely that we shall have nervous ffuctuat- ing market for the next day or so but we can see no reason to expect any serious further decline unless there is more behind the raising of Bank of England rate than is generally chases on any further reaction will prove profitable in the near future,
 R. M. Stuart Wortley, of Edward Sweet & Co.,: The advance in the Bank of Englond rate indicates a carrying over rate next week Of 8 per cent, rate sufficiently high to either force or to make the transfer of American accounts from London to New York imperative.
 c. N. Fairchild, of Charles Fairchild & Co.,: If the elections show that the socialistic element is gaining in strength we do not expect much of bull market and w edo think that prices will work considerably lower be- fore the next presidential campaign.
 Henry Stanley Haskins, of Lathrop & Smith: The market has shown some resistance to the depressing news from abroad and we are confident that high CT prices will prevail later on, as the underlying conditions are so eXtraordI- narily favorable.
 John P. Grier, of Bartlett, Frazier & Darlington; So far as the speculative market is concerned the result should be the prevention of any sharp advance at the present time, and we believe that it will take two or three weeks to place the market in position where it can be advanced without serious trouble resulting.
 Edward Moyse, of Edward Moyse & Co.,; The causes which led to the sen- sational advance of over cents a pound in cotton are rapidly disappear ing. Killing frost in Texas is the only thing to be feared from now on
 Dock Bros. & Co.,; This buying uf cot ton was based upon unfavorable wealth CT indications. the forecasts pointing to rain for two days practically all over the belt Colder weather is predicted, but there is no prospect of frost except possibly in Oklahoma and northern Texas. Cotton was for sale again on the advance, but the short covering continued and the gain was well held. ]