The Washington herald., 1906-11-16
STOCK BOOM KEPT Up
Advance Due to the Strength
Shown in London.
MONEY RATE AT LOWER Level
RumOr Of Deals Whereby Union Pa
eihc Was to Take over the st. Paul
mon stock of Latter Road-ROck
Island Was Also in Demand.

New York, Nov I5.-The stock market
made a further gratifying response to
what were seemingly renewed evidences
of distinct Improvement in financial con-
ditions
Before the opening Of business here the
prices Of American stocks IN the London
market were all quoted At advances over
yesterdays final figures because of the
general strength Of ali OF the active Sc
curities dealt in on the London Stock Ex-
change, owing. primarily. TO the highly
satisfactory weekly report Of its condition
issued by the Bank of England.
The banks exhibit showed that during
the week the institution had enlarged its
gold holdings by nearly $5,000,000. and had
decreased its liabilities by Si,OO0,0O0. rails
ing thus its percentage Of reserve against
liabilities to 1925 per cent, as against last
weeks percentage Of 3S33
Although the reserve held by the bank
is still admittedly low for this time Of
year. the position of the institution is
now so strengthened that all ideas of an
advance in its discount rate before the
close Of the year necessarily disappear.
The cheerfUlness in London was reflect
ed in the more optimistic sentiment on
all the European bourses and in pur-
chases here for foreign account Of as
was estimated. 40,000 shares Of stock.
News regarding the progress of negotia-
Jions between the railway managers and
their men in regard to wages was favor
able again from stock market point of
view. and both call and time money rates
moved 10 a lower level. Six and a half
per cent was the highest price paid for
call funds to-day, against per cent yes
Jerday. and the majority Of the days
loans were made at .. as compared with
a prevailing rate yesterday Of per
cent.
Time Money shows Weakness.
The weakness in time money was even
more noticeable, and from a speculative
point of view, more important Six
months loans to-day commanded no more
than per cent, while 60 and so day
money ruled at between : and IL, as
against the higher rates of a few days
ago.
The supply OF time money was still. Of
course, limited, and funds OF this class
were by no means pressed upon borrow
ers. Nevertheless, Withdrawals Of high
bids recently made for time funds were
general in the financial districts As a
natural consequence Of this. sterling eX-
change rose a little, but the governments s
statement Of our exports Of domestic
produce for the month of October. pub
lShCd during the morning. testified en-
phatcaly as TO the means currently Gre
ated in the ordinary course Of trade OF
paying or our foreign Indebtedness.
These exports increased for the month
nearly 50, 100000 over those OF October a
year ago, almost Sl9.OC0.0lJ of this Increase
being made IN of enlarged shipments Of
cotton. Exports Of cotton during the
month were, indeed, the largest on record
for q corresponding period
Although the course OF the market to-
day was little more irregular than it
has been of late, it was stlu definitely up-
ward. L opened with an outburst Of
buying. followed by q couple Of hours Of
realizing sales. Another tine Of strength
ensued, and finally a second period of
profit taking
The price of St Paul common stock
made another new high record on the
present movement, but a relatively small
net gain for the day; while gossip con
corning the reason for the great advance
IN the stock during the present week
formed the greater share Of discussion
concerning the market in the Wall street
commission houses.
1t must be said that numerous INQUIRIES
that We're addressed to the officers and
large stOck-hOlding interests Of the com
pany regarding the truth Of stories Of
deals Of one kind or another affecting
the stock, and, particularly OF a rumor
current to-day that an arrangement was
IN hand whereby Union Pacific and South
ern Pacific were TO offer 10 take over the
st Paul common shares upon a guaran-
teed 10 per cent dividend thereon. met
with an unqualified denial.
VIII Authorize Stock Issue.
II is, Of course, well known that at some
time within the next few months the
ST. Paul directors will authorize an issue
Of a part. or it may be the whole Of the
S75,000,0C0 stock recently authorized by the
stockholders Of the company 10 provide
the funds to complete the extension to
the Pacific coast. It does not seem likely
that this stock will be put out in the
present state Of the money market. and
close observers in the dealings in securi-
ties have ventured it as their opinion that
the advance I'm the price has been due
more than anything else TO the discovery
OF the fact that floating supply Of stock
in Wall street has been reduced by ab-
sorptiOn TO a very small quantity.
Another market movement to-day that
attracted attention was the large buying
Of the Roc, Island preferred and com
mon shares, principally the latter. The
volume Of transactions in the Rock Island
common stock reached over 1O0, 900 shares.
and was the largest in this issue for many
months. No explanation Of the movement
was forthcoming other than the general
one that the prospects OF the Rock Island
property have greatly improved OF late
West.
The official announcement made to-day
Of an increase Of $26.O00.000 in the capital
stock Of the Pullman Palace Car Com
pany, the new shares being given 70 the
present stockholders as a stock dividend
was. Of course, matter that had been