Los Angeles herald., 1906-10-23
BY Associated Press.

NEW YORK, Oct. 22--There was a
violent rebound in prices OF stocks TO-
day which went far to wipe out the
heavy decline on Friday and Saturday.
The market opened today showing some
important developments and gave rise
TO rumors of others of still greater i'm
portance. The consequences was re-
vuson in sentiment which sent stock
operators scrambling to buy stocks who
had made desperate efforts to sell them
at any price on Saturday. Much OF the
selling on Saturday was in the nature
of short contracts.
There was something more than sem
timent in the eagerness to secure stocks
on the rapid rise today. In fact there
was @ considerable subsistence in the
form of demand when the needs or the
uncovered short interest had been sup
piled. AS there is no loan made at the
stock exchange on SATURDAY loans
made out Friday carrying over untll
Monday. the rush to sell on Saturday
must have been based more on appre-
hension of a pressure to come than on
any actual curtailment of credits.
Results of the Bank Of Englands 8
per cent discount rate in the worlds
market were much less than were
feared. In this market call loans We're
lending at per cent, and fell back
nromptly to per cent, and later in the
day to considerably below that point
This could not have been due TO any
gctual replenishment OF supplies over
those available on Friday. Very con-
that relief measures would be forth
coming. The nature of this bel1ef was
left mostly in the realm of conjecture
during the day. although there was
creditable authority for the current De-
lief
The first of such measures to receive
attention was the rumored agreement
Of the Bank of France to transfer as a
loan $50 100000 to s40000,000 to the
Bank of France. There is great con-
tidence that the Bank of France could
really afford to do this and the conser-
vative safeguarding or It's gold holdI
ings by that institution is attributed
largely to precautions against possible
cventualities in Russia rather than to
any defined requirements to be met.
The presence in New York of the sec
rtary of the treasury was accepted as
assurance that treasury measures of re-
lief were to be Forthcoming for the New
York money market. 1t was the COM
mon assumption that the redemption of
the per cent bonds of the government,
which mature next year, would be an.
tcipated with an offer which allowed
the government some saving of inter-
est to the time of maturity based on the
nresent price of bonds in the market.
Further deposits OF government funds
with the national banks also was re-
garded as possible recourse. The as
surance felt that one of the other al
ternatives would he adopted was meas
ured by the tone of the money market
and by the confidence with which stocks
SOld l1SI week were TeDOuSll.
The time money market held strong.
however. and no loans were made below
c per cent while for sixty and ninety
days the asking rate was advanced to
65 per cent. The amounts offering at
these rates were reported small. AnX-
iety over the effect seemed to be much
alleviated. The understanding that
many of the finance bills maturing in
the immediate future in London have
privilege to renewal for a defin ed period
had something to do with this sentl-
ment.
The market was regarded as an am
ple demonstration of continued control
by the financial powers which have
domina ted the situation for some time
mast. The failure of stock exchange
member was without effect on the mar
ket. The days extreme advance OF 9lh
Of Anaconda. Z for Northern Pacific. A
for ding and Northern Pacific. az
for Union Pacific. St Paul, Amalga-
mated Copper and Smelling and one to
three points in many other active
stocks serves to indicate the important
extent OF the recovery from last week.
severe losses. The market closed
strong with the gains well maintained.
Bonds We're firm, Total sales, par
value. S2164,000.
United States bonds were unchanged
on call