The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-12
FINANCIAL AND cOMNERcI.AL.
WEDNESDAY, April II.

LAVFe engagements OF Bolu LOT export,
which were clearly foresha dowed by yes
terday's break in 9 terling exchange, put a
very different face to-day upon the security
market from that which was sho wn in the
in the London market were all higher before
the be ginning of business here than they
closed yesterday, and there were very early
rimors that a large amount Of gold had
been purchased in London for our &C
count. Opening prices Of stocks we're
therefore above their final figures of yes
terday afternoon and the market exhibited
generally an advancing tendency. Speou-
lative enthusiasm for the rise was, however,
visibly ohastened, and after a little time
prices fell back to their opening level.
Then, upon the definite statement that
f452 900 had been withdrawn from the
Bank Of England for export to this side,
the market again turned strong, but only
to remain dull at the advance. Positive
news regarding the gold enga gements
was not afforded until later in the day.
1t became known in the first instance that a
local trust company had secured in London
81 goo 900 in gold eagles and 500 600 in
bullion, and in the last hour Of business
that a large national banking institution
had bought, mostly in London, but to q
small extent in Paris, ST, 900, 900 In eagles.
The market after this no longer heeitated,
but rose violently. The upward move-
ment was continued until the end Of the
day and resulted in gains running from
1 to az points in the stocks principally
traded IN. Indeed, the entire decline
In the market in the first two days OF this
week was recovered. Call and time money
rates responded quickly. Of course, to
the days news. Call money was lent
at the outset at II per cent. and then at
10 per cent, which was the highest rate Of
the day. From then on the rate gradually
declined until 1t was offered in abundance
at 3 and 4 per cent. half an hour before
the close Of business. The final call rate
was ? per cent. In time money there was
a disappearance of the premiums above
the legal rate asked in the shape of COM
mission charges. The figures relating to
the dealings Of the banks with the Sub
Treasury were also to-day Of more cheer
ing character. The banks gained yester-
day from the Sub-Treasury $500 0 and
the Government was to-day a debtor at
the Clearing House in the sum o. 81 ,4ts,635,
JnlS D6lDR ldI Rtly Ou dCCOuul vi DtlSIOt
payments. Presumably. therefore, to-
morrow's balance will show that the net
loss Of the banks to the Sub-Treasury
thus far this week has been small, and
inasmuch as the disbursements of pension
money by the Government will continue
for some time yet, it is reasonable to ex-
pect that in the near future absorption of
money by the Treasury will not be a notable
feature of business in tn financial district.
The price Of sterling iuctuated here to-
day in a way that it has not done before
for years. Before the first hour Of the
Stock Exchange session was concluded
demand sterling had fallen SIS points, or
over half a cent below its drop Of three
quarters Of a cent in the pound yesterday,
Its price at this time was $4,s295, which
represented the lowest level touched by
sterling since December, 1903, when the
Bank Of England was forced to give up a
large quantity Of gold for our use, But as
Soon as to-day's gold engagements were
completed the price of exchange rallied a
full cent in the pound, closing at $4.s395,
a point which seems prohibitive Of further
gold imports, at least those undertaken
through direct application to the Bank Of
England. In view Of this extreme resili-
enoe shown by exchange it was considered
doubtful to-day in conservative banking
circles whether it could safely be said hat
whatever strain there was in the current
money market had wholly passed. To-
days operations must naturally affect I'M
favorably the weekly statement Of the Bank
Of England to be published tomorrow; and
it can hardly be considered likely that
hen last week the directors OF the Bank
reduced the minimum rate Of discount at
their institution to ga per cent. they ex-
pected any such immediate drain upon
their resources as they have been forced to
meet. AS, therefore, the course Of ex-
change in Paris and other European finan-
cial centres is running heavily against Lon
don, it is not absolutely removed from the
realm Of possibility that the Bank OF Eng
lands discount rate NAV be soon restored
to its former level. There was no influ-
enoe exerted upon the stock market to-
day from any other quarter than that Of
the money situation. Various routine state
ments Of railway gross and net earnings
bore witness that there was no diminution
of profits in his direction, and all sur
face indications tended to increase the
hope that a compromise would be arranged
between the anthracite operators and the
miners unions. The weekly trade reports Of
iron and steel conditions we're unusually en-
couraging, all pointing to record breaking
statistics in the production OF iron and to
the fact that the amount Of metal thus pro-
duoed ia no more than sufficient for the
demands Of the consumption.
- Dr.