The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-23
WALL STREET NOTES.

New York. Oct, 22--OppoItuhltiSS W DuS
stocks on a reaction resulting from 4
occurrences which rightly considered /
should generate confidence and not mis- |
trust. do not offer themselves so often in |
the stock market that the large inter-
ests can afford to disregard them, and
they certainly have not done so in the |
present instance. No more incorrect in
| depreciation Of the significance of any inn |
portant matter OF market interest can
| be recalled than that given 10 the recent
/ action of the Bank of England, which
/ showed more forcibly than 1t was ever
/ shawn before. that this country. prosper
| Gus in the highest degree, and with the
gold basis thoroughly established, has
turned the tables on the countries of Eu-
rome. forcing them to extreme measures
for the protection Of the supply of the
yellow metal
/ The assistance granted by the Treasury
some weeks ago 70 facilitate gold I'm
ports. placing American bankers on the
same footing as those Of London and
Paris in the exchange market, has prov
ed too much for Europe, and unless the
handicap of loss Of interest on consign-
meu;s in transit should again be imposed,
the yellow metal will, in a little, come
here without stint il needed.
/ II is something entirely new in Ameri-
can finance to find conservative interests
expressing satisfaction with an advance
in the rate Of exchange. on the ground
that it was a relief 20 find ;he danger Of
a serious disturbance in London averted.
The power 20 create the disturbance being
iconceded. is tardy recognition of American
financial strengthened those who now
recognize the significance Of the situa-
ton can hardly fail 20 be optimistic
Having the power and refrsining from
using il, indicates that the coming imam
cial center Of the world can temper great
ness with a very admirable quality.
Certain large houses whose sources or
information are such as 20 entitle their
o. Mons on the subject to a deal Of re-
spect say that Wall street has attached
entirely too much Importance to the Eng
lish position i'm this market and not
enough TO that Of the French investors.
It is contended that within the past few
months France has bought very large
amount of American securities. but that
Instead Of their being taken away, as
would have occurred had the purchase
2 ]
: carried here with view TO evading the
tax levied by the French government on
foreign stocks. The result, according 20
b these houses, has been 10 burden the New
York money market with the cost OF
carrying stocks owned direct 10y foreign
3 investors to al extent which goes far TO
: couutcrbalance the carrying Of stocks in
I London for the account of American spec
uators The lenaciJy OF the French In
weston is wei known. and the recent
shake-out has not affected his position.
land il IS said that the carrying OF stocks
? with American funds explains. IN "a meas
8 urc. why Paris is now in position 10 aid
. the London money market.
! IT is estimated that sales Of American
: stocks by London on Friday and Satur-
3 dag aggregated 2o1.0C0 SHARES. but opinion
is divided as 20 what proportion Of this
consisted of short selling. Some brokers
say short sales accounted for about one
half OF the total. although the best in
formed opinion seems to Doe that this est-
mate is entirely too high The arbitrdge
!. houses contend that the selling has not
. vet been completed bv any means To-
= morrow there Will Doe further forced sell
IS iHg. with the result that heavy shipments
4 of stocks 10 this side viii Doe made sat
8. urdav 10 is pointed as significant of ia.
3 discrimination against Americans that the
2 stocks of England corporations did not
suffer lo any appreoiabie extent. but the
fact hardly touches the main considera-
riOu at I'll. which is that the very unusual
4 measures taken by the Bank OF England
Tn attract gold has found New York not
p, only able 10 protect its supply. but %
g take All stock sold by foreign or other
r.. spectators
= Bankers described the money situation
: as comfortable so far is it related 90
I. New York. and the feeling among them
T, was that no necessity existed for any
/ relief from the Treasury at this time
3, They unprecedented no striuEency, and be-
Hcved that Secretary Shaw would moi
exhaust his power OF aid-giving AT a time
when the almost inevitable rise would b,
s. 20 force up exchange % point where
gold exports would eveutuate
The locking up OF funds Iu the Treasury
e, has frequently inflicted hardship on New
York. and at such times the duty of III,
Secretary of the Treasury Is clear. buf
when ID comes TO aTord1ng relief for the
* sake Of London. there is a serious ques
tom aS to whether there is anything
which should De- done. There is, o
., course. such % close relationship betWeeI
8. the great nations that a disturbance 10
The money situation in one usually cause.
e an effect i'm the others but the only nota-
ble effect felt here 50 far Is a stiffenin.
q OF rates which a week ago or so droppe,
3. below the level warranted by the rea
conditions then prevailing
p Influential houses received confirmation
= practically official. OF the report that in,
4, Bank OF France would supply gold to tn,
5s Bank of England If the necessity fo
= such q measure of relief should arise. an,
=. the opinion was pretty general that al
is vantage would be taken OF the offer
There IS no doubt whatever that If Lon
rs don drew enough gold from Paris t.
cause decline i'm its money rate export
s. To New York would soon De resumed
rs Just at present there is an equilibrium
rs which might be disturbed by preCipitat
- action on the Part OF Secretary Shaw o
. by "a movement Of sold from the cont
- nent TO London. The city which first get
relief is likely 10 lose gold 10 the other
Union and Southern Pacific Were promi
nent on Jhe advance, the buying in IN
former being especially noticeable, an
both closed with a fun recovery of Sat
?. urdays losses. II was said I'm eXplana
be- ton OF the break on Saturday that SUI
zoe porting orders had been placed in IN
r. hands of brokers before the opening, an
H- that these were ali executed in the frs
r.. hour. leaving the stocks in the secon
I'd hour without protection OF any kind.
ire \ speculative operato after being con
.or spicuously active in Reading was reporte
r,+ to have said that the pool in the stoc