The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-10-23
STOCK PRICES SOAR
Scramble to Buy at Opening
Surprises Traders.
OUTLOOK DECIDEDLY CLEARED
London Sales Quickly Absorbed and
High Prices NEUTRALITY-SUSPICIOUS.
ShnVv'S Presence in New York En-
couraEes Financiers-FaiIure Has
No Effect on the Market.

New York. Oct. 22.-Matters in the /
financial district wore much more smil-
trg face to-day than they did at the (
close Of last week 1t became clear for
one thing that a large part of the sell /
ing Of stock which took place last Fri /
day and Saturday had been for the ac- /
count of SPECTATORS for the fail, and |
that these operators We're to-day largely /
engaged in buying back the securities /
that they had sold. such transactions /
taking place in many instances at net
losses.
Spectators of the kind described were, |
Of course. very quick 10 see the uneX-
pccted advance last week in the Bank |
Of EnglaEd's discount rate would result /
in a good deal of selling Of stock in this
market for foreign account, which would
probably result temporarily az least In
lower prices for the active shares.
What they did not calculate on was
the great power of absorption of the
stocks thus sold that would be here dis
played Il became known thus to-day,
not only that between 100000 and 3A,W0
shares of stock had been sold here for
last week and this morning, from which
a fair inference was that the great bulk
of liquidation by London had been com
pleled but that these stocks had been
taken in the readest manner by power
1ul financial interests.
Strong Houses Are Buyers.
Stories began 10 circulate before the
frs, hour OF stock exchange business was
concluded to-day of the large buying Of
stocks during the last weeks decline by
The agents Of this or that great bank
ing house, so that very little doubt re-
manned in the minds Of all attentive OBJ
servers Of the market that transfer OF
stocks from strong hands 10 weak mad
been going on pretty rapidly.
Aside from all this the general finan-
cial outlook cleared to-day very decided
~ Sterling exchange in Paris advanced
i'm a way that indicates that whether
or not the Bank of Paris is 10 re
lease gold for the benefit Of the Bank
of England. funds are moving in guam
thy from Paris 10 London through the
medium OF the foreign exchange market
All the continental exchanges turned. 81
fact heavily i'm favor of London. IN
London itself a much more confident
feeling prevailed.
The Bank Of England managed 20 Sc
cure to-day without competition over
$4,000 I'm new gold I'm the London mai
ket. and the general opinion in London
I'm financial circles appeared 10 be tnat
the per cent discount rate of the
bank would bee effective al last I'm strength
ching the banks reserve.
Demand Exchange Declines.
Although a. one time during lie day
demand sterling here stood as high as
~
day. il afterUard fen half cent in
the pound because of another thrush into
the exchange market of great quantity
OF cotton bills.
Money rates her. showed little dis
tugbarceS- Can money lent early I'm jEe
day al : Pc cent and fin The afternoon
was easily obtairabIe al a. Der cent or
under. Most OF the days loans were made
1T IS per cent Rates for the time money.
save for @ days and four months did not
rise above @ per cent For the ,wo pc
RODS named per cent was usually asked
The pgvSeuc, in town of the Secretary
Of the Treasury and she known fact tG8t
inc was i'm conference with prominent
bankers regarding the financial situation.
was distinct encouragement of the more
cheerful feeling that prevailed. II did not
appear 10 be- the belief in high banking
quarters JIat any immediate easing ul
the money situation through deposit oi
public money iu the banks or through :u
offer or tho Treasury 10 buy government
bonds was needed or would be- desirable
Money is certainly not lending 40 she
present moment AT uecessltGuS figures. an.
any reductions in these rates below -ul-
ing quotations might effectively nave .
tendency 20 Uuduly strengthen exchange.
Expect Statement from shaw.
4 statement from the Secretary Of tine
Treasury. that in case money rates diJ
So advance as To- threaten financial
stress. he would quickly use remedial
measures. which would undoubtedly Doe
as effective as anything else in dispeHine
whatever anxiety may exist as 10 the
future OF the money market. and il was
thought to-day that this statement from
the Secretary would be Forthcoming
either publicly or in private assurances
10 leading financial interests
All that can be SAID for the security
market to-day is thar it was continu
ouSlv strong throughout There Was ID,
selling of stocks at the opening Of the
market as d. was feared there might be
on account o. exhaustive margins. or 81
there was any such selling il was en-
tirely overborne by she influence o
further buying that vas evoked "ovel
Sunday by the previous decline
All the large commission houses Wcr
in receipt this morning of a greater
quantity of orders from the public Il
buv stocks at or below Saturdays clos
ing level but, OF course, none of these
orders were executed, except when, late
in the day, they We're cancelled and di
rections to buy stocks 1T the maTHe
price substituted in their place.
Closing prices of stocks were almos
invariably at or but very slightly below
the highest of Tie day and disclosed ne
gains greater as a rule. than SatGr
DAVIS losses.
The failure as announced today Of ;
stock exchange house was of little inn
portance. as being only that Of room
trading Spectator, whose operations II
recent months have been heavily curtail
ed ON the cotton exchange prices agaiT
rose very briskly. upon the news tina
another cold wave was moving into TIN
cotton belt
nncTna