Omaha daily bee., 1906-10-20
new YORK STOCKS ANDBONDS
Advance in Hank Of England Rats Of
Discount Causs' Sensation.
RUSH TO SELL CAUSES A SLUMP
Year that Action was Due to
some UndiseIosed Development
Creates Panie Among
Spectators.

=, NEW, YORK, oct. 1s.--The Bank Of
England sent sensation pulsating
through the financial markets OF the
Whole world by its unexpected action to-
day by advancing its official minimum
discount rate from to per cent, fol-
lowine an ADVANCE OF from I to 8 per
markets was distributed and the effect
IN New York seems TO have been moro
rush to sell at the opening of the mar
ket here was emphasized by vague fears
that some undisclosed development may
adopted by the great central institution
OF English finance. Some financial diff
heulty IN the banking world or a ncY
was most feared. Prompt inquiry es-
tablished that nothing more was involved
than the necessity that was forced upon
the English bank TO stop the drain upon
its reserve fund
~, The immediate factor in precipitsting
the action was the threatened withdrawal
OF 100000 from the bank of shipment
to Egypt. This in itself would make an
lnroSd I upon the depleted reserve supply
measure, q to check softe' X The PSdFsRTSS PdCWm%STS
plunge in sterling exchange in this mar
ket also opened the way for renewed ne
London for New York account. The ef-
rect was an immediate rebound in eX-
change here, There was some later re-
up OF the money rate in New York Sales
Tor time loans were strongly bid at per
cent for all dates and efforts we're
reached to negotiate some very large
loans on time Lenders were little in
clined to place funds except for the longer
period. Call loans advanced to ! per cent
comparatively early In the day. ne
forecasts of the weeks currency
ment did not tend to ease the tone
express seems TO have amounted to nearly
$5,000,000 The shipments TO Canada and
a remittance to Manila have called for
almost as much more, but these were
about Offset by the gain on subtreasury
operations and the receipt of foreign gold.
The net loss to the banks, however, is es-
timated at from $4,000, 900 to $1,000, 600.
The present course pursued by the
Bank Of England has it's latest parallel
Boer war in 1889 After raising the Of
fetal rate to per cent in November, the
rate went to per cent on the last day
of November. Ths action was not inn
mediately effective in the open money
market on London nor on the exchange
| rate In New York. But In the course of
| New York and Withdrawals continued in
| spite Of the acute strinGency in the call
money market, which finally ran the rate
! in the third week OF December, Drastic
/ liquidation in the stock market was
forced before the stringeney was broker ss
| cred in the market today. although the
| levying Of fines on the New York Central
! Of the standard oil company in the suit
| for conspiracy in an Ohio court were
! cited as incidents likely TO depress the
| markets. These and all other considera
| tions wers swallowed up in the dominant
| effect of the response in the money mar
| kets to the Bank of England action. The
| stock market was quiet and free from
urgent pressure during the latter par
! OF the day. Recoveries from the low
! point were inconsiderable and the closint
| tone was heavy. United States bono:
were unchanged on call
| Bonds were weak. Total sales, pal
! value, s2.244, 900.
| The following was the range Of prices OF
the New York Stock eychange