The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-21
BRITA|N'S BIG BANK
JARS WALL Street
Rates Go Up and Stocks Go Down
i. Monetary Situation IN
certain. -. -,
Special to The Journal.

0PoVia1 w tAo oouAAoi.
New York, Oct. 2O.-Until the Bank
of England advanced it's rate and threw
Wall street into a nervous fit the stock
market was holding it's own nicely and
the street felt justified in maintaining
the strlngency in money had been deli
nitely broken. 1t mattered little that
banking interests predicted firmness
thruout the remainder of the year or
that merchants were still paying around
the insistent demand of corporations for
money, as further evidenced the past
week by the announcement of an issue
of $2O,0OO,00O General Electric stock
failed to attract more than casual at
tention. The rise in the Bank Of Eng
land rate changed all this.
The advance of United States Steel
common to above so had caused great
deal of comment. Many small investors
with the idea that they were obtaining
certain s per cent for their money,
only later to see the dividends passed,
and the stock drop to 90 per cent of the
purchase price, were just beginning
again to come into their own. Intima-
tions were current that the Morgan in
terests to retrieve their reputation
would not only facilitate higher prices,
but at an early date permit the restora-
ton of the per cent dividend rate as
well.
In much the same way the street was
told that the Standard Oil party, in or
der to stand once more in the good
graces of the investment world who pur
chased their Amalgamated Copper fota-
ton seven years ago as a sure per
cent stock, with the timely aid of %
cent copper, propose to raise the stock
to the market level where it formerly
Cd ho t,,To 40 fha ~
diction, made good and put it upon an
8 per cent basis, e. %, ...
The tendency to increase dividends
had the natural effect of stimulating a
feeling Of hopefulness, this being evil
denced by the rise in Pennsylvania,
which humor persistently asserted is to
get per cent and in American Smelt-
ers, for which 10 per cent is promised.
To keep the Hartman Paciics and ST..
Paul active all that is necessary is an
allusion' to the possibilities of melon
Wanted merger deal Railroad compa-
MES are finding that the rate bill is
working to their advantage while the
same thing may be said regarding the
shippers, and this fact receives i'm
portant consideration in Wall street
centers, where real facturso governing
stock market values are considered.
Everything, in short, was favorable
and the market seemed shaping for
higher prices when the rise in the bank
rate took the edge off the confidence
and let prices down a. peg all around:
It must be admitted that the position
of foreign money market affairs is fal
from favorable, a reflection Of which is
presented in. the advance by the Bank
Of England and the Imperial Bank OF
Germany in their loan quotations: The
higher rates for money abroad follow q
cessation of the American inquiry fol
gold. and conditions in Europe are now
distinctly unfavorable1 to- further en-
gagements Of the precious metal fol-
American account, but fortunately the
situation in this country is moving II
g. manner which no longer makes neces
sary assistance from: foreign ,centers
The needs of the west: practically have
been satisfied, and the only importan'
shipments of currency now being made
from New York are for New Orleans
where the demand for accommodation
in connection with the financing OF tht
cotton crop is heavy and likely to re
main So for a number Of weeks to come
The resignation of the French ministr,
was bad feature.
The advance enjoyed by the Chicag
& North Western is considered to b.
due to accumulation in anticipation
the new subscription. rights. Thes
rights are likely to- be of eonsiderabl
value. The company is building numel
Gus spur lines: and is carrying forwaa1r