The Washington herald., 1906-10-20
WALL STREET NOTES.

[
Of the directors Of the Bank Of England
to-day in raising the banks discount
rate from TO 8 per cent naturally I'M
lsettled every important security and
lcommodity market in the world Startling
/ as this procedure was. it yet cannot be
said that it was i'm no degree foreshad-
owed
A week ago last Thursday the English
bank raised its discount rate from 4
to.5 per cent, and IN the time intervening
thorough demonstration was made Of the
/ fact that a s per cent discount rate was
not effective I'm turning the leading finan-
cial exchanges in favor of London.
! Sterling in this market for Instance,
has steadily declined for week past,
and stood yesterday at point where
gold exports from England to this side
were again threatened. II was said in
/ high financial circles here to-day that
there was no intention on TIE part OF our
( bankers To make further Withdrawals OF
gold from England in the near future and
that tie Bank Of England was. indeed.
notified of this determination II was
obvious however. that drastic steps by
the bank were necessary. il its gold re-
serve vas to Re kept from falling below
an aTrCUnt generally recognized as safe.
Information. it seems came suddenly 10
the directors of the bank after they had
left their regular weekly meeting yes
terday, at which time the per cent dis
/ count rate WAS left unchanged. that
/ heavy Withdrawals o. money from the
bank fol shipment TO Egypt were about 10
lac
1T The bank to-day did reach the large
SUM of L2D}0n pounds, or $G.Uo0,0q0
Aside from an this. the bank mad 20
! face in the remaining portion IF lie
/ = ear Withdrawals for home purposes inef-
/ Gent % the season amounting to CO., $50
( or 3.eC0D0 pounds while Canadian ;nsti-
. iuupna are ais0 addressing demands l0r
funds 60 The English market
Tie rise be The banks discount gate
to-day was startling in tits respect. that
IL was. recalled that acton of the kind
nj a time other ,hal the rcsglar weekly
I meeting of the directors was very rare
in Tie history Of the bank and then. only
in The ease ~ real or threatened eacr-
geEcy of "a credit mature. as distinguished
from !aer- pressure of nJacy for Orai-
I nary commercial purposes.
I u speedily became kHown hcro to-day
. in the shape not only uf private cathi
Erauis received Dy bankers here from iIe
-''','- -'-,S i.i t-l'ri''"o' Vet iH
'c-,i .'''''' iI''" 'i' '''iiN
.'a. ''.." e. '"s' ''e ICY ~ "'f
49," '..' ''''s w" ''V'c' '''l'i'u @"
'-cS '.''t. OF tHe era reasons mtHefio
ie'e'I'u 80 ll '"i7 --it...e AKA lhat tltfc
va H3 "'.i--ii's s 'l' NttIc iH thc man
r'ei >'.u@'i.h iH io'"'1' yr anything
otherwise behind the decision in cues-
ton
tohzos ard securities OF AT kinds feli
and money rates rose Violently ia the
London market when the news of the
rise In ths ta3f- fafa aao,r,s l,po,fr ,,d
.,i 49, +.-.i,. ,,-..-l-... 49,. .,....-.
49,
'i' AZ 'i''-
oi events .tFe was. d might Dc confessed,
position 81 cur market. The bruEt ~
whatever ldIiGat'on there was was fai-
'-gn1 1t 'At opening 81 Inc stock eX-
eh'h6e' ava caused declines tJrs.n5 From
one 10 Tour points ia Tie principal stocks.
save in few instances. however. the
pilces thus made were the lowest OF the
.l''. ana i.5-=A '-t 'o.-li' oi lIadl1S
-H ''i' i-'i 20 N'A r1''ie WAT it was
~" ''i'' .''-e 'ts Ai'tl seliiiis %.
~ NJ l.l "''H '''o -.tS' tHe 5shtt q
'l'ii Yi 'i'e "'@I."' o5ilhs iile cay VS.
,o"5i" "i "'dii1e iIon us opening
SO ~ '.l --i-',. lLeie was no aola-
set mic ,...is s,.- mi go. -. =.
dav beir- : rer cc-f wiiI me more fr,.,n
ncr cent WIS Iid f,r fin,a r,noe- for
any n7aturftv. ana moro s,,~D---ine. eti
sauauaI impulse toward "a higher place