The Birmingham age-herald., 1906-11-02
MORE EXPANSION
 IN STOCK MARKET Little Gain is Shown in Anil
 nation IRON PRICES ARE RAISED Speculative Interest centered In Penn syIvania and the Whole Market Was Benefited By Raising
 of Dividend Rate.
IRON PRICES ARE RAISED

New York November 1.-There was a further expansion of business in the stock market today, and some gain in anlma- tion and, moreover, the increase of ac- tivity was accompanied by rising prices. The speculative interest centered largely in Pennsylvania and the whole market was benefited by the raising of the divi dend rate on that stock to per cent by the declaration of a semi-annual divi- dend of 3I6 per cent, compared with 3 per cent for the preceding six months period. The action of the stock on the news was confirmatory of the reports heard for some time that the question of the increase was really an open one, up to the time of the meeting of the board to decide it. The uncertainty over the action to be taken was attributed to the doubt over the policy of q larger dividend disbursement in spite of the large surplus being earned over the current rate of distribution, owing to the large capital requirements of the company, and the heavy increases in fixed charges that are being added to the company's ac- counts by the issues of new stock
 From the stock market point of view also, there was doubt amongst oper- ators as to the probable response of the stock in case the dividend was increased. Recent experience in the case of Atchi- son, Amalgamated Copper and more re gently Baltimore & Ohio. have served to impress upon speculative sentiment the likelihood of holdings being pressed for sale With damage to prices in the event of a development favorable to the stock. The action taken yesterday, after the close of the stock exchange session, in leaving unchanged the 1 per cent an- nual dividend on Chesapeake and Ohio, and the sharp drop in that stock to- day resulting, added to the uncertainty over the Pennsylvania action today, and increased the opportunity for specula- tive ventures.
 The heavy demand for the stock and the manner in which it was sustained after the dividend action was taken, proved encouraging to speculative senti- ment on the whole list, as proving that the rule of settling on favorable news was not of universal application. The holi- day In London may have served to free the market from some pressure from that source Discounts hardened in London. and the Bank of England reported a further slight decline in proportion of reserve to liability. The weeks gain in bullion was trivial in spite of large ac- uurements of South African gold arrivals. Call money rates here are still above the formal, but tLere was no aggravation of Yesterdays striagency and gradual re- fixation is expected with the passing
 h the November l period and the dis Basement of dividends and interest. The srfe. money market, however, shows sus- erined strength, and loans for sixty and reslety days command premium over the snA)er cent rate.
 The sub-treasury and the interior con- tinue to draw on New York. and the tweek's banking operations are expected 10 result in a weaker bank position to be shown by the Saturday bank state- ment. Mexican Central securities reacted sharply from a recent advance on the report of a rupture of negotiations for purchase of the property by the Mexi- can government.
 ! Yesterdays sho-' jellers were amongst 4h- .ainuential buyers today, so far as fhe effect on prices went. The days ad- vances, however, proved somewhat more than sufficient to relieve yesterdays de- clnes, and the market closed strong and quite active.
 Bonds closed steady; total sales, par value, $2,6S4000.
 United States 2s advanced F per cent on call.