The Birmingham age-herald., 1906-10-23
VIOLENT REBOUND TAKEN BY STOCKS ReuIsion of Sentiment Sends Operators ScrambIing THINK RELIEF IS COMING Bank of France May Extend Loan to Bank of England or Secretary
 Shaw May Come to
 the Rescue.
THINK RELIEF IS COMING

New York, October 22,-There was a violent rebound in prices of stocks today which went far to wipe out the heavy declines of Friday and Saturday. The in- terval after the market closed on Sat urday in a state of demoralization, until it opened today, saw some important developments and gave rise to ru1nors of others of still greater importance. The consequence was revulsion in sentl- ment which sent stock operators seramb- ling to buy stocks who had made desper- ate efforts to sell them at any price on Saturday. Owing to the fact that much of the selling on Saturday was in the nature of short contracts, there was some- thing more than sentiment in the eager ness to secure stocks on rapid rise today In fact there was a considerable sub sidence in the force of the demand when the needs of the uncovered short interest had been supplied. As there is no loan market at the stock exchange on Satur- day, loans made on Friday carrying over until Monday, the rush to sel lon Saturday must have been based more on appre- hension of pressure than on any actual
 
 Bank of England's 6 per cent discount rate in the worlds market was much less than was feared. In this market call money, after tending at per cent, fell back promptly to per cent, and later in the day to considerably below that point. This could not have been due to any actual replenishment of supplies over those available on Friday.
 Very confident hopes were engendered however. that relief measures would be forthcoming The nature of this relief was left mostly in the realm of conjecture during the day, although there was cred itable authority for the current belief. The first of such measures to receive at tention was the rumored agreement of the Bank of France to transfer as loap $30.O00,0OO to $40,000 900 to the Bank of England. There Is great confidence that the Bank of France could really afford to do this. and the conservative safe guarding of it's gold holdings by that in- stituton is attributed largely to precau- tions against possible eventuallties in Russia rather than to any defined require- ments to be met
 The presence in New York of the sec retary of the treasury was accepted as assurance that treasury measures of re- lief were to be forthcoming for the New York money market, 1t was the common assumption that the redemption of the per cent bonds of the government which mature next year would be anticipated with an offer which would allow the government some saving into the time of maturity based on the present price of bonds In the market Further deposits or government bonds with the national banks also was regarded as a possible recourse The assurance felt that one or the other alternative would be adopted was measured by the tone of the money market, and by the confidence with which stocks sold last week, were rebought. The time money market held strong however, and no loans were made below per cent, while for sixty and ninety days the asking rate was advanced to 6h per cent. The amounts offered at these rates were reported small. Anxiety over the effect of recall of credits from the market by London seemed to be much alleviated. The understanding that many of the finance bills maturing in the i'm mediate future in London have the privi- lege of renewal for a defined period had