The Washington herald., 1906-10-12
STEEL COMMON AT so
Highest Mark in Five Years
Reached Amid Cheers.
PROFIT TAKING BRINGS LULL
Despite This Movement, Most Lead
ing Stocks Close at an Advance.
Bank of England Raises Discount
Rate, But 10 Adverse Effect Is
Felt by Security Market.


greater part OF the Stock Exchange ses-
sion to-day the security market dis
played the same aggressive strength
that It did yesterday; but IN the last
hour Of business a profit-taking move
ment, wholly natural in view of the rise
IN prices that has been going on inter
ruptedly for some days pass, caused
many Of the earlier gains 70 disappear.
As IL was. most OF the leading stocks
gtiu closed at advances, and the firm
undertone Of the market was in no wise
impaired
Even more generally than was the case
yesterday. the activity of the market to-
day embraced all the prominent issues.
though especially noteworthy strength
was shown by the United States Steel,
Pennsylvania and Northern Pacific
stocks.
The Steel common shares touched 50
for the first time since 1901, and the
event was received with no little en-
thusiasm on the floor of the exchange;
nor can the present price Of the stock
fail to be exceedingly gratifying TO the
large number Of shareholders Of the cor
poration scattered over the country who
have held their stock ever since the
formation OF the company.
In the case OF Pennsylvania # seemed
10 be regarded as practically certain
that the directors would next Monday
place the stock upon the Z per cent divi-
dend basis, while the buying Of North
ern Pacific was undoubtedly founded
upon the very reasonable expectation
that the company's stockholders would
n
JributiOn Of the equities that have been
created by the lease Of the Northern
Pacihe's ore lands to the United States
Steel Corporation.
Local Traction Strong.
The most significant development in the
stock market to-day was, however, the
strength OF the stocks Of the local trac-
ton and gas lighting companies. Gains Of
a point or more were made in the Brook
lyn Rapid Transit, Consolidated Gas, and
Metropolitan issues, and the sole cause
for this appeared TO be a feeling of buoy
ant confidence that the Hearst candidacy
would meet overwhelming defeat.
As the rise in Union Pacific's common
stock has been more vigorously carried
on recently than in any other quarter, SO
The fall in the stock to-day was more
pronounced than elsewhere. Union Pacific
rallied. however. very sharply from the
low point touched by it. and closed ut
only very small net decline.
The one event Of Importance to-day
from a financial point of view was. Of
course. the advance iu the Bank Of Eng
lands discount rate trom 10 per cent.
though, perhaps, a matter more worthy
OF note was the fact that the action of
the. directors Of the bank exercised no ad-
verse effect upon the security market
anywhere. It had, in fact, been wholly
discounted"
The bank made poor report of Co0di-
ton, showing a proportion Of reserve TO
liabilities of o5.45 per cent against $50
per cent last week and H43 per cent at
this timC last year The drain of gold
frow London 20 this country ceased some
Jime age. and it is wholly probable that il
the Bank Of England had Tot been called
upon 10 face Unexpectedly heavy demands
Tor money from Egypt its attitude To-
ward borrowers OF money would have re-
maincd unchanged.
Cotton Advance Is Cause.
These Egyptian financial necessities are
1t seems. directly connected with the re-
cent events making for an advance in the
price of cotton and the brisk speculation
in the commodity which has been stated
IN Egypt no less than in our own coun-
try.
There were many indications to-day
that the Bank of England would have
no very great difficulty in speedily re-
plenishinS its Golfers. The bank will un-
doubtediy secure. without having TO meet
any competition. the 100000 pounds IN
gold that is due to arrive in England
early next week from South Africa, and
to-day sterling in Paris rose to the very
high figure of p francs y centimes. a
figure above that at which the directors
OF the Bank Of France announced a few
weeks ago would result in a release OF
money from the French institution for
the benefit OF the London market.
Time Funds Are Low.
Here to-day the relaxing tendencies in
the market showed no abatement The
bUIk of the call loans made were al
81 per cent, and there We're a few bor-
rowers Of time funds, which paid more
than . 81 per cent for money for their
account. save. Of course when low gold
collateral was offered.
II is a fact that yesterday. a leading
. bank institution lent q large sum for six
months at per cent to Wall street
commission house, the security offered
being. of course, of the best
Sterling exchange here to-day rose al
the outset half cent q point in re-
spOnsc 10 the advance in the Bank of
England's s discount rate, but fell again,
making however. considerable net ad-
vance for the day.
Prices again moved feveTishly back
and forth On the cotton exchange, the
impelIing cause here being the early in
rush Of cold weather over the cotton
belt