The Washington herald., 1906-10-11
STOCK PRICES ARE UP
Sharp Rise in Union Pacific
Is Followed by Others.
TINE MONEY At A LOW RATE
Pennsylvania Expected to BE Placed
on = Per Cent Basis sOon-Bsnk
of England May Raise Its Discount
Bate-POlItics Exerts But Little IN
auence on the Market.

New York, Oct. 1o.-One of the broadest
and strongest upward movements IN Sc
curities that had been seen IN several
weeks was witnessed in the security mar
ket to-day. There were no important an
nouncements, and the buying Of stock ap-
peared TO be based upon considerations of
a purely general nature relating to the
value of stocks and to the financial situa-
tion - whole. It lies beyond question
t1sf this situation has in the last few
days greatly improved.
From a technical stock market point Of
view political influences are no doubt sec
ondary at the moment to those of a strict
ly financial nature. and here the note
worthy development is an increasing ease
in rates for the use Of money that, it
must be said, makes the scare Of n month
or more regarding a money stringency
prolonged throughout the rest OF the year
seem more or less absurd.
During the present week call money
rates have declined at the rate almost of
One-half of per cent per day. and for the
most Of the money lent on call on stock
exchange collateral to-day only Ga per
cent was paid.
Loans at Less Than @ Per Cent.
Time money to-day for the first time in
a long period was lent below per cent
It was freely offered at that figure for
practically all periods and on practically
all sorts Of collateral; while loans were
actually made at "a and 51-2 per cent.
The last-named rate was. Of course, only
raFrr H~. 3 a
in the highest credit Offering the very
best collateral
Confidence IS felt, however, among the
Wall street commission houses that d rate
as low as the foregoing Will become gen
eral within a period not remote The
beneficial results Of this are beginning TO
be displayed. The bond market which
has so long been lifeless. is becoming
more active, and the most cusory inspec-
tion OF the dealings in bonds shows that
they are being animated by an advancing
tendency.
II has time and again during the last
six months been pointed out by the lead
ing Wall street commission houses to
their customers that the large cOnccs-
sions at which many OF these issues were
offered were such as 10 present exceD-
tional bargains. Nevertheless, SO threat
ening has the general money situation
appeared that the bond market has re-
mained for a long time back dull and
nfeleSS- With the lowering Of rates for
tho use Of money this tOrpOr has disap-
peared-
Union Pacific Leader In Rise.
n sharp rise in Union Pacific stock
WIS the feature of stock exchange bust
ness in the early part of the day. and
for time it provoked the criticism Of
spectators hostile to the market, that
it did not exert buying of any other CT
the standard stocks. But one after an
other the prominent railway and indus
trial issues Joined in the advance. The
United States steel common shares rose
rapidly on enormous transactions, and
the Pennsylvania, st. Paul AtchisOn.
Amalgamated Copper. Southern Pacific,
and stocks Of d similar class were each
I'm turn. and finally all together exceed
ingly strong
It appeared to be the case regarding
Union Pacific. as It was yesterday, that
the expectation in the financial COM
munity was that the annual report of
the company soon to be published Will
disclose so large earnings, and might
also st the same time make such revcla-
tons regarding the property holdings OF
than justify the current price of Union
Pacific stock. While this annual report
wGs not published to-day. there did ap-
pear the Union Pacihc's earnings state
1nenk Ger August, showing an increase in
theA met revenues Of the system OF
56o, and for the first two months Of
z fiscal year of $75l, ,000.
81 Il is an open secret. and strong pro5a-
'hility at least. that Pennsylvania stock
viii be placed upon a Z per cent divi-
dend-paying basis next month, while the
impression deepens that either an en-
larged dividend distribution upon the
United States Steel common stock will
not be long delayed, or that such an
exhibit of the finance condition Of the
United States Steel Corporation will be
forthcoming as viii show the great equi-
ties now lying in the corporations COM
mon stock.
London Rates to Advance.
Sterling exchange, which to-day ad-
vanced further in the early morning
hours, declined for the ample reason that
London turned q buyer on stocks in this
market The large gain by the local banks
from the subtreasUry thus far during the
week of S7.2l5.000 testifies to one cause
Of the recent decline in money rates
Many large houses here with London con-
nections were of the opinion to-day that
the Bank OF England's discount rate
may be advanced tomorrow to ( 1-2 per
cent. OF even 3 per cent
The German bank rate was elevated
to-day from per cent to per cent, |
but the opinion of the best judges was
that even If as great an advance as II
per cent occurred tomorrow in the Eng
lish bank rate, its adverse effect had
been wholly discounted both IN the Lon /
don market and IN our own.
Several very favorable routine state /
ments of railway earnings in addition TO |
the Union Paclfc's were submitted dur /
ing the day, the most noteworthy being /
the northern Pacific's report of an in /
crease in surplus over all changes Of the I
last fiscal year of $5,551,500.
The governments report OF crop condi- /
tions on the fFst of the month, made /
public this afternoon, though little 1
changed in character from that of the /
preceding month. enlarged slightly the /
great estimates of the crops then given.