Los Angeles herald., 1907-11-19
PRICES JUMP
ON STREET
ALL OF ISSUE NOT NEEDED is
BELIEF
Premium on Currency Reiaxes and
Rate Of Foreign Exchange-No
Differences of Opinion on
Panama Bonds
Rv As.noiated Pres..

| by ASSOclateu fTeS1
NEW YORK Nov. 1s.--The lrst effect on
| the market OF the government relief plan was
galyanic, sending prices jumping from l 10
points over Saturdays closing level through
out the list. These prices proved 70 De me
| highest of the day, and the first rush to buy
| gave place to languid and indifferent man
ner which allowed prices TO slip back 4,
The actual effect of the proposed ofer ot
| s1oO 900 900 OF the governments notes bearing
| 8 per cent Interest partly Offset by the
| hoInewhat formidable evidence of the extent
| to which general, business activity had al
ready been curtailod by the dislocation OF ex-
| changes and the currency famine.
Financial authorities In the New YORK nank-
| ing district were by no means agreed as to
| the probable demand for the government notes
| upon which the success of that portion OIL tne
| plan of relief would nianifestly hinge, but
| tho fact that these notes would not circulate
as currency was regarded on the whole win
| satisfaction. as there Is undoubted growth OF
sojcitude over what may be secondary enects
| OF the large injection that is being made into
| the bank note currency under the emergency
for which but cumbersome methods for the
| retirement vet exist. -
| The likely consequence is urged that by the
| breaking of the deadlock due TO boarding and
X! the refux of supplies into the currency con-
dition of redundancy Will be developed 'wnicn
| Il Is feared may force an excessive outso OK
| gold. The question was, canyassed also now
| far the offer as an attractive investment, as
| IL was intended to be. might prove rival 10
she reviving investment demand Tor securities
now offered on the market -
on the other HAND 1t was considered @ @ unlikely
that anything like the full 100000, 900 author
tzed would be found necessary to supply the
dc nland although the moral effect In avail
able supply In breaking the eAcurrency Famine
may prove decisive factor In that respect
There was no division of sentiment as 70 the
availability of Panama canal bond issue ior
Increasing the basis for note circulation whiie
providing against the withdrawal of the
amounts subscribed from the banks.
The premium on currency relaxed decidediy
today and would have done so TO greater
extent had It not been for the, execution OF
orders holding over, from last week. The ex-
trayaeant rates which have been paid for for
eien exchange also gave way in a violent de-
cline in that market, foreign markets plainly
rejecting the assumption that the success OF
the government relief plan would lead to II
cessation of pressure upon those centers for
more gold. The Rgagements OF addltional
amounts of gold inNLondon To-Day ulu not al
feet this view.
on the domestic side there were reports
from railroad traffic officials OF a decisive
l>effect on the movement of merchandise from
the money crisis. Much attention also was
given to reports from wholesale merchants in
New York and from New England mill CEN
ters of the general prevalence of attempts
to cancel contracts which are being vigor-
ously opposed by offers of extension OF ac-
ccnimodatlon for the fulhllment OF contracts.
This is in agreement with the policy deter
mined on in the iron and steel trade under
similar circumstances.
The Interior effect OF these developments on
general business and railroad earnings
gave occasion for some serious consideration
| These were- tho principal causes OF the tncer-
tain tone of tho later stock market, which
persisted for the rest of the day.
| Bonds were irregular. Total sales, par
value So 29S, ,000 government rs and IS de-
clined 1 per cent on call