The Washington herald., 1907-08-20
WALL STREET NOTES
London RumOrS of Failures
Have Bad Effect.
BEARS HAVE BEST OF DAY
Further Advance in Discount Rate
of Bank of England Is Expected.
Foreign Exchange Market Hard.
Call Money Rates Stiffen Up Notice
abIy-BrOkeEs Against Expectation.

New York. Aug. 19.-Disduieting rumors
come from London, constituted about the
only unfavorable developments of the
day.
That credence was given them was
shown by the sharp advance in demand
sterling rates, and, indirectly, by the
weak closing of the stock market.
The reports became more pronounced
as the day progressed In the morning
small failure was announced from Lon
dom In the afternoon rumors had it that
the failure would be followed by others
of more important character The
money situation was reported stringent
in the morning; in the afternoon II was
acute Bears undoubtedly made as good
use of the rumors as they could, for at
times during the day the market was get
ting away from them under short cover
ing and small, lot investment buying. and
the wide circulation given the reports un-
doubtedly induced much speculative
liquidation.
From a bear standpoint, It was also
beneficial in checking a buying movement
that attained considerable momentum in
the early trading.
e Cable advices indicated a likelihood Of
a further advance in the Bank of Eng
! land discount rate on Thursday. though
the advance from 10 ~ per cent was
made only last week That there should
be a chance. one week later, of a further
/ increase TO > per cent was everywhere
! considered an unpleasant commentary
| COncuTrently with these advices, the
( foreign exchange market opened hard.
/ with demand sterling at 4S745 and 1850.
/ and went up until at the close ii was at
| 4S765 and 4S77O. The rate indicated an
4 extreme probability of gold exports in
/ case the Bank Of England offered accom-
/ mOdations. and one internationl banking
/ house was negotiating for the export OF
| Sl.G0000. II was announced after the
/ close that the bank was not Offering
any allowance for interest in transit
| but that nevertheless the house referred
/ Tonight send forward $4,000 as a special
/ transaction.
London bankers let it be known that
/ they wanted gold badly. Bankers here let
/ them know that New York would part
with none willingly. Gold exports. it
\ was agreed, ought 10 be resisted here
with a nominal time-money market and
such high bids as 652 per cent for sixty
days and 6ik and upward for the longer
maturities. 4 large number of brokers
/ advised their customers that while thcy
/ could DO nothing better with their money
! than purchase standard stocks, in case
/ they had the money 10 take them away.
I caution was. nevertheless. advisable in
/ buying on margin and on borrowed mon
/ ey. Even with Union Pacific selling on
/ an per cent investment basis, Ii was
pointed out there was little 10 be gained
in purchases on borrowed money. with
time money so closely held at chance
/ Of sharp advances N cali rates most
/ any day.
! Trading was on much smaller scale
! than IN any fve-hour session since the
imposition Of the great fine. Traders and
| others who otherwise would have bought
were deterreS in some cases by conflict
/ ing reports of utterances Forthcoming
| from high administration circles.
The decrease in activity was accompa-
MED by a decrease Of evidences of forced
liquidation which were so numerous last
week. One however. may have been
! supplied by a sharp break in distiIleries
/ securities which in transactions of 9l50
| shares, unusually heavy for this stock.
! sold off from Az to -, and closed with a
net loss Of S24 points.
! The outcome Of the conference regard
! ing the immunity Of the Alton was await
/ ed with as great interest as was any
other Of the expected developments in
administration circles.
! Apart from the question Of immunity.
/ it was believed that the decision reached
| by the officials would shed light on the
/ question as TO whether or not share
/ holders Of railroad corporations are 10
1 be mulCed in huge sums for rebatng
perpetrated by officers Of the railroads in
I the past,