New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-08-23

A materially improved sentiment was mani
fest In the stock market yesterday, although
little in the way of news came out 10 account
for it. The principal bulish influence was the
decision Of the Bank Of England to MAINTAIN at
Az per cent It's minimum rate of discount
which many had expected 70 see raised TO per
cent The reaSsuring action OF the banks Ill
rectors was followed by a decline In foreign
exchange rates at Paris and Berlin and at this
centre, where demand sterling closed so points
lower than on Wednesday and by rallies
the Continental bourses and a strong stock
market in London, where consols advanced a
full Il per cent The local market opened
rather uncertainty, and in the first hour declined
slightly, on rurnors of coming failure The
low level Of the day was touched before II
o'clock when announcement made of the
failure of the Stock Exchange firm Of Mills
Brothers & Co. The failure was not considered
an important one, and with the bad news out
the market began a recovery which continued
until well along in the afternoon, when there
slowing down in activity and a partial
recession in prices profit taking and on new
short selling. Final prices hewever, were well
up toward the best Of the session, and the mar
lSet closed with net gains of varying size for
almost the entire list The principal gains
among the market leaders made by the
Hill stocks. Union Pacific. Canadian Pacific
and Reading, which have been under especial
pressure Distiners' Securities. which has been
conspicuously weak OF late advanced pa points,
gain of points, despite the persistent reports
that the guaranteed dividend is about to be
suspended. marlborough Metropolitan common
declined u and the preferred gained u The
total transactions about $4,000 shares,
comparing with Wednesdays business Of 336,65O
shares
Much the greater part of the buying demand
yesterday represented covering of short con-
tracts induced by the improved outlook abroad
and by the cessation Of the liquidation which
for several weeks has been in progress. An en-
couraging fact was the continuance of invest
rnent buying. although not very large
scale. Rates for time money were advanced to
the highest point Of the season. with 612 to Z
per cent asked for loans from two to six months
and actual transactions effected at higher fig
ures than those quoted. The hardening tend
ency, rejecting the expected urgent demand
later on for accommodation by mercantile IN
terests, had effect on the stock market.
where the belief prevailed that when the move
nent of money to the interior for moving the
crops should have become so extensive as seri-
ously to curtaiI the accommodation possible to
be afforded by the banks to their mercantile
customers the Secretary Of the Treasury would
relieve the situation by placing with the de-
positary banks sum large enough to prevent
actual money stringency. 1t is recognized,
though, that for many weeks to come there can
be no possibility Of a material advance IN stock
prices because of the money market conditions.
The decision of the commissioners of the New
York Citv sinking fund to issue corporate stock
bearing AZ per cent interest had depressing
effect on the bond market, as was natural: but
it was generally agreed that under the present
conditions no other course could have been pur-
sued.
A decline Of about IL cents in the price OF
wheat. on better weather reports from the
Northwest and denial Of the stories of great
damage to the growing crop from the recent
severe cold, was one of the factors of strength
on the Stock Exchange. On the curo Arefl-
can Tobacco common. which on the preceding
day had sold as low as l9i. advanced 10 "a.
.-o,ber strong feature was Nipissing, which
made a net gain of about Ia points