Los Angeles herald., 1907-11-08
BIG FINE
HAS EFFECT
STREET
CONDITIONS NOT RIPE FOR DEF
INITE INFLUENCES
Immediate Results of Tennessee Coal
Transaction Dlsconcerting-Big
nstalments of Gold Con-
tlnue to Arrive
BY Associated Press.

BY Associated Press.
NEW YORK Nov. 7-Several important
events today served an admoniton that con-
ditions not ye. ripe to move dehnte lnnu-
ences of the financial disturbances from which
the country has suffered. The action Oh the
stock market indicated some disposition 70
contest these events but the heavy tone pre-
vailed ultimately
The rise in the official discount of thte Bank
of England 10 per cent while clearly foreseeh
yesterday, to- imposing an. evidence OF tne
strain extending through the world
money market not to make formioape I'M
preston.
The rise in the official discount of the Bank
of Germany would be forced to further raise
its rate, but the increase in the Bank OF France
to per cent had been much considered
and emphasized the influence OF the Enslish
banks action.
The per cent rate of the Bank of England
has no parallel since the crisis OF 1873, althouen
the rate of that year went as high as per
cent. In the case of the per cent of the Bank
os France, it seemed not to have been toucneu
since the Franco Prussian war periods.
The decline of SIS, 100000 in the bullion hold-
ings of the Bank cf England during the weeh
and in the bank Of France OF $6.22o,U00 SHOWS
the reason for the solicitude which has prompt
ed the discount rate; although the BANK oil
frances position is reinforced by heavy
loan regulation and large contraction OF out
standing note issues.
Additional gold was engaged from New York
today in spite of these measures which may, In
fact, to attract gold to London ana Paris
from other sources, but some inHueuces seeiii
to obstruct the Withdrawals for New YORK.
Fortign money markets have held so sus-
picious an attitude toward New York requests
for credits all flough the present in that ad-
vances were inconsequental; even such as are
made in authorization of the marketing abroad
of our commodities In force and payments TALL
ing due. the foreign banking corporations nave
no effect the form of maturing loans for
American borrowers. Our choice of payments
in gold for our exports therefore leaves foreign
alternative
Another. instalment of 81, s00, 900 of gold ar
rived in New York today, with a $1.OOOOO0 IN
stallment close AZ hand and others to arrive
before the week end. The effect of this was
most marked in the fall of the premiums which
are being paid fol currency by some users.
The extent to which the money market was
affected was a discouragement TO those who
had looked for prompt relaxation win the iirsl
arrival of gold. The explanation Is found IN
necessary repair of the deficit below the legal
reserve of the banks, and also of the urgent
requirement OF the interior for currency to
complete the movement of the crops, process
of vital importance In righting the situation
and in setting free means for taciiitatlng tne
liquidation. .
The immediate results of the completion of
the Tennessee Coal transaction in the stock
market prove rather disconcerting. With the
admission to the stock exchange list OF the
$50 600 900 of United States Steel sinking fund
bonds presumably employed in that transaction.
there was evident liquidation and decline OF
s points in the bonds.
Tennessee Coal also fell precipitately from
the artificial level at which II has been arpi-
trarily held.
The fine levied on the Santa Fe for rebating
and the reports from various sources of such
selling down of iElustial operations bore heav-
lily on the market and forced 1t to weak
close
Bonds were irregular. Total sales, par value,
s2 2S4, 900 United States rs and IS registered
advanced Il and the As 1is per cent on call.