Evening star., 1907-08-28
A Northumberland Advance
Marked the Day.
GAINS IN ACTIVE ISSUES
Buying Quality of Market Was Con-
spicuous Feature.
LARGE INCREASE IN BUSINESS
Washington's Relief Of the Monetary
Situation Beneficial
Factor.
LARGE INCREASE IN BUSINESS
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, August 2S.-An extensive
and. in view of It's proportions an excel
lently wel-maintained advance took pace
In today stock market. In the active is
sues gains of one and two points and over
were quite common and 1t was worthy of
note that. as distinguished from such raj
lies as have been witnessed previously, the
more inactive issues advanced a so. This
was reasonably taken to indicate the full
mination for the time being. at any rate.
of the liquidation which has been in pro-
gress practically throughout the month.
Close and experienced observers of stock
market affairs were in more or less ac-
cord in their conclusions to the rea-
sons for the market tendencies which
were in evidence. The buying quality of
the market was represented both by ex-
tensive covering of short contracts and by
the renewal of the investment purchases
both of odd lots and round amounts, such
as was conducted even during the periods
of the markets greatest unsettlement
earlier in the month These orders were
naturally supplemented by speculative pur-
Chases also. and these collective technical
circumstances We're sufficient of them
selves to explain the results of the days
dealings.
There was quite a substantial increase
in the volume of business. and a very gem
eral distribution of interest was apparent.
Even those stocks which for individual
reasons, have been more or less under
cloud such as the Erie shares and the local
traction issues, participated in the better
ing tendencies of the market.
Influence From Washington.
Aside from the already mentioned me-
chanical circumstances of the dealings, the
chief reasons advanced in connection with
the course of prices were the measures
undertaken by the Treasury Department
for the relief of the monetary situation
during the autumn. and the forthcoming
sale of securities by the city of New York.
The inter-rela tion between these two mat
ters Is now attaining more general recog-
nition and so also is the Importance of
the two circumstances. 1t is now generally
understood that a single leading banking
house will enter bid for one-half of the
city bond issue. and there Is no doubt at
all that the remaining 80 per cent Will be
readily taken.
1t was reported today that the Secretary
of the Treasury had decided that in the
furtherance of his money market relief
plans the most feasible method would be
the deposit with the New York banks of
about $5.OOo.OOO weekly.
This is a wise conclusion. as burden OF
monetary stress each autumn falls invari-
ably upon this center; consequently pur-
chasers of the new city bonds would have
no difficulty in lending them to the national
banks at the usual commission of per
cent, and later can make use of the bonds
as security for the forthcoming treasury
deposits. Hence the first purchasers of the
bonds, provided they obtain them in the
neighborhood of par. will actually be re-
ceiving in the neighborhood of 6Ia per cent
on their investment. while, the other
hand. the banks will establish a greatly in
creased lending capacity.
Relaxation in Money Market
Further relaxation was noted today in
money market circumstances, while sterling
exchange rallied somewhat from it's sharp
reaction of yesterday. Another engage
ment of s5Oo.cOO gold for shipment to Ger
many designated as "speciar' was an
nounced. and If these shipments continue
much longer it was suggested today that
the designation should b. altered to ''ha-
DItuai."
strong and animated on the further re-
Taxation in discounts. An encouraging fea-
ture OF The dealings there was the active
investment demand for securities but in
the New York Investment market a change
of temporary paralysis has been induced by
the AZ per cent rate Established on the
new city issue.
Operations here for foreign account
showed an excess of purchases In the
neighborhood of about 10000 shares So
far as the dealings In particular stocks were
concerned they were unaccompaned by
much discussion other than that relating to
dividend prospects.
While discussion of this description did
not apply particularly to Union Pacific
that stock was easily the leader of the
market. and together with Amalgamated
Copper, Reading and United States Steei
common. II furnished very large proper
tion of the days total transactions.