The San Francisco call., 1909-11-02
EARLY RISE IN
STOCK PRICES

NEW YORK. Nov. 1.-operations in
stocks today were of an exceedingly de-
sultory character and the interest in, the
market was languid in advance of the holi-
day tomorrow. The observance of All
Saints, holiday in London and Paris today
also subtracted materially from the volume
of the days business and deprived: the
market Of an index of sentiment on the
.:aternationaf money outlook, which is much
relied or al. present. The money markets.
proper sent encouraging news from abroad,
and this was prime factor in the early
rise in prices of stocks here. The weekly
statement of the German bank disclosed
some heavy inroads on resources incident
TO the November settlements, and the pri-
vate discount rate in Berlin rose a frac-
tion.
The Bank: of England secured all of the
$500, 900 South African gold arriving in
the London market with competition and
at further recession in the price, which
wipes out, in effect, the: recent premium
over the obligatory price to be paid by the
bank which has prevailed while other cen.
tiers: we're competing for the London gold
supply. This. was looked upon as crafty
ing evidence Of the satisfactory progress
of recuperation in the Bank Of England's
!, condition.
The effect was helpful to the New York
stock market notwithstanding the absence
of direct operations in New York on behalf
Of London. ~
There was striking diversion of specu-
J. lative effort TO low priced industrial stocks
! and specialties, while the more prominent
trading. stocks were neglected. The minor
members Of the steel group, especially the
| railroad equipment stocks, were conspiou-
Gus. The influx of new orders for equip.
ment from the railroads was partly respon-:,
sible for this movement. =
Something was made of the reports of
large sales of copper metal in the last few
days, but the copper industrials did not
hold well and sagged with the receipt of
copper quotations from London, showing
decline in prices.
The speculation looked somewhat ask
ance at the terms announced for the new
Pennsylvania stock issue, which was at
lower price than had been anticipated. As.
between the increased value of the sub
scription rights to the individual stock
holders and the low credit for the corpora
ton involved in the issue at par Of stock
selling in the market in the neighborhood
of l4s the appraisement of the operation
was somewhat confused. The resort to a
stock issue at all in place of a bond issue
is testimony to the faulty investment de-
nand for fixed interest bearing securities,
which has been remarked in the bond
throughout the latter stages of the active
speculative demand for stocks. The new
per cent dividend rate now existing on
Pennsylvania railroad stock, and left un-
changed by the days declaration, repre-
sents, if maintained, high rate to pay
for new capital. The proceeds are to pro-
vide for the payment of $50. 900, 600 of coll
lateral notes which bore per cent and of
$50 o0O, coo Of per cent bonds falling due
next year. The stock market tone became
somewhat dropping after the news of the
Pennsylvania directors action.
Bonds were irregular. Total sales (par
value) s3,3e3.ooo. United States Is de.
clined 4 per cent on call. r