Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-14
MUCH BETTER TODAY
Tone and Prices Improve De-
spite lrreguIarity.
LONDON IS NO INFLUENCE
Advance of Discount Rates Expected
for Months.
LOCAL MONEY Is UNCHANGED
General Gains at Opening-U. s.
Steel and Union Pacific Marked
Leaders for Strength.
LOCAL MONEY Is UNCHANGED
Special Dispatch to The Star.

NEW YORK. October 14.-Although the
Bank of England raised its minimum rate
of discount to per cent today, an ad-
vance of IL per cent in the last fort
night, there were no calamitous conse-
quences in the financial world either
here or abroad. On the contrary. the Sc
curities markets acted very much as
though this important event had been
pretty thoroughly discounted.
Indeed, i'm the case of our own stock
market, the sequel was continuation of
the improvement both in tone and price.
albeit the Improvement was conducted
with some irregularity which began to
be noticed yesterday.
AS a matter of fact, it is question
II the depression and unsettlement which
visited the stock market last week had
their origin in the transition of the money
markets of the world from an abnormally
low level to a level of reasonable return.
Bankers and capitalists, brokers' investors
and spectators had expected for several
months that money would work to )
per cent basis this fall, and it is more
than doubtful that the stock market
would have been greatly affected by the
actual developments in this regard If it
had not been for the violent selling and
the way in which large blocks of few
issues were flung out in the early part of
last week
Reason for the Sales.
Probably there was a reason for these
sales with which the money market was
not concerned, but the rise in interest rates
served as sufficiently obvious and os-
tensible explanation for the subsequent
arrangement of the list.
However. there seems now to be war
rant for believing that the cause of the
markets reverse. whatever it was-and
1t may have had an International signi1-
canoe. considering the part which Lon
don selling played in precipitating the
reactfon-has been obviated. So far as
the money market goes. the advance in
the Bank of England discount rate ap-
peared to be regarded In important quar-
tiers here as marking for this fall at least
the completion of the transition period In
money.
not be further advanced in the near flu
ture. but If 1t is it will be for some
other reason than appears at the present
to be furnished by the conditions of
business and industry. of banking and
finance, the world over.
Foresees Sufficient Cash.
The local money market showed no
change from yesterday In respect either
to call or time accommodations, but the
rates which obtained are such as Wall
street is now becoming accustomed to.
The speculative community is also dis
covering that at the new levels of in
terest a sumciency of money seems to
be forthcoming, and that there is no
ground for experimenting the necessity
or likelihood of q scramble for supplies.
New York exchange at Chicago held it's
favorable rise to par, but at Boston
moved slightly against this city.
Since last Friday ho hocL, ho,,o Io..
almost SoOOO,OOO cash to the subtreasury,
but the continuing drain in this direction
Is Deing offset to some extent by the
movement of funds from the interior.
Foreign exchange opened at slight ad-
vance over yesterday, but weakened
slightly around midday.
Rock Island an Exception.
General gains of fractional proportions
characterized the opening in the stock
market. The conspicuous exception was
Rock Island. which opened up almost two
points on the surprise furnished by the
news that Rock Island interests and Ed
win Hawley had jointly acquired a domi-
nant footing in the Missouri. Kansas and
Texas railroad
The information in this respect which
was supplemented during the day by
statements from various parties in inter-
est was important enough to be a factor
making for general stock market strength.
Among other things 1t was corroborative
of expectations which have been enter
tanned for some time that various rail-
road readjustments and combinations
were pending.
1t also showed that the new Chesapeake
and Ohio system, which has begun to
emerge, was being rounded out on a
large scale. and in friendly relations with
large and longer established interests The
news, however, had the usual effect on
such developments. Missouri, Kansas and
Texas sold off on the discounting theory,
while Rock Island, Chesapeake and Ohio,
and other Hawley stocks were bought
on the theory that the news in so far as
1t affected them was really new.
Traders Proft-Taking.
After the initial dealings the market
developed irregularity under the influence
of traders profit-taking and little bear
ish selling. New York Central was heavy
OF selling. apparently expecting disap-
pointment over the appearance of no in
crease Of Union Pacific interests in the
railroad. Western Union made a favor
able response to the good showing of
earnings in the annual report.
Price movements in other directions
were more or less governed by what are
commonly called technical reasons, Cen
trial Leather sold off on the opportunity
for profit-taking provided by the market
general strength.
The influential issues i'm making for all
around improvement We're undoubtedl
United States Steel and Union Pacific.