The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1909-10-22
THE STOCK MARKET

New York, Oct. ai--The attention OF
the financial world was fodused on the
Bank OF England today again by 2
third weekly advance In the official
to five per cent. ON October : the
rate was put at per cent, after hAv-
ms stood at 2 1-2 per cent since the
first Of April Today's 9 per cent rate,
cent, doubling the bank rate In two
Such drastic action IL rare except
In pantc times and must be accepted
nd On os 81 so sSs ssss
raised to 6 la per cent from 4 la
per cent In response to the banking
panic which, had broken out IN New
YORK On Nov & following the rate
Z per cent AZ result Of the demand
from New York for rescue purposes
A. closer parallel to the present sit
ustion will be seen In the occurrences
raised its rate to I per cent, Sept, 10:
to per cent on Oct. IL, ami to 8
per cent on Oct. 49,
The protective measures In that case
borrowing and the raid on Londons
gold supply. which was pushed
through the medium Of American
finance bills 1oated in London. The
York at that time was connected al
rectly with the furious speculation GO
Ing on In the New York stock mar
That the present action Of the Bank
OF England is directed in part against
New FORKS speculative borrowers 10
affirmed In news adyices from London
and II Is Indicated also by the heavy
selling of American securities for
the measures of the English banks.
There were gains In heavy volume to-
day, and were attributed to the clos
Ing out Of loans in London in which
these stocks figured as collateral
United States Steel was the most
notably affected by this cause, al
though none Of the stocks which have
figured recently In the active specu-
pressure: 1t Is obvious. however,
that besides the influence on the Lon
don banking position. there are other
forces at work towards depletion on
their supplies. Although the Bank of
England secured the new supplies o.
gold In London on Monday and had
made its rate effective In the private
discount rate. gold continues TO 20 out
to other points. and apparently Berlin
threatens further large Withdrawals.
Even today's rise In the bank rate
was greeted by q sharp drop In the
Berlin exchange on London. although
own. moved strongly in favor OF Lon
don. In New York the advance in
sterling exchange was so violent as TO
give rise to calculations of the posst-
time The paying of of New York
obligations to the London market have
gone on at a lively rate to judge from
the active demand for cable transfers
and sight drafts on London. What
effect this may have on the loan ac-
count of the American banks In the
subject of principal interest here. The
violent reduction In the New YosS
loan account, which has been going on
since the first of October, was suppos-
ed to be accomplished. largely by the
transfer of obligations to other money
markets. especially London, as the Sc
curities market gave no sign of iiqui-
dalton sufficient TO cover the enormous
repayments to the New York banks.
The New York money market did not
share In the sensational activity of
foreign money market today, the call
loan rate holding at 1-2 per cent as
a maximum and yielding to below
that.
The recovery in the stock market
was encouraged by the tranquil tone
was evidence also of the requirement
from an uncovered short interest in
stocks left from the operations in an
ticipation of the advance in the Eng
lish bank rate. In United States Steel
especially, there were signs of an ag-
gressiYe turn against the short inter-
est.
the vigorous strength shown by
wabash preferred even in face of the
early weakness Of the market. male il
the subject of conjecture as to Its par
ticipation in another railroad deal.
The covering movement by the shorts
made the closing tone strong.
Bonds were easy. Total sales, par
value. $2,762, 600.
United States as registered declined
Is; the As, registered. Ia, and the
as, coupon, IA per cent in the bid
price on call.
CLOSING STOCK LIST