New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-15
FINANCIAL MARKETS
ACTIVE DAY IN STOCKS.
Money Rates Firm-Bank of Eng
land AdUaRceS Discount Rate.

Stocks were strong the larger part OF the
day, with the best showing in the last hour'
when sharp advances were reported throughout
the active list on buying movement that re-
fected uneasiness the part OF the shorts
over the absence of liquidation or other selling
that would have enabled them to cover their
contracts without the effort Of bidding Tor Sc
curities The fact that the advance was led by
United States Steel common. which gained 37s
points; the Hartman shares. Reading and
Amalgamated Copper created the impression
that the larger bull interests again were &C
lively employed in manipulation along the lines
that marked the operations of recent weeks In
spite OF adverse conditions in the money mar
ket and the relatively high prices prevailing in
the general market There appeared TO be a great
scarcity Of stock for covering purposes. except at
unattractive figures for the bears, but notwlth-
standing the aggressive strength shown there
was little response from commission houses for
public account and disposition on the part
of the banking interests to encourage the move
ment which had all the earmarks Of the dan
gerous sort of manipulation that recently car
ried Steel common TO 947s and Reading and
other nigh priced issues TO fictitious levels.
The transactions in United States Steel far eX-
ceeded in volume those in any other security,
the advance being accompanied by a revival
of the we'll founded rumor that the directors of
the corporation would increase the dividend at
the next quarterly meeting. There is no rea-
son TO suppose that the dividend will not be
increased, but the stock already has fully meas
ured the value or a per cent rate, ana 10
justify par, the price predicted for the stock,
3 per cent basis should be established. Powerful
interests however, are behind the speculation in
Steel common, and ii is useless for bear traders
TO try figure out reason for opposing the
rise, though small margin operators should bear
in mind that the stock slumped from 945s to
S5la in a few days and that the transactions in
it have reached a proportion that involves big
fluctuations either way. The issue supplied
35l 600 shares yesterday out of a total in all
Of
strong features, and, among the specialties.
Pittsburg Coal and Pacific Mail
The Bank of England is taking every pre-
caution to protect its stock of gold. and the
/ advance yesterday in its minimum rate of dis
count from to per cent emphasizes the
tendency of the money markets of the world
toward higher interest quotations. In recent
weeks there have been heavy drains on the
gold holdings of the British institution.
consequences Of the requirements of Egypt,
South America and Russia, while all the
South African gold offered in the open Lon
don market in recent weeks has been secured
by the Continent, and at the same time there
has been a heavy discounting of American
finance bills at the British capital, represent
ing speculative commitments at New York.
The advance in call money here as an influence
on the sterling exchange market has been off
set by the advance in discounts abroad. and
il therefore is quite evident that in order to
attract gold 10 the United States much higher
level of money will be necessary, which might
again be offset by a further marking up in
the Bank Of England's discount rate. This
market. unfortunately, at the moment has
foreign trade balance to fall back upon. but
even without importations of the precious
metal the local situation will not develop acute
conditions If reckless bull speculation the
Stock Exchange is held in check-an operation
which viii be opposed by the speculative Gle
ment that appears TO be counting issue
II emergency currency which can be applied for
under certain conditions in the event of
actual stringency in the money market. No
currency association has been formed, and
emergency currency can be issued unless appli-
cation is made for il 10y such association
Moreover the banks at this centre show dis
position take any steps in the matter.
there is nothing in the position of the country's
industries that demands additional hanknotes.
az provided for in the amendment made to the
national hank law In 1905.
Local money rates were firm yesterday, espe-
cially in the market for time accommoda alton
while further strength reported in for
eign exchange. Interior banks continued to
general movement Of money suggested another
material falling off in bank cash holdings IN
to-mOrrow's Clearing House statement The
weekly return Of the Bank OF England showed
a reduction i'm bullion Of El,2O0OO0. making "A
loss Of t6.OO0OOO in less than month, or L.
per cent o1 its gold holdings Reserve decreased
L1N1Otb and the proportion of reserve to liza
bility reported at 400 per cent. against an
average for the last nine years at this time of
1907 per cent. The latter would he higher
we've il not for the low percentage Of 1906
di.,yO-when the bank rate was advanced 10 8