Norwich bulletin., 1909-10-23
FINANCIAL AND COMMERCIAL.
SOME RECOVERY IN PRICES.
Heavy Selling Pressure in Evidence While Foreign Exchanges Were Open.

New York Oct 22.-The stock mar ket today repeated its action of several days preceding. Heavy selling pressure was in evidence while the foreign stock exchanges were in session. When closing time abroad had arrived, owing to the difference in time between these points and New York, this pressure subsided and made way for some re- covery in prices. The dominant influ- ence in all financial markets continued to be the London money position as directed by the Bank of England ac- tion. The rise in private discount rates in London proved that the Bank of England found the power to make it's higher rate effective and to maintain it's control of the open money market. This gave added influence to the ad- monitory advices from London of the determination of the bank authorities to protect the banking resources at that center from further inroads by foreign borrowers or seekers for gold reserves. It was urged in fact, that the recuperation effected in the posi- tion of the English bank during the past week under the operation of the four per cent. rate threw some nys- tery about the further advance to five per cent which was made yesterday. This view did not take account of the fact that there were heavy withdraw als of gold from the bank yesterday and apparently a prospect of more which called for the additional pro- tective measure. There were heard in New York banking circles some whis- perings of a possible political motive lying back of the banks drastic action and based on knowledge of government tai affairs not known to the general public. This suggestion was in some part a reply to the reported view of the London banking world of the responsi- bility of New York speculative opera tions in the stock market and the huge borrowings connected with them for the state of affairs developed in the London money market. The Bank of England's action proved it's efficacy, not only on the home money market
 but on the foreign exchanges. which moved in. favor of London at all points. Money rates were affected accordingly, giving point to the solicitude reported from Berlin of a possible demand on that center for gold which would force further advance in the official dis count rate of the Imperial Bank of Germany. The rapid advance in for eign exchange rates in the New York market continued and engagements were announced of gold for shipment to South America on London account. Negotiations were reported to be in DIOSEtSS lDOhlllE TUT 6OlQ tAPpiiS Europe next week. Foreign exchanges reacted sharply at last. The money market here was not unaffected by these developments especially the time loan department The call loan branch remained tranquil, notwithstanding the action of the foreign exchange market. Much of the selling of stocks here were directly for London account. It was reported that very heavy shipments Of CO., in transit from london to New York. It is the custom of the stock market to borrow stocks for de- livery which are sold on foreign ac- count, pending the arrival of the cer- tificates of stocks. Actual payment for such stocks, therefore, are delayed un- til their arrival from London. The weeks currency movement with the interior affords some relief to senti- ment over the money position. The weeks higher money rates apparently had operated to attract considerable amounts of bank cash for other points The sub treasury operations meantime have not been burdensome on the banks. having yielded @ nominal sum to those institutions, compared with withdra wals last week of over $5,o00,- 900. It is estimated that the banks have gained in the neighborhood of $3000 900 in cash from various sources during the week. How the weeks Op- erations in the foreign exchange mar ket may have affected the loan item will be studied with great interest on the appearance of the bank statement after the close of tomorrow's stock market This doubtful factor may have had to do with the fresh selling of stocks late in the day which closed the market weak and at the lowest. Bonds were heavy. Total sales, par value, S3,310,000 United States bonds were unchanged on call.