The Washington herald., 1909-10-14
WALL STREET NEWS
Cheerful SentimentAD
the Stock Market.
EXPECT RISE IN PRICES DAILY
Reason Attributed for Return OF OPP
timisE 60 Financial District IL
that Movement of Money Westward
Is Already ut Its Mnximum-ad-
vance In Market Is Noticeable.

New York. Oct 12-what was unde
niably more cheerful feeling animated
stock exchange sentiment to-day Par
OF this was doubtless due to the more
natural readjustment OF the speculative
position Of the market following Mon
days large volume OF liquidnting sales
and second violent break IN prices.
In greater degree It seemed the better
feeling was caused by more careful TAX
ing OF thought In financial circles over
the Columbus Day holiday OF the large
decline in values that had been accom-
plished in the last fortnight In this
period United States Steel stock bad
declined points. Union Pacific 10,
Reading Il, St. Paul 9, with other issues
less active.
Recent Recession Due.
The market as n whole is now not FAR
from the range at which 1t was full
month ago and its recent recession has
been due simply and solely to what every
one knows is a temporary matter, the
higher rates for money resultant upon the
annual call for funds from the West 10
move the crops
There are few people with any Wall
street experience who do not appreciate
the fact that with general business pros
poets continuing to hold as bright as they
do, the hour will soon arrive when with
the fail seasons exceptional financial
necessities over, the danger OF a
squeeze" viii pass. and prices OF stocks
governed solely by intrinsic considera-
lions viii rise.
The substantial reason for a return Of
optimism TO the financial district to-day
was. therefore. the view privately, but
no less strongly expressed that the move
ment Of money Westward was already
at it's maximum and that In a short pc
Rod might be expected 20 give evidence
OF q decreasing force. One proof OF this
was plain enough to-day in the rise TO
par OF New York exchange In Chicago.
Another was the fact that Southern
banks are beginning 10 send money 10
this center. The cotton market has moved
this year with particular celebrity, and Il
appears also 10 be the cause that al
though Western farmers are still holding
their wheat FOR higher prices 10 a greater
or less extent, the leading agricultural
staples are still passing so rapidly out Of
first hands as to lead 20 an Inevitable
release IN the near future Of money thar
has been kept out OF circulation on &C.
count OF the harvest.
The upward movement IN the market
to-day was all the more noteworthy be-
cause Il took place IN the face OF q
widespread conviction. both in this coun-
try and IN London. that the Bank OF
highlands discount rate was likely 10 be
raised tomorrow 20 3I1 per cent. and per
haps even 10 per cent, from its present
3 per cent level
DiscOuntinK Takes Place.
The discounting OF this step appears to
have already taken place. and sales Of
stock made on account OF the apprehen-
sion were the features OF transactions on
the London market yesterday. when our
stock exchange was closed. But to-day
tho London market was flrmer than Il
was on the day before, and the transac-
tons OF trade brokers here were incon-
siderable.
Prices Of stocks with us were for the
most part in the opening dealings a lit
tie lower than their final quotations on
Monday. but the inherent upward ten
dency OF the market quickly asserted it
self. and prices rose in a steady and sus-
tained way throughout the day. closing