Norwich bulletin., 1909-12-10
FINANCIAL AND COMMERCIAL.
STOCK MARKET STRONGER. Effect of Reduction in Bank of England
 Official Discount Rate.

New York, Dec. 9.-The reduction in the Bank of England official discount rate today had a strengthening effect on ecurities markets in all the great final lcial centers. The action came as a surprise, as the conditions which pror npted 1t have been in existence for seve nal weeks past, without influencing the government to recede from their pi- siti'b on. The onen discount rate in Lon- don. has been in the neighborhood of 1 Ter cent. below the bank rate for sor ne time, and this discrepancy would ort linarily exclude the Bank of England from sharing in banking profits, which is. function of the institution in con- jl melton with it's larger public offices. II s measures to force up the money nate and attract gold to London have been at the cost of a profitable share In banking bushes for the time. It was supposed that the high bank rate would be retained at least until the [ urn of the year in order that the i'm creased requirements of the money l: market for the yearly settlements might be made to yield a return that
 would recoup the bank for its costly services in safeguarding the central banking reserve. The reduction in the rate serves as a notice to the financial world that the safeguarding measures had been more than sufficient. The re- AuCIlOl OI Lllc Idl6 CdIlC III Spll0 U1 additional large withdrawals from the bank today for shipment to South America Further engagements were made here also for shipment to South America on London account. The question presents itself how far the diminished requirements of the London money market may be due to halt in trade activity. The general effect of the lowered rate was cheering to finan- cial markets and was a prime factor in the strength of the New York stock market. The demand which carried prices upwards was sonew what deSul- tory and spotty in character. Many stocks not usually prominent and in cluding a considerable list of low pric- ment. A rise in Pennsylvania calls attention to the fact that subscriptions to the new stock offered to sharehold- CTS must be made in the period be- tween December 8 to IS. The Trunk Line group generally was strong, the differential lines moving with the main Trunk lines. The rise in the Rock Is- land stocks and in Wabash preferred gave a lease of life to rumors of a combination of those lines in connec- ton with the interest secured in Le- high Valley by the Rock Island con- trolling factors. Amalgamated Copper and other metaE and smelting indus trials responded to reports that pre- li1nintry details of the proposed copper merger were going forward once more. In some of the other stocks which usu- ally figure as speculative leaders the movement was less conspicuous and there were signs of profit taking from time to time. United States moved narrowly and Reading showed con- straint in it's action. The volume of the market as 8 whole shrank consid- erably by reason of the distinguished activity in these usual favorites of the speculation. An extra dividend by one of the leading copper producers was partly responsible for the strength in that group. There was a suggestion of preparation for window dressing for the showing to be made in investment accounts and balance sheets at the end of the year in the way in which quo- tations were marked up at some points. The closing tone was strong after re- action. Bonds were firm. Total sales, par value, s4,464, 900. United States bonds were unchanged on call,