The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-11-09
WALL STREET NEWS
Net Result of Days Develop
ments Favorable.
FURTHER BREAK IN COTTON
Recent Rise Carried Far Beyond
the Proper Bounds by Speculative
Favorable Than Anticipated-Gcr-
mRny's Discount Not Advanced.

New York, Nov. S-Not for a long time
have there been so many developments
IN a single day as those witnessed dur
ing business hours to-day whose net
result was so favorable from every con-
sentative financial point OF view. To
begin with. there were a number Of
occurrences which combined 10 very
considerably minimize the chances OF a
near advance in the Bank Of England's
discount rate.
vhe Bank Of Germany to-day did not
advance its discount rate, although ex-
pectation that such action would be taken
was common IN the financial district at
the end OF last week and the bank re-
ported In its weekly showing an increase
in cash and a round decrease in uabili-
ties. This morning the Bank Of Eng
land bought all the $3OOO,OOO gold Offering In
the open London market at a price which
indicated that competition for the metal
was not acute.
In our own country engagement was
made Of over 100000 in gold for shipment
10 Brazil on Wednesdays steamer. which,
OF course. dimlnishes by just this amount
the gold that would otherwise have TO
be drawn from the Bank Of England for
the same purpose.
No Rise Looked For.
Considering all these matters bankers
here We're almost unanimous in their
opinion that there was little II any lIkeli-
hood OF any further rise IN the Bank OF
England's discount rate this week.
Tgur IN Ornn~ r0cnorrc r77orr0rr
worked here in an exceedingly helpful
. way. \ variety OF statistics came to
hand, showing that railway traffic and
Tother business I'm the country was now
greater than at any time during the
year.
There was further violent break IN
the price Of cotton which seemed 70
partake Of the nature Of general
orumb!ing Of the top-heavy and largely
unfounded speculation for che rise IN the
price Of options In the commodity that
has been going on the last thirty days
It is undeniable that the cotton crop OF
the season will be comparatively short.
and that there has been substantial rea-
son for material advance in the market
valuation of the staple
beyond Proper bounds.
The recent rise. however. has been car
ried entirely beyond proper bounds, and
has been solely the result OF artificial ef-
forts to advance the price made by a few
speculative plungers u Is not improbable
that these men have managed 20 sell all
or the greater portion OF their cotton
contracts at figures which have Melted
them n big profit: but it seems pretty
clear at the moment that the limit Of
their efforts 20 advance the price Of the
commodity has nevertheless been reached
At current quotations for cotton. or at
least those which were made a few days
since. the cotton mills cannot buy cotton
and convert II into goods at all except at
a loss. This IS, OF course, only a way Of
stating that the uprush IN the price OF the
commodity has been checked by the law
Of supply and demand and the whole
business world viii be gratded at what
seems 10 be a certainty that the period is
at an end. Again, the government this
afternoon issued its final report on the
years corn crop which was good deal
more favorable than had been popularity
anticipated.