Norwich bulletin., 1909-09-21
FINANCIAL AND COMMERCIAL.
RAPID RISE ON
 LARGE TRANSACTIONS
Due to Substantial Recuperation in
 Banking Surplus.

New York, Sept O.--Encourag cement | for a resumption of speculative op- l erations was found in the substantial recuperation in the banking surplus l disclosed by the weekly bank state ment on Saturday after the stock mar | ket had closed. The fact that scal- | ing down of the loan account was re- | sponsible for the reduction of the re- | serve requirement. did not detract from | the satisfaction felt at the restoration of broader margin in the surplus. l Neither did the facts that loans had been shifted to trust companies and to foreign lenders to make this show , ing, ratheP-than an actual liquidation of loans. The speculative element ap- parently concluded that this process could be easily extended to save them from trouble. The long time favor ties in the speculation resumed bheir prominent position in the market at the outset and rose rapidly on large transactions. Some check to the ad- vance and a decided sfrinkage in the activity came when it became known that some of the banks were calling loans and that readjustment of accom- modations was made necessary. No urgent liquidation of stocks was caus- ed by this, but renewed attention was called to the money position. Interior money markets reported a rising ten- dency of interesfrates and an increas-
 ed pressure of demand. On the for
 eign side the Imperial Bank of Ger
 many after hesitating over the week
 end advanced its official discount rate
 from 1-2 to per cent, as a meas
 ure of protection against the heavy
 drain looked fer in connection with the
 coming October settlements. The pri-
 vate discount rate rose both in Lon
 don and Paris, and, while the compe-
 tition for the weekly arrival of gold in
 the London market was withdrawn,
 Russia took all the available supply at
 a reduction of penny an ounce in
 the price. Our own foreign exchange
 market was thus affected and was ap-
 preciably firmer with lessened advant
 age to American borrowers of funds The speculation was incited
 by various factors i'll which rumors
 played a considerable part. Often re-
 peated run1ors that an announcement
 was imminent that would materially
 benefit Reading stockholders was in-
 dustriously used. United States Steel
 rose briskly to a new record level,
 helped by the continued highly favor
 able condition reported from all
 branches of the trade. An attempt
 was made to relieve the depressing
 influence Of recent unfavorable copper
 trade advices by intimations that rise
 in the price of the metal was at hand
 though by what agency was not clear
 ly specified The price of copper war
 rants in London had a small advance,
 and Rio Tintos were strong in the
 market. Southern Pacific and Union Pacific were heavily bought, and the
 importance of the alleged agreements
 amongst banking interests to insure
 harmony in the control of those prop
 critics was dwelt upon. The sympa-
 tT1etic influence of these movements on
 the general list was considerable, but
 was mt without exceptions. A notable
 case in point was St. Paul, which start
 ed out of the current of the opening
 upward price movement and later be-
 came depressed. The stock was af-
 fected partly by profit taking after last
 weeks material advance, but there
 were speculative buyers also who were
 disappointed that no action was taken
 at the annual meeting Saturday which
 would supply rights" to stockholders, as had been rumored. The irregular tone of the market increased as the day progressed. Bonds were firm. To- tai sales. par value, $3,820,000. United States bonds were unchanged on call.