The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-10-21
FOREIGNERS SELL OUR SECURITIES
AND RESTRICT CREDITS.
DECLINES FOLLOW.

NEW YORK, Oct. 2l.-The Bank Of
England raised its discount rate TO 5
4 per cent, thereby sending a Chiu down
the spine of the London market which
was reflected in our opening. The
early market looked tired, and acted
just as it looked. The dullness was pc
culiar. IN that il indicated hesitation
on the part Of bears who did not have
the courage OF their convictions TO hit
the list on every angle. The sales OF
Steel common were very heavy, ~ point
decline resulting. There were also nu-
merous losses here and there through
out the list. a mild attack on the Hill
shares. a turn for the worse in Brook
lyn Rapid Transit. Delaware and
. Hudson, Louisville and Nashville, and
even on Union Pacific at the opening
or shortly thereafter.
While this weakness was in evidence,
Nthe operations were not at all heavy,
the bears attacking slowly and with
more or less timidity.
The Continent Calls Loans
American stocks in London sold of
from the opening. and were weak in
the afternoon, especially when the fur
Their advance in the bank rate was
announced. Consols seemed to have
discounted the advance in Wednesday s
5-16 decline, but the rest of the market
was depressed. The feature OF the mar
ket unQuestiOnably was the liquidation
of large blocks OF American stocks hith-
erto carried in loans in London and on
the Continent The refusal Of Paris
&c renew such loans accounts for the
continental selling in London, which
has been the feature of the past ten
DAYS and has been reflected in the
heavy arbitrage selling here. Money
VA in zFHf-h ark - q
demand as TO explain entirely the high
hank rate. Foreign houses sold $1,000
shares yesterday and more today
The Union Pacific report viii be out
tomorrow, and the United Steel Cor
poration's showing for the third quarter
on Tuesday next. All Indications are
that both will be remarkably satisfac-
tory TO shareholders.
Underlying conditions in the United
States are SO extremely satisfactory
that the bears do not dare-tO take the
initiative and jump on the market. II
Is saggtng Of its own weight, slowly
sagging. with modest recOveries, but
every time the bears have put out a
line or shorts of respectable size they
have been ruthlessiy run inland they
dread it.
Rallies Do Not Hold
The rallies have a hard time main
tanning themselves. Indeed. they do not
hold. Little Steel opened at $50. a break
OF = OF d point fl6ul OF the reel
dropped TO SIS, rallied to S9l4, and went
back to So. Republic Steel was Is of;
Railway Springs 2, while Rubber was a
point lower.
Union Pacific opened at 201zs, a s loss.
went TO 2O15z. recovered to 203z on the
election Of Judge LOVett to the pTesi-
dency. Then II dropped again &c 2025s,
still holding a small fraction net gain.
St Paul was Is and Southern Pacific Il
OF on the recoVeTIes. Northern Pacific
= lower. Point declines We're general
in a number Of rails without much re-
C0very.
II wasn't a satisfactory market for
anyone The advance in the Bank Of
England rate was the third IN a short
time, and was probably made as an i'm
pressive move against the expansion OF
American credit abroad