The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-10-12

New York Oct u.-During the first
half hour OF to-days stock market gains
running to more than a point in most
cases. and IN several instances to con-
siderably more than this. were shown in
the active shares. and this was a 1o-
spouse which was everywhere considered
to be natural TO the favorable bank state
ment Of last Saturday, with its record
breaking showing OF a decrease OF 49,
100000 in loans in the actual figures.
With the bank surplus standing by
means Of this loan curtallment about
S5O00,000. money squeeze" on the stock
exchange was obviously a good deal far
Their away than many people feared 1t
might be at one time last week. and
there-was a general disposition among
speculative interests friendly 10 the mar
ket TO take heart accordingly. But the
strength shown In the market did not
last.
The helpful influence OF the hank state
ment was from the start measurably Of
set by the news that the Imperial Bank
Of Germany had raised its discount rate
from TO per cent, even If such action
had been looked for to-day. and although
the interest rate OF the Reichs bank
does not now stand at a point higher
than It not infreQuently does at this time
OF the year
Discount Rates Stronger.
In addition the foreign cables told OF a
Strengthening or discount rates all over
Europe and when the time came for the
renewal OF daily loans the rate commonly
charged therefor by lending institutions
for this accommodation was per cent,
which represented an advance over the
rate generally prevailing on Friday. IS
matter was more or less dlsquieting, in
asmuch as a somewhat lower rate or az
least no advance therein had been looked
for. in view OF the easier conditions dis
closed IN Saturdays bank statement. and
there was revival Of apprehensions re-
gardng the money situation and the
market started on declining course
which ran. although by no means with
great celebrity throughout the day, and
carried the standard stocks 10 the lowest
prices yet seen since the general de-
cline IN stocks started a week ago.
There was no especial feature in to-
days market leading stocks declining
practically in the same degree. None Of
them seemed TO show more weakness than
the others. substantially the only quar-
ter IN which an advancing tendency was
manifested was the Missouri, Kansas and
Texas shares, both common and prefer
red, which made a net rise for the day
OF IA and / point, respectively.
No Reason Known.
These are stocks that have been stead
ily bought for some time past. for what
reason Wall street. in general. appears
TO be In complete ignorance.
One explanation OF the movement !as
been, however, that large block OF the
stocks held in a concentrated form by
certain foreign holders has been slowly
iquidated throughout the summer, and
that the shares thus sold have passed
into strong hands In this country. The
ran IN values was at least not checked
to-day by the fact that tomorrow. ow-
/ ing TO the Columbus holiday, stock ex-
change business viii be suspended. Ster-
/ ling exchange to-day was strong. de-
! spite the higher rates for money. the
( greater flrmuess being due as was said
10 the pressure TO make remittances 70
London from this side for the forthcom-
I ing f0rtnightly financial settlements on
| the other side