Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-21
NO EFFECT ON CHANGE
British Discount Rate Not Felt
on Prices.
GENERAL TONE IMPROVES
Disposition to Make Advance if
Stimulus Appears.
UNION PACIFIC'S EXHIBIT
One of the Measures of Railroad
Prosperity Contributing to Index
of Country's Condition.
Sperial Dispatch to The Star.

Special Dispatch to The Star
NEW YORK October 21-For the
third successive week this month the
Bank of England held the attention of
the financial world by advancing it's
minimum rate of discount l per cent
today to ; per cent. For the third
successive week also, our own stock
market gave Il very excellent account
of itself by the minimum effect which
the advance produced on security prices
By all laws of psychology. as we'll as
according to the theories of the econo-
mist, the third advance separated by
SO short a period from the first should
have produced culminative impress
sion. which. if the local stock market were
not in a pretty strong position, would
have resulted in an extensive unsettle-
ment of quoted values, if not demorali-
cation.
Nothing OF the kim. happened today
during the greater part of the session.
On the contrary, after an early heaVl-
ness all around the market improved
both In tone and in price movement. and
i'll the early part of the afternoon ex-
hibited symptoms of disposition to
make a general advance if the necessary
stimulus of aggressive leadership were
Forthcoming.
The course of the market today, as
d
tolerably adequate answer to the sapient
charges which have been made of late
that Wall street speculation was very
largely responsible for the steps which
the Bank of England has been taking
TO control effectively not only the Lon
don. but the international money market
In this month the bank rate has now
been doubled and during this period
the statistical securities of which rec
oruS have long been kept in Wall street
from the prices obtaining the first Of
the month of about 21a per cent.
No Speculative Excess.
There are hardly any indications OF
speculative excess in this There has
been large liquidation, especially for
London account. but sales have been
well absorbed indicating no extensively
over-bought position in the market. If
there had been an excessive speculation
for the rise the important money mar
ket changes which have been actively
taking place should have forced a far
more considerable decline.
On the u.Jer hand the fact of the de-
cline itself demonstrates that there is no
crazy inclination here to defy in the spec
ulative arena the rules and regulations
which the money market imposes.
\ difficult question for those to answer
who hold the view that the Bank of
England has all this month been issuing
not only warnings but rebukeS to Wall
street would be to tell how much less
than present prices they regard American
securities as worth: how much of a
decline could there be without heavy, in
vestment buying induced by the prospects
for securities indicated by fundamental
conditions, or how much of decline
should there be, considering those pros
poets.
What those prospects are was brilliant
ly illustrated today by the publication of
the annual report of the Union Pacific
railroad This is one of the half dozen
reports which are measures of railroad
prosperity in particular and of prosperity
Of the country in general.
Union Pacific's Earnings.
The figures furnished today show that
last year Union Pacific earned a frac-
ton less than 10 per cent on the common
stock. The earnings from all sources
available for dividends in Union Pacific
common amounted to S37.617, 900. or So
422.OOO more than the company earned OF
the stock in the best previous year, 1907
Further testimony to the strength OF
general conditions and of the Union Pa
citic in particular twas borne by the bal
ance sheet showing a total profit and loss
surplus of xS3.OO1OHU, or more than -
per cent on both classes of stock and
about ~ per cent on the common stock
while current assets exceeded current
liabilities by 4s,JO.UO, practically all
cash. compared with a similar excess
last year of about S11. 100000.
The list of securities held for invest
ment showed no change of great conse-
quence, but did disclose the fact that the
stock. Great Northern Ore certificates
and the balance of its Great Northern
preferred and Northern Pacific while il
had increased its holdings of Illinois Cen