Los Angeles herald., 1909-10-08
MARKET AGAIN
MORE NORMAL
LIQUIDATING PRESSURE LESS
PRONOUNCED
U. S. STEEL CONTINUES TO BE
STRONG FACTOR
Speculative Atmosphere Still Foggy,
but Money Channels Show Signs
of Becoming Easier
and Broader
IBY Associated Press.l ]

NEW YORK, oct. THE stock mar
ket gave early evidence today that the
liquidating pressure on United States
Steel had subsided, and the tone of the
whole speculation was shaped accord
ingly. United States Steel continued
disproportionately prominent, but not
unduly SO, as yesterday.
The $4,000 shares of United States
Steel dealt in yesterday, out of an ag-
gregate of 100000 for all stocks, do
not include the sol-acced stop loss or
ders, which, under a rule of the stock
exchange, are not printed on tape.
Allowing for these sales, which are
known to have been on an enormous
decline in the case of Steel, there is
seen to be room for an extensive clear
ing UP of the speculative position in the
amount of business done in the stock
yesterday and the day before. The way
was thus cleared for the substantial
recovery of today.
The money market showed signs of
having been eased also by the substan-
tiaI loan repayments which must have
accompanied the stock market liqulda-
ton of the last day or two.
Funds were reported in better supply
early today, although the loaning rate
was not materially affected.
Bankers closely associated with the
United States Steel corporation offered
large sums in the call loan market.
The immediate effect of this develop
ment was the advance in the official
discount rate of the Bank of England
today from 215 to per cent.
Discount Rates
The hardening of the private discount
rate in London, and the steadlness
making on the banks bullion holdings
revealed by the weekly return pub
lished today, made it evident the official
rise in rate was imminent anyhow
With further demand on American
account threatened, the governors eVi-
IDENTIFY felt themselves constrained to
the step as a protective measure.
Word from Berlin also points to an
early further rise in the official discount
rate of the Imperial Bank of Germany.
The private discount rate rose in Paris
and the Bank of France reported a
sharp decline in bullion holdings, but
with n very heavy contraction in out
standing note issues and credits.
The foreign exchange market in New
York was greatly unsettled in its eff
forts at readjustment by these changes
abroad, which operated as obstacles TO
further extension of credits to Ameri-
can borrowers.
The rise in United States Steel, Union
Pacific, Reading and New York Central
supplied the most substantial portion
of the buying movement. The widest
fluctuations otherwise were in a minor
class of stocks, both railroad and in
dustrial. The soft coal carriers were
strong as group, led by pennsylvania.
The steel industrials all rose briskly
In sympathy with the movement in
United States Steel.
Private estimates give promise of a
better showing for the corn crop In the
Forthcoming monthly government re-
port of conditions than was contained
in last months report. An increase in
the Rio Tinto copper mining dividend
had less effect on copper securities than
had the unfavorable statistical position
of the metal. The reselling of stocks
wiped out gains in the principal stocks
before the day was over, and made the
closing weak.
Bonds were irregular. Total sales,
par value, $4,S6S,000 United States %
declined II per cent on call