The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-11-02
WALL STREET NEWS
Tendency of the Stock Mar
ket Is Toward Dizziness.
NO CHANGE IN DISCOUNT RATE
Subtreasury shows Loss of Nearly
$500, 900 - Money Situation az a
of Orders Pouring in on Equip
ment Companies and steel Mills.

New York. Nov. l-Because OF to-mor-
no business whatever emanatlng from
London or the European financial centers
to-day on account Of the suspension OF
business for All Saints Day. and the
large absenteelsm from our own financial
district tho plain tendency OF to-day's
stock market was toward dullness. Deal
ings IN stocks were less than on any tull
day IN two months. But Joined with all
this was the equally obvious phenomenon
that the underlying disposition Of the
market was TO advance.
1t is conceded by every one that the
two powerful factors now operating upon
market valuations IS first the question OF
money rates through the remainder OF
the year. and secondly the general bust
ness prospect.
No Change In Discount Rate.
To-day's news bearing upon the first
OF these matters was rather mixed. There
was no change in the discount rate OF the
Imperial Bank OF Germany, although the
bank made rather poor weekly state
ment of condition, exhibiting an Increase
OF loans and decrease in the amount
OF cash held. THIS return was. how
ever. admittedly brought about by the
banking transactions incident 10 the No
vember settlements.
The bank statements OF the great
European institutions almost invariably
present a poorer showing temporarily on
such occasions. The chief development OF
interest to-day was the ability shown
by the Bank OF England 10 acquire az
the minimum price nearly 100000 OF
new gold offered for sale here and pos
slbly in consequence OF this. the financial
discount rate in the open London market
was to-day lowered
To-day in our own country tho trans
actions OF the local banks with the sub
treasury showed a loss in cash during
the week Of nearly S3,5O0OO0. a showing
that is OF course not so goOd as was
the case last week. The explanation OF
this was the drafts made upon Local
banks by out-of-town institutions for the
payment OF November taxes as we'll also
on account OF reasons connected with the
November ! disbursements.
The best test OF the money situation
lay. however. in the fact that bids for
time money were again to-day reduced.
and that bank renewals OF call loans
were available at even less than 4 per
cent. but just before the close OF business
hours a little belated borrowing sent the
call rate up TO 3 per cent.
Better Industrial Position.
The money situation. therefore, to-day
was not AZ all disturbing, and II was
clear that the steadily developing
strength OF the country's industrial posi-
ton was afording reasons for purchases
OF stocks whose strength could not be
gainsaid.
The news over Sunday teemed with
authoritative statements OF the volume OF
orders now pouring in upon the railway
equipment companies and steel manufac-
turing companies OF every sort for all
kinds OF iron and steel production. and
there was. therefore, from the very out
set Of the market to-day lively continu-
alton OF the upward movement which set
IN so briskly at the close OF the week
I'm the prominent railway equipment
stocks such as the shares OF the Ameri-
can Locomotive. American steel Foun-
dries. American Car and Foundry. and
Pressed steel Car Company.
The movement. too, came to embrace
the Industrial list as a whole. and the
United States Rubber. Central Leather.
American Beet Sugar Consolidated Gas.
Pittsburg Coal. Distillers' Securities, and
other similar stocks were definitely
strong.
But II the buying OF the Industrial
stocks was the leading feature Of the
market to-day. the railroad shares were
by no means neglected and a general up
ward impulse ran through the market as
a whole