Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-07
BUYING IS RENEWED
Aggressive Purchases of the
Influential Issues
FOR LONGS AND SHORTS
Elements Of Speculative Weakness
Eliminated Today.
OPENS STRONG AT ADVANCES
Despite Proht-Taking Sales and Lon
don's Irregularity Market Gained
in Strength During Dealings.
OPENS STRONG AT ADVANCES
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October I. - Although
money conditions were superficial. the
same as they were yesterday and the
day before. Wall street apparently
changed It's mind about the outlook today
and bought stocks. The buying was for
both long and short account. the reduc-
ton of bearish commitments receiving an
impulse and stimulus from the early ap-
pearance OF aggressive purchases In I'M
portant and influential issues.
So much of a change had come over the
temper of the speculative community that
the preceding stock market developments
of the week were spoken Of even before
the opening this morning as merely
moderate reaction in a bull market.
1t is not exactly clear yet how the de-
clining movement with which the week
began came abOut-that Is, under what
auspices it was conducted. What Is clear
IS that certain results were accomplished
by 1t. With other things, the stock
market. which had become dangerously
spicuously United States Steel. was re-
stored to more normal condition and
structurally strengthened by the elini-
nation Of certain elements Of speculative
weakness.
Short Interest Created.
At the same time it is highly probable
that a substantial short interest was
created. which while the selling move
ment was in progress had very little
room to turn around in.
II seemed a good deal easier for exam
pie. to sell stocks in Yesterdays market
at a limited price than to buy them and
the recoveries which began yesterday aft
ernoon were made on a very small total
OF transactions. compared with the aggre-
gate of business on the declines. Further
more. the time-money market had been
dashed into activity and Wall street
houses had been made t. negotiate sat-
1sfactory bulk Of time loans which they
had not been altogether sure that they
needed or wanted
The sustained level Of the call loan
rate today put the market for time ac-
commodations on practically ~ per
cent basis for all maturities, albeit the
alacrity of the profferers Of time money
might have been taken to indicate an
expectation in banking quarters that at
no very distant period after the end of
rather high.
London Bank Rate.
or course. the salient financial event
of the day was the advance Of the
Bank Of England's discount rate to 3
per cent. There has been much porten-
tous forecasting Of this development,
accompanied by many solemn injunc-
tons to the speculative markets about
the hardening tendencies of money the
world over. Nevertheless. the copdi-
lions which are now beginning to OBJ
tain in the international money mar
ket are only such as have been resu-
larly Incidental to periods OF fairly
and mercantile world
In only one year in the last nine has
the Bank Of England's discount rate been
lower than per cent at this period, and
that was in last years abnormal case
The average bank rate at this season for
the last nine years has been % per
cent. so that the new quotation appears
not to be enormously significant. As q
matter OF fact SO little significance was
attached TO- 1t abroad that the London
stock market was not affected by the adj
vance. and certainly X was not reflected
here. Our own money market was indeed
not without features Of quite as much in
terest as the action Of the Bank of Eng
land.
Call money ruled much closer to ~ per
cent than was the case yesterday, and
was an augury of the improved local bank
situation before long. A large amount OF
the days supplies represented the lend
fngs Of out-of-town institutions, together
featuring corporations. both large and
small.
Banks Gain Cash.
In addition to these factors for relief,
the banks actually gained cash from the
sLbtreasury yesterday as a result of the
deposit OF 100000 by. the government
to the account Of the treasurer Of the
Philippines. Furthermore. domestic ex-
center. New York exchange at Chicago
rising to 10 cents discount. compared with
20 cents yesterday, and 40 cents Monday.
Although London sent over an irregu-
lar range Of quotations for American
stocks. the local market ignored their
initiative and opened strong. with gen.
eral advances Of substantial fractional
proportions. Despite the profit-taking
sales Of traders and some further Nquida-
tions for the account OF SPECTATORS who
had less courage than conviction. the
market progressed more or less steadily
in strength as the session advanced. In
the early afternoon stocks were selling
at the highest levels of the day, and
showed for leading issues gains over
last nights close averaging well over
point each.
Railways Conspicuous.
Conspicuous features in the recovery or.
as may be. the resumption OF the upward
movement were the local fractions. New
York Central. the so-called Gould stocks.
especially Wabash preferred and Denver
and Rio Grande. Missouri. Kansas and
Texas. Norfolk and Western. Reading. the
Rock Island issues. Southern Pacihc,
Union Pacific. United States Steel. Cen
trail Leather. Republic Steel. American
Car and Foundry and American Tele-
phone and Telegraph.
The effect OF the declaration Of the in
ivtd f1Ny
shown In the encouragement which 1t fur
nished for the purpose Of some Of the
stocks In the foregoing list. with regard
TO which interesting dividend expectations
have been entertained.