New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-10-22
FINANCIAL MARKET
STOCKS END STRONG.
Bank of England 1duances
Discount Rate.

Following a weak opening the stock
market gradually developed a f1rmer
tendency, and in the afternoon operations
prices moved toward a higher level I'M
der the influence of covering by the
shorts and buying by substantial inter
ests, the latter being factors in the trad
ing throughout the day, especially in the
early dealings, when the professional
bear element endeavored to bring about
general liquidation on the argument of
the stiff money rates in London and the
abnormal strength in local foreign eX-
change quotations. Stocks were we'll
supported in the morning and the abb
sence Of genuine selling induced more
optimistic sentiment in speculative quar-
tiers. though there was no disposition on
the part of bankers to encourage the idea
that the advance in the Bank of Eng
lands minimum rate of discount was not
factor working against a bull cam
paign in securities. Spectators for the
rise assumed that the worst was known
in regard TO the money market. and that
Il was Of little importance when arrayed
against the many favorable features of
the general situation. Reasoning of this
sort is likely TO injure bull accounts
Trading in United States Steel COM
mon was active and the issue supplied
upward OF third of the total dealings
in all stocks on an irregular price move
ment that showed a final gain of. Il
with maximum rise from the low Of the
morning Of "a. The rally in the active
shares ran from to points. and in the
last half hour OF business the movement
| showed something in the nature of a
bear stampede, especially in Steel, Read
ing and Union Pacific. the three stocks
rejecting a heavily Oversold bear ac-
count. Union Pacific was helped by the
splendid exhibit made by the company
in its annual report, which showed an
earning power and an income from in
vestments that fully warrant the current
level OF the company's securities, the
transportation results for the last fiscal
year making a particularly satisfactory
showing in view of the fact that general
business did not begin TO improve until
the second half of the period covered by
the figures. The Wabash shares We're
strong and active, buying being accom-
panied by a revival of rumors of a
change of control.
The drastic action by the Bank Of
England in raising it's discount rate from
TO per cent, following the advance
week ago from to 4 per cent and an
increase the week before from 21a 10 3
per cent apparently reflects determine
ton by the institution 20 protect itself
against drain upon its resources for
Continental. American and South Amer
lean account, though in Some quarters il
is thought that the movement represents
something unsound in international poll
tics not yet known TO the general public
Perhaps the pressure from the Joint
stock banks in London has compelled
the big British bank 10 place its rate at
wholly abnormal level for this season
Of the year, but whatever the reason NAV
be for the attitude of the governors of
the concern. local spectators who have
been counting upon financing further bull
operations in securities on foreign loans
should find in the higher quotation ample
argument for revising their ideas of the
course OF stocks in the immediate future
A per cent rate at the Bank of England
represents something approaching strin-
gency in the money market. yet in the
weekly return of the English institution
q gain is shown in the percentage of re-
serve 10 liability. the actual reserve
standing at better figures than the aver
age for this time in the last eight years.
Doubtless the refusal of French bank
ers 20 renew loans on American securi-
ties was an influence affecting the deci-
sion OF the Bank of England in placing
its rate at higher figure than known at
this period in recent years, with the OK
ceptiOn OF 1906, when the rate was adj
vanced 20 c per cent, and it is quite prob
able that the new level will serve the
useful purpose of checking the desire of
American spectators 10 operate along
reckless lines az time of advancing in
terest rates throughout the world. open
market discounts in London were strong