Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-10-22
The Markets.
NEW YORK STOCK MARKET.
Features Of the Days Dealings in All
The Leading Stocks.

New York, Oct 2l-The attention Of the
financial world was focused on the
Bank of England today again by third
weekly advance in the official discount
rate full per cent to 3 per cent. ON
October the rate was put at per cent,
after having stood at y per cent since the
first of April. Today's per cent. rate
therefore represents a rise OF = per cent,
doubling the bank rate in two weeks.
Such drastic action is rare except In
panic times and must be accepted as IN
dication of extraordinary conditions. On
Oct. 81, 1907. the rate was raised TO %
per cent. from a Al per cent, in response
to the banking panic which had broken
out in New York. On Nov. following
7 to per cent. as the result of the acute
demand from New York for rescue pur
poses A close parallel to the present sit
uation will be seen in the occurrence of
the fall of 1906 when the bank raised Its
rate to per cent. Sept. 10, to per cent.
ON Oct. II and to per cent. on Oct. 10.
The protective measures IN mat case
We're directed against the New York Dor
rowing and the raid on London's gold
supply, which was pushed through the
medium of American finance fills foated
in London. The huge borrowings on the
part of New York at that time We're
connected directly with the furious spec
ulaation going on in the New York mar
ket
That the present action of the Bank of
England is directed in part against New
in news adviceS from London and is indi-
Gated, also, by the heavy selling of Amer
lean securities for London account which
is forced by the measures of the Eng
lSh bank There were again in heavy
volume today and We're attributed to the
closing out OF loans in London in which
these stocks figured as collateral. United
States Steel was the most notably affected
by this cause, although none OF the
stocks which have figured recently in the
active speculation were entirely exempt
from this pressure. 1t is obvious, how
ever that besides this influeace on the
London banking position there are other
forces at work towards depletion of their
supplies. Although the Bank of England
secured the new supplies of gold in Lon
don on Monday and had made its rate
effective in the private discount rate,
money continues to go out TO other
points and apparently Berlin threatened
further large Withdrawals.
Even today's rise in the bank rate was
greeted by a sharp drop in the Berlin
exchange on London, although all other
exchanges, including our own, moved
strongly in favor of London. In New
York the advance in sterling exchange
culations of the possibility of gold eX-
ports within short time. The paying
off of New York obligations to the Lon
don money market must have gone on
at a lively rate, to judge from the active
demand for cable transfer and sight
drafts on London. What effect this may
have on the loan account of American
banks is the subject of principal interest
here. The New York money market did
not share in the sensational action of
foreign money markets today, the call
loan rate holding at a. per cent as a max
imum and yielding to below that.
The recovery in the stock market was
encouraged by the tranquil tone of the
local money market. There was evidence,
also of the requirement from an uncov-
cred short interest in stocks left from
the operations in anticipation of the adj
vance in the English bank rate. In
United States Steel especially there were
signs of an aggressive turn against the
short interest The vigorous strength
shown by Wabash preferred made it the
subject of conjectures of part in an
other railroad deal The covering move
ment by the shorts made the closing tone
strong.
Bonds We're easy. Total sales, par val
ne, 81 762 900. United States bonds 3's reg
istered declined !. the As registered and
the As coupon Il per cent in the bid
price on call.