New-York tribune., 1910-01-21
FINANCIAL MARKET
MOST STOCKS HIGHER.
Sterling Exchange Dorma and
Bar1E of England Rate
Reduced.

Higher prices for American stocks In
the London market were responsible TOT
a strong opening on the local exchange.
but initial gains were lost before the
end of the first hour on a resumption OF
liquidation. a large part Of which rep
resented selling by commission houses
for customers who failed to respond TO
calls for more margin. In the subse-
uuent operations, however, covering OF
shorts and buying by substantial houses
were effective in bringing about general
Improvement. The advance for orler
period even extending to Hooking Coal
and Iron, which in the early trading
sold as low as %, against Wednesdays
closing at 33 It's final price showed
net loss of 10 points. Chesapeake and
Ohio and other Hawley shares were ex-
ceptions to the advancing tendency In
the second hour, their decline apparently
being due to a concerted attack upon this
group which for many weeks has been
manipulated by a large and strong bull
pool with extensive financial backing
The influence of good buying In other
securities finally extended to these Is
sues, and the larger part Of their decline
was recovered before the close. Ad-
vances in the leading shares ran from
/ to 3 points, with the chief net gains in
United States Steel, Northern Pacific,
Union Pacific, Reading. New York Cen
trail, Rock Island. Southern Pacific, Great
Northern and Amalgamated Copper.
The advance was not, according to the
opinion of we'll Informed interests. the
beginning Of bull movement. Indeed,
it was thought in conservative circles
that further liquidation would develop
before anything like sustained improve
ment could be expected, and the fact,
pretty generally known. that several
banks had taken stand against houses
and individuals concerned in recent bull
manipulation encouraged the belief that
a general cleaning up of the speculative
situation would be made at the expense
of prices. Another Stock Exchange
failure was announced yesterday, and
apparent signs of distress were noted in
other quarters. though no apprehension
was felt regarding the position of the
big speculative houses. The banking
situation is sound. Traders predicted at
the close of business that the rally would
run further to-day, and they pointed to
the fact that Steel commons bid price
at the end was higher than the best
price for actual sales, which, Of course,
would indicate a strong opening.
The demand for loan accommodation Is
not active at the moment, and the liqui-
dation that has taken place in the spec
ulative markets has increased bank sup
plies to a material extent. which event
uaIIy should have a good effect upon Sc
curities The inquiry by commercial
borrowers is not heavy, but bankers at
this centre and at interior points look
for a substantial improvement In this
respect In the course of the next month.
Easier London discounts and yesterdays
reduction in the Bank OF England's min
imum rate TO 31a per cent have served
to bring about heavier tendency in the
local sterling market. but New York is
still being called upon to settle London
obligations in South America as reflect
ed in gold shipments from here to Ar
Gentina and Brazil. The supply OF COM
mercial bills is not large. and as exports
of merchandise continue to decline,
while imports are increasing, the chances
do not favor period of ease in foreign
exchange quotations at this point. the
only expectation of materially lower
rates being based on the possibility of
large European buying movement in
American securities as a consequence OF