The Washington herald., 1910-05-05
WALL STREET NEWS
Sharp Rise in Stocks Is Due
to Several Causes.
DROP IN STERLING EXCHANGE
This Plays Leading Part I'm Buoy
ancy OF Market-FOreign Buying of
Good Character Results I'm Advance
DiVerginE from Two to Four
Points in Standard Issues.

New York. May 4-To-day the market
wore a different face from that which It
assumed yesterday and the day before
and at the end of last week. An impress
sion deepened overnight among the specu-
lative fraternity that most Of the selling
OF stocks recently and particularly that
which brought about the sharp weakness
in the market just before the close Of
business yesterday afternoon was not due
TO actual liquidation, but TO mere drives
az by operators for the fall. and. more
over. that these assaults upon the market
were not only quite unwarranted by ex-
listing conditions, but were obviously prov
ing less successful on each repetition.
This change in current financial opinion
was further assisted by the fac. that
after the close Of stock exchange hours
yesterday notable weakness developed In
sterling exchange. To-day at the outset
the price Of sterling broke heavily. bring
ing its quotation down a cent and a half
in the pound from the high level lately
recorded at the time OF the large gold
exports
Due 60 Several Causes.
The drop in sterling appeared TO be due
TO a good many causes. One. the develop
ment or decidedly easier monetary condI-
tons not only in London. but in all the
great European financial cegters: another
the large purchases OF stock here up 10
this morning for foreign account amount
ing, as is calculated. 20 more than 5000
shares, and a third. the negotiation by
our bankers Of new bond sales in foreign
markets on scale that may truly be
called enormous.
Although authoritative information on
this last named matter was not made
public to-day in Wall street, enough of
it was revealed TO exercise a striking ana
instantaneous effect upon the security
market. and it constituted. OF course, the
most important single market influence
OF the day.
The sale OF bonds include, as Il IS be-
lieved, an amount in excess Of $4,000 600
of our railway and municipal securities.
and there is substantial reason for stat
ing that other large sales are also on
the point OF being concluded. The source
Of this favorable development may be
plainly traced to the one factor to which
reference has already been made. namely
the spread Of easier money in Europe.
Market Is Strong.
Assisted. therefore, by a brisk continu-
ance OF foreign buying OF our stocks. the
stock market to-day was strong from the
start to finish. and closed at an advance,
averaging between 2 and points in the
leading issues
In response 10 the general easier work.
ing OF the money situation proper call
loan renewals here were made at ~ per
cent. and money lent continuously there
after at n lower rate until the end OF the
day The time money quotation also drop
ped a quarter Of per cent for all date.
No little interest rested upon the an
nouncement made by the directors OF the
American Tobacco Company Of a regular
dividend OF 2lz per cent and an extra
dividend Of ~ per cent for the last quar-
ter upon the company's common stock, as
against a regular dividend of 2IA per cent
and an extra dividend of per cent de-
clared for the same quarter last year.