New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-27
FINANCIAL MARKET
Sterling Rates Up in Response to
Higher Foreign Discounts.

Stock market prices were strong
throughout the best part Of the five
hours Of trading. net gains being shown
in all but q few issues. The upward
movement was not accompanied by
a marked expansion in the volume OF
trading as compared with the daily tc-
tails recorded last week. and although
efforts were made TO attract an outside
demand commission houses were unable
70 report a change on the part OF the
public's attitude, which for weeks has
been distinctly against commitments on
the long side Of speculation Bull move
nents on the Stock Exchange are not
started ny the public, and when Wall
Street makes up its mind that the time
is ripe for the development Of an aggres-
sive bull campaign il will go ahead with
the usual surety that outsiders will be
ready to buy when it is ready to sell.
History always repeats itself IN the
speculative markets. The advance yes
terday. however, had none Of the ear
marks OF the beginning Of a sustained
advance. Most stocks are cheap al pre-
vailing levels. but this is no indication
that they viii not be cheaper.
The announcement that the Union Pa
cifc had placed a small amount Of bonds
il London was something Of an influence
In inducing covering Of shorts in yester-
days operations. but the manipulation in
Reading. IN the course OF which the
stock showed q maximum gain Of more
shan points, appeared TO exert
greater influence on traders opinions re
garding the immediate tendency Of
speculation a firmer market for call
money and strength in sterling exchange,
together with lower bank reserves here
and a sharp advance in the Bank Of
Cermanvs discount rate. received little
attention in local speculative quarters.
Wall Street sentiment was favorably i'm
pressed with the announcement that
railroad labor unions would join the
cornpanies in their fight for higher trans
portatiCn freight charges. but among
spectators the familiar reports Of
melon in Reading was a greater in
certfve for the purchase OF stocks for
turn. Reading moves UP several times
a year on rumors Of a big extra dis
bursement TO its holders.
While rates for money at this centre
are easy. local bank conditions are not
as satisfactory as they We're a month
ago owing TO a large decline in reserves
/ and a heavy increase in loans the latter
( item having expanded more than 500
/ 100000 since the middle Of August and
/ being practically as heavy as deposits
! Transfer Of interior loans 10 our banks
and syndicate operations are largely re
! sponsible for the increase in credits. as
( there has been nothing in the stock
/ market for many weeks that has exerted
any pressure upon the loan item. a re
/ Election Of which is found in the low
rates for call funds and lending by com
/ mission houses OF idle balances. The
! reserve Of the Clearing House institu
/ tons. as shown in Saturdays statement,
stands at ST.. $4,000, compared with
I 500. 600. the high level Of the year.
recorded on August Is. and from current
/ indications there viii be a further drop
this week. owing 70 cash losses on opera
lions with the federal government and
the interior Since Friday night the
banks have lost more than $500 900
with the Sub-Treasury-
The outlook is beginning 20 favor
higher loan quotations at home and
abroad. and il is interesting to note that
the imperial Bank Of Germany has al
vanced its discount rate from ! 10
Ter cent. q movement not unusual at this
season OF the year. Berlin has been
shifting the continental demand for gold
70 Iondon's open market, where most OF
the recent South African receipts Of the
metal have been taken for foreign ac-
count In view OF the approaching Oc-
rober settlements abroad. II is possible
thar the Bank Of England will increase
its minimum rate OF discount this week
while il also is probable that the ar
rangements for interest ard dividend
payments in this country which Will
approximate S1700O00o1 uiIl result in
z frmer tone in loan quotations here.
British consols made new low record
yesterday.