The Birmingham age-herald., 1910-03-18
ADVANCE MADE IN
 STOCK MARKET Upturn Is Partly Due to an
 Oversold Market FOREIGN MONEY HIGH
Advance of One Per Cent in Hank oi EugIand's Rate Is Surprising but Does Not Tend to Unsetfie
 Prices in Our Markets

New York, March 1.-The financial event of the day was the advance py a full 1 per cent to per cent In the or ficial discount rate of the Bank of Eng land. The usual gradation by which changes are made in the bank rate IS one half of 1 per cent, and the full figure IS an indication of an emergency measure.
 The news that the government of India had bought s5OO000 of South African gold, to arrive in London on Monday next, while the consignment is still at sea, points to one of the most urgent demands on the Bank of England gold supply. This expansion in India forms the basis for enlarged gold requirements. Financial London also is in fear of complication growing out of the deferred collection or taxes owing to the failure to pass the budget. which has led to large accumula- tions of banking deposits in preparation for paying the taxes and to consequent factitious plenty of money which was en- couraging the gold outgo. The advances made by the Paris money market to Lon don last fall to relieve the stringency were being withdrawn, although the SUD- plies of money in Paris are redundent and the rate will be expected to hold the Paris supplies in London. Preparations for the coming government financing of- fers an additional motive. There is sus- pected also a purpose to curb the un- bridled speculative spirit rampant in Lon don.
 The special interest of the New York market in the English banks account lies probably on the placing of bond issues with foreign subscribers. A large pro- portion of recent bond issues of the large railroad systems have found ready ac- ceptance with foreign subscribers. The special importance of this foreign invest ment grows out of this country's indebt- edness abroad on other accounts. Reliance has been placed on still further sub scriptions by foreigners, especially to the New York city bond issue to be sold next month The merchandise import excess situation in February, and the almost pro- hibitive export prices at which cotton and wheat are ruling, make this placing of our bonds abroad important to provide means of investment for our foreign creditors.
 The Bank of Englands action, it is feared, may interrupt this process and draw gold from New YOrk. Sharp ngntS check the progress of financing of domes- tic requirements and react unfavorably upon the business and industrial situa- tion. The stock market showed little sign of perturbation over this prospect. The period of unsettlement was short. The subsequent advance in prices was due in part to the oversold condition of the mar ket, which had grown up in the last two days decline. Discussion of the labor situation almost disappeared Much was heard on the contrary of the processes of argument from which could be deduced the conviction in the speculative mind that the supreme court Monday next would hand down decision in the Amer ican Tobacco case; that the decision had been already written and that it would be in favor of the defendant corporation.
 In order to buttress this confidence there were published elaborate opinions from learned legal sources to demonstrate how a decision adverse to the corporation would leave room still for adjustment to the new condition with prosperous activ- ity uninterrupted.
 Further reports of crop damage were centralized by Price Currents views that the possibilities are for large crop. even conceding large reduction of the Kansas l wheat yield. A report of the large cargo movement over the New York Central | was taken to indicate the strength of the railroad situation.
 Bonds did not share in the strength of stocks. The tone was irregular. Total sales, par value, $2.315.000. United States 3s declined 4 per cent on call.