New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-18
FINANCIAL MARKET
STERLING RATES Up.
Stocks .AdUGnce an Face of
Higher Bank of Eng
land Rate.

The presence IN the market Of an over
extended short interest was responsible
for higher prices for stocks IL yester-
days operations. Transactions intended
10 compel a covering movement started
with buying for foreign account, the or
ders apparently originating on this side,
and throughout the day a certain class
of bear traders were pushed hard enough
20 induce a demand that carried the
prices OF the leading issues from 1 10 >
points above the closing In Wednesdays
market. The upward movement, how
ever. was not accompanied by outside
buying, and there was nothing In the
character 81 the business that suggested
a sustained bull speculation. Money
market conditions are developing in a
manner that does not hold out the hope
of easy rates Tor accommodation for any
length Of time. but SO Ear little atten-
uOn has been given 10 this aspect OF the
financial situation By the speculative
community. though there are some trad
ers In Wall Street who are short Of
stocks and intend 20 stay short entirely
on the argument Of expected higher
rates for money and gold exports.
In the London market the advance in
the Bank 81 Engiand's minimum rate Of
discount was reflected in contraction in
speculation and lower prices, bat at this
centre the drastic action Of the governors
Of the British institution evidently was
noted only by our lenders Of money. who
believe that spectators who are making
commitments in stocks on the theory OF
continued ease IN loan quotations are
living in "A FOOLS paradise. When the
Bank Of England advances its rate OF
discount I per cent ~ this period Of the
year Il Is time 10 exercise the greatest
caution in stock market operations FOR
higher prices. And the fact that the
advance In the rate has been made with
The percentage Of reserve To- liabilities
still above the average for this period i'm
the last ten years makes the change
especially significant Evidently the
Bank Of England Is looking forward 20
a further depletion Of its reserves
through gold shipments. and doubtless il
looks upon the current active specuia-
tiGn IN rubber and mining shares on the
London Exchange as fraught with dan
ger that should De removed by higher
quotations for money.
open market discounts M the British
capital advanced. and call money went
as high as AZ per cent. against "a maxi
mum Of 3 per cent IN New York. Ster-
Ing exchange rates here rose rapidly as
2, consequence 81 the development i'm the
London money situation. anu il was
generally admitted In local financial
circles that in view Of our adverse posi-
tion in foreign trade and the difference
an money rates between New York aud
London thc United States might soon
nnc itself compelled 10 ship gold o. Eu-
ripe ~ time when under normal con-
diilons So would be able 90 Import thc
metal " needed Stocks as rIle closed
"a ~ near the best prices 81 the day. As
compared with the total dealings in
Wednesdays market. there Was "a faliint,
N ~ more than 1850 shares. while
five stocks supplied more than three
quarters 80 TIE business. STEEL common
ard Reading leading IA point OF activity.
Lehish valley again was strong in the
Philadelphia market. and the possibility
al absolute c"ntiol of tie property bv
Tie Rock Island continued - Doe dis
clssed