Norwich bulletin., 1910-03-18
FINANCIAL AND COMMERCIAL,
AN EMERGENCY MEASURE. Bank of England Discount Rate Ad. vanced-Stock Prices Here Higher.

| New York, March 1.-The financial 1 event of the day was the advance by g 1 full one per cent. to four per cent. in | the official discount rate of the Bank l of England. The usual graduation by 1 which changes are made in the bank 1 rate is one-half of one per cent, and i the full figure is an indication of an | emergency measure
 1 The news that the government of India had bought s50o,O00 of South African gold to arrive in London on 1 Monday next while the consignment is still at sea points to one of the most urgent demands on the Bank of Eng i land gold supply. Trade expansion in India forms the basis for enlarged gold l requirements. There is suspected, also, a purpose to curb the unbridled spec uiative spirit rampant in London. The special interest of the New York ] market in the English banks action lies in it's probable effect on the plac- ing of bond issues with foreign sub scrfbers. A large proportion of recent railroad bond issues of the large rail- road systems have found ready accept ance with foreign subscribers. The special importance Of this foreign in vestment grows out Of this country's s indebtedness abroad on other accounts. Reliance has been placed on still fur
 ther subscriptions by foreigners, espe-
 cfally to the New York city bond issue
 to be sold next Monday. The mer-
 chandise import excess valuation in
 February and the almost prohibitive
 export prices at Nnlcn cotton ana
 wheat are ruling make this placing Of
 our bonds abroad important to pro-
 vide means of investment for our for
 eign creditors. The Bank of England's
 action. it is feared, may interrupt this
 process and draw gold from New York
 Such a result might check the progress
 of financing of domestic requirements
 and react unfavorably on the business
 and industrial situation.
 The stock market showed little sign of perturbation over this prospect. The
 opening period of unsettlement was short. The subsequent advance in prices was due in part to the oyersold conditions of the market which had Discussion of the labor situation al-
 most disappeared. Much was heard, on the contrary, of the processes Of argument by which could be deduced the conviction in the speculative mind that the supreme court on Monday next would hand down decision in the American Tobacco case; that the decision had been already written, and that 1t would be in favor of the de- fendant corporation. Tn order to but tress this confidence there were pub- lished 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 activity uninterrupted.
 Further reports of crop damage were S somewhat centralized by the Price Currents view that the possibilities are for a large crOp,' even concedinf, large reduction of the Kansas wheat yield. 4 report of the large car move ment over the New York Central was taken to indicate the strength of tho situation.
 Bonds did not share in the strength of stocks The tone was irregular. To States threes declined one-quarter per cent. on call