New-York tribune., 1910-10-20
FINANCIAL MARKET
Sterling Exchange Rates Move to
Hjuher Levels.

on a reduced volume Of business as
comDared with the total transactions Of
preceding days in the current week
stock market prices moved toward a
lower level IN yesterdays operations.
The decline was based in large part on
technical speculative conditions. but it
was helped. nevertheless. by heavy sell
ing for foreign account and by further
strength in the sterling exchange mar
ket. in which demand rates again ad-
vauced under the influence Of various
factors. including sales Of stocks in this
market by European interests, hgner
discount rates in London, frmer rates IN
Berlin and Paris exchange on the Brit
ie, canital. indicating that France and
Germany expect 10 draw gold from Lon
don. fnd d demand FOR remittance in
cident 10 American obligations due on
%overnber I at foreign capitals. Pub
lie interest in the market was less N
evidence than reported in Tuesday
dealings. the larger part Of the conmls-
sion house business being on the selling
side. especially in Reading. Jnlteo
States Steel and Union Pacific Far
suDport was offered on the decline. but
there was no evidence of the confident
br-yfuc recently noted. In the afternoon
transactions We're almost entirely for the
account Of the professional element
which operated on both sides Of the mar
lza- with no disposition on the part OF
traders 10 make extended commitments
-, either direction.
Further activity was shown by New
York Central. and General Electric also
developed life. the course Of the latter
issue strengthening the belief in specu-
larfve circles OF important announce
ncnrs affecting the General Electric
n-oner--y. Wall Street has an idea that
there soon will be a melon cutting ny
the company. Bull talk was heard on
Wheeling & Lake Erie. but there was
M n1b1fc response to the TumOrs that
The company would he acquired by the
New York Central through purchase ny
the latter company Of the WABASH
rpi-reb11rr Terminal. which owns ma
iori-v Of the Wheeling q Lake Erie
stock Wall Street has mapped out
bje development scheme for the Ne"
York Central. but as usual the plan s
+oo ambitious for the consideration OF
the conservative New York Centrai
-,s,srenoenr. The Vanderbilt lines,
l,ov5e-er are bound 70 expand along
money making lines While the general
market rallied with some vigor IN the
I late afternoon stocks were well sup
plied on the advance. and IN most shares
/ the closing was heavy.
The Rank Of Englands recent advance
| e.. its discount rate 70 4 per cent has not
/ teer effective in checking Withdrawals
I If oold from the institution, and It
therefore is not unlikely that a further
I i,1.rease in the rate viii be made al the
weekly meeting OF the governors to
dsy or = week hence. Cable dispatches
sfata that SO far in the current week
/ the hank has lost upward Of tlHpNb
sold taken for the account Of India,
y-i,l, the uroba bility Of additional ship
n,ents IN the immediate future. and IN
view of the advancing tendency Of
sterling exchange IN the local market II
is thought that London may make an
. effort 10 attract some of the precious
metal from this side of the ocean IN or
der TO offset exports 70 other countries
our own banks are in no position 10
stand the strain Of gold exports and a
bie buU market in stocks. but specuia-
/ tors appear 10 be counting upon the Is
! suanCe OF emergency currency TO carry
along their operations. The needs OF
the business community AT the present
! time do not call for an increase in bank
note circulation in the form of emer-
/ rencv currency. and the fact that as II
now stands the emergency currency law
/ Is an expensive method OF obtaining re-
discounts. which are easily and cheaply
1 accorded 10 banks in foreign countries
/ through a central banking system, does
/ not encourage the idea that the cur
rencv associations that have been