The Washington herald., 1911-02-07
WALL STREET NEWS
Violent Break in the Price
of Cotton Options.
CROP LARGER THAN EXPECTED
Imperial Bank of Germany Reduces
Its Discount Rate and Several
Likewise-Southern Railway Shows
Increase in Gross Earnings.

New York Feb. 6.-The most interest
ing development to-day on any of the
counry's stock or commodity exchanges
was a violent break in the price OF the
speculative cotton options. In the pres
ent season the quotation for cottons has
held for i long period around II cents
a pound. In the countryS leading cotton
exchanges many large spectators were
predicting that the present seasons crop
would be less than ll.JVV.V0 bales. and
that a price of from Il to 20 cents a
pound for cotton would be touched before
the season was over. out as the days
have gone on it is apparent that not
only will the Bureau of Statistics
prophecy be fulfilled that the crop will
be in the neighborhood of l,5oo, O0O bales,
but that in all probability a 100000
bale total will be reached. AS a result
d gratifying fall in the price of cotton
options is taking place.
Reduces Discount Rate.
To-day the Imperial Bank of Germany
reduced its discount rate from per cent
to AZ per cent. and a similar lowering
of the price of funds occurred at sew
eral of the smaller European national
banks. In London the Bank of England
managed to get nearly all of the S3,J0O.0 90
of new South African gold offered for
sale there. and this induced hopes that
the Bank of Englands S discount rate
might be further reduced in the present
week.
Time money here toward the middle
of last week began to develop little more
firmness because of banking prepara-
hN
trial and railway corpora tions. Local
money rates. however, are SO low. abSo-
lutCly considered. that d somewhat
higher range therefor would not disturb
anybody and would be even welcome as
indicating business revival.
The Southern Railroad Company's
statement issued to-day shows an in
crease in gross earrings of s152.0o0 for the
four weeks of january. of $4,000 for the
month of January as a whole. and of
S.lG,Go for the present fiscal year.
Deposits Much Larger.
Attention in the financial ditrict was
very properly directed this morning TO
the fact disclosed in the bank statement
on Saturday that the deposits reported
by the banks were sl41,GonO greater
than they were on January 4. The last
named date was the one on which the
co1npliat tlonS OF bank returns was made
under the cell of the Comptroller of the
Currency Which showed an apparent de-
crease in individual deposits as compared
with November 10. 1910. OF sl9l. .0U1.u,O.
The reason of this falling off was eX
planned at the time being due to the
fact that January fell on d Saturday.
and that the volume of clearing house
exchanges on Saturday is always de-
cidedly less than other days in the week. |
,l,s.- -.
one is now abundantly proved.
The stock market itself to-day was |
a relatively unintereSting affair. 1t rose !
sharply in the morning on an accumula- |
tion of overSunday buying orders and |
declined slightly in the afternoon upon
profit taking. Upon the recession the &c
tivity of the market fell off greatly and
the state OF affairs continued from a
merely speculative point Of view as
strong as ever.