New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-02
Stock Exchange Prices Benefi-
ciaIIy Affected by Increase
in Bank Rate.
HESITATION IN AMERICANS
v.rmont Election To- morrow a
Factor, and Panama Canal
Situation Not Considered
Element of Strength.
Bv Cable TO The Tribune.l

landau. Sept. lon the whole the
,,ock market displayed good tone
,,s, week. The advance in the bank
RAT. tended TO give firmness 10 prices
nv relieving uncertainty as to the i'm
,od,ste future, at least. though fur
.h.r advance is not at all improbable.
IN, on the contrary, rather expected.
.s all evidences point to a heavy de-
,oond for money from all quarters.
Americans held their position. ewing
80 tho general expansion Of business in
+hs United states and the excellent
transatlantic crop reports, which mean
80, only business for the railroads but
General prosperity and ability TO alb
o-b in the homo market much Of the
now offerings of securities which the
o,ans for trade expansion. new enter
n,ises and the development OF those
,lreadv existing will call forth.
London is hesitating somewhat over
Americans until the result of The Yer
mont elSNllOll &c hhNN''s Ss ~ - NS''S'N
cred that if Colonel Roosevelt should
no successful the effect viii be felt IN
Wall Street.
The Panama Canal situation also vs.
not conducive TO enthusiasm over
American securities. England's present
feeling is chiefly one of disgust. to-
rcther with the belief that the matter
will be amicably and properly settled
after the election. Nevertheless, there
Is an underlying fear Of the possible
itv that the present course Of America
will he persisted i'm aud that. Of course.
could only result in 2 general feeling
of antagonism TO America and Ameri-
can enterprises and distrust of Amerl-
can good faith where dollars are con
cerned.
The advance in the bank rate 10 !
nor cent was a matter Of prccaution, as
the position of the bank is not only
strong but considerably improved.
Last weeks addition Of S4.430.0CO 10
the reserve brings the total TO $3.50
Go0. While the stock OF gold has in
creased S4.125,O0O. TO S20S, $4,000.
The proportion of reserve TO liabilities
is now $40.
The advance in the bank rate was
primarily due 10 the increased compe-
tition for gold from New York and the
Continent A good many American
bills appeared In the market this week,
and it is believed that New York will
he an active bidder for money and
gold here soon on account OF the need
for currency 10 move the great crops
and owing 20 the reduction which re-
Gently occurred in the reserves Of the
New York banks.
Germany also is expected soon to be
in the market TO large extent. Con-
siderable sums have already been Dor
rowcd here by Berlin. and additional
shipments Of gold are expected before
the end OF September Egypt is an
other place likely to call for large
amounts. estimates ranging from s25,-
100000 to $4,000. OOO.
India this year has been buying sill
yer instead Of gold. but there will un-
doubtedly be a South American de-
msnd also to be supplied. In fact, al
most the entire world is in such
generally prosperous condition and re-
ports show plans afoot everywhere for
trade expansion developments and for
now enterprises of such magnitude that
Il is practically certain a large demand
tor gold will be made from all quar-
tors. II must be remembered. however.
that large quantity Of gold comes TO
hand each week from the mining coun-
tries and that vast stores are held in
many places which can be utilized II
the need arises.
Altogether. while it is extremely
probable that there will be further
advance in the bank rate before long,
The present advance must be chiefly
taken as warning and as care for
the future