The sun., 1913-10-28
FINANCIAL NEWS
And COMMENT
Further Display Of Strength in.
stocks on Moderate
Trading.
BERLIN DISCOUNT DOWN
Bana Of Germany Cuts Its Rate
for the First Time
in Year.

were furnished for a more hopeful tone
IN Wall Street sentiment at the outset
Of the new week and for n further
display Of strength IN the stock market
There we're no unfsyorable develop
ments over Sunday. especially in respec.
to the Mexican situation. although It
respect to Mexican relations was any
clearer than 1t had been before the hold
ing Of Sundays farcical election. The
financial community was not exactly
pleased by the notable differences of
opinion developed over the latest turn IN
the movement for new currency lcgis-
latiofi. and the controversy precipitated
by the suggestion Tor a central bank.
which had been invited ny members Of
the Senate Currency Committee. seemed
to cloud the prospect which was APP
parently clearing week ago. Never
theless evidence was lacking that any
insurmountable impeachment had been Of
fered TO the progress NJ work at wash
ington TO frame and PASS a sound cur
rency law at an early date
In the category of positive influences
there was nothing to compare with the
reduction from 6 per cent to 5i7 per
cent. in the Imperial Bank Of Germany ;
discount rate. This was the first open
token vouchsafed In a long while Of 4
substantial betterment In the monetary
conditions all over the world, n sign
made all the more encouraging by the
fact that one Of the most difficult points
Of strain IN the past year had been
Berlin.
There was not much activity in stocks
but In a quiet way, and probably in re.
sponse to professional purchases. chiefly
hut none the less Significantly. the mar
ket hardened steadily and closed with al
extensive array of material gains Tira,
prices were only little below the hest
as a result of some late pressure whicl,
presumably represented traders profit
taking Reports current during the dav
10 the effect that the Phelps. Dodge
interests in the Rock Island properties
had increased had some effect on tho
tendencies of the dealings. The stronge'
tone Of Rock island securities in tn. last
few days had denoted The possibility ~
some satisfactory disclosures. Relief Il,
another direction was afforded hy the
conclusion Of arrangements TO provide
for the payment Of the interest due rex'
month on the St. Louis and San Fran
cisco IS.
To what extent all the various matters
| referred 10 entered into the transactions II
stocks Is dehatable hut It WAS manifest tina
IN any important quarter and prices ros'
quite easily OH limited purchases. Leader
ship was az usual exercised hy Reading
linton Pacific. United States steel anc
| Amalgamated Copper. hut the action n
| the whole market was witness VI posi-
| ton of technical strength. although care
| full observers were indisp"sed to c"nclud
that impairment would fail 10 he th" con
| sequence of any efforts to seek buyers 70
real stocks.
| Canadian Pacific showed strength enouEl
! to warrant the Inference that u was re
| hecting the lower official discount rate II
| Berlin. where there is always an EXTENSIVE
interest in Canadian Fac'1c shares At IN
| same time the foreign financial market
| were curiously unresponsive 20 the Ran'
| Of Germany's action. There was no weak
ness in London or on the Continent. bu
firmness was not striking enough to b
traced to the advertisement of a more com
| Portable money position in Germany
| Until Yesterday the Berlin bank rate ha
been per cent. since November IA last
and 81, per cent. does not denote especia
ease. II does point in more hopeful
financial direction and from now on tn
inclination of observers will he to loo
for further indications Of the same sort
although Il Is possible that there will h
| nothing until after enc internal loar
which II is understood will be undertake
In Paris early next month.
Europe may In the course OF another da
or 30 reflect more enthusiastically III
signs OF change at Berlin. but 1t is III
policy OF European finance to discour
the future very slowly nowadaye afts
the disappointmcnts of the last year. TT
lower Berlin bank rates on the one han
proves the official desire to encouraG
German industry, but 1t Is also proof
the extent to which economic reaction
Germany has lcssened demands on Il
money market. 1t will he Of special cor
sequence now to note the Bank of Ens
lands attitude toward efforts to obta
gold In London for shipment 10 o,h'
countries.
while ago. when Germany was sti
In the market for gold something like
warning was given that the Bank
England would place obstacles in II
way OF attempts to draw gold here.
would not be surprising now II some go
imports were promptly arranged and an,
thing Of the sort would test quite tho'
J oughly the real foreign money situatc
and show whether or not il is really in
proving Foreign exchange here held ycl
terday at the recent low level and the
was a symptom of hardening IN call mone
both Of which features implied some lik,
lihood OF attempts to take gold fro
London.
There was a striking rally in the gra