The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-01-30
SECURITIES ABROAD
ARE ENJOYING BOON
IL Wall STREET. SUBSTANTIAL
NET DECLINES SHOW
ron THE DAY.
DISCOUNT RATES DROP
SUDDEN WORLDWIDE RELAXATION
IN MONEY FEATUREs--RAII,-
ROADS FIT REACTION
AIRY MOOD.
DISCOUNT RATES DROP

NEW YORK, Jan. ga curious
and yet far from surprising Coinci-
teace occurred today between the i'm
n aextve evidence OF the sudden world
" de relaxation IN money and unmfs
ta 6ahle weakness, that Wall street
stock market securities abroad were
81 rong London enjoying a veritable
boom with consols making the aston
Is hing advance OF more than Il point
In addition to the large recovery that
rad already taken place this month.
These manifestations of European
investment and speculative enthusiasm
were a response to the further reduc-
ssen In the Bank Of England's discount
rate of per cent. drop of l per cent
and the third lowering since the open
Ing OF the year and to the even more
significant even II less extensive re-
duction IN the Paris bank rate from
4 TO 3 IL per cent
The genuineness OF foreign encour-
agement derived from the aspects of
money was testified TO by another
large buying movement conducted in
the Wall Street stock market for
Foreign account So far as immediate
Indications go II would appear that
absorption of American securities by
Europe is order for the holdings of
our stocks and bonds abroad have
been in a reduced state for more than
year which Is not at all normal
condition.
In the afternoon after international
dealings had been practically suspend
81 quoted values gave way all along
the line and the close was weak in
tone, with substantial net declines
showing for the day in many leading
sssuee and even more important
losses In specialties.
Rumley Attracts Attention.
The unfortunate Rumley issues
again attracted attention in the
speciality class. their collapse being
ascrihed to the adjustment Of the
company's finances which has once
more become necessary. Reading was
especially influential In promoting the
general receding movement which was
further accelerated by the way In
which T.. s. Steel yielded to pressure.
1t was nantes, that the technical
position of the market Rad been inn
paired and that as seemed to be In
Dictated several days ago It's ahsorptive
capacity had been overtaxed by the
weight OF realizing.
That quoted values declined here
while advancing abroad on such day
suggested the peculiar complication OF
the outlook for domestic values with
all the factors Of vast political change
In the lines OF American business eff
fort in the field where real values are
created
The railroad statements of the day
also fitted the reactionary mood of the
market. the st. Paul coming along
with an exhibit of $s9s 600 decrease in
gross earnings, net earnings decreas-
ing $4,000
Money Rates Lower.
More cheerful matters were be-
tokened by the dominant factors OF
today, the topping of foreign bank
rates and by the vigor of the invest
ment appetite shown in the foreign
and domestic markets for new securi-
ties. The London bank rate is now
back where II was a. the end OF
August, 1912. when II was abruptly
raised to four per cent on the eve OF
the outbreak in the Balkans,
The Bank of France had until to-
day maintained the abnormally high
rate of 4 per cent since October al
1912, and Il is rather clear in view oil
the perplexing problem OF reconcilins
needs of the new financing with the
French investors present disrelish OF
French national politics.
What change has come over the
investment situation as result of the
turn In money Is shown by the an
nouncement that the xS9.Hoo,0o0 81
PFassiaH- treasury warrants offered tt
the public yesterday were about ter
times oversubscribed.
The money market here reflected
foreign events in a sortcning of quota.
tons for time funds. Foreign ex'
change held around 1850 Tor demand
sterling. but Paris and Berlin ex-
changes here were strong.
There is talk that Paris will draw
some gold from London, but 1t is be
fieved that the American export oil
gold to France will continue.
The home market for new securi'
ties was as gratifying as European
reports.
An offering Of $4,000 900 of Lehigt
Coal and Navigation on 1-2 per cent
bonds made this morning. at 81 "a
was more than four times oversub-
scribed and at the end of the day the
bonds were quoted at 90 So.
In the late afternoon ii was an
nounced that the 81. Paul railway had
sold $40. 600. 900 more of Its general
i-2 per cent bonds to Kuhn Loeb
f. Co. and the National Clty Bank.