Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-07-13
ACTIVE DEMAND
FOR PENNSYLVANIA
Bank Of England Rate Reduce
tion a Periodical Surprise
Of Money Market
with the exception Of the continued

With the exception Of the continued
active demand for Pennsylvania Rail-
road, trading in the local market wore
all the characteristics Of mid summer
dullncss. The bulk of the dealings
In the local shares was made up of
small cd dlots. Price variations, in
consequence, were of little interest and
| importance. n the whole, however. de-
spite the lassitude of the list the tone
remained decidedly strong. The apathy
of the trading in the local list at the
same time was In measure partly off.
set by the broader operations in the
New York stocks. Many of the local
brokers have found this business profit.
able, and the officials are making every
effort to widen these operation
In Pennsylvania Railroad there was
persistent demand for the stock at AN.
The steady absorption of all offerings
around this quotation for some days
past has attracted widespread atten-
ton, and in better informed circles is
generally considered a percusor of
substantial forward movement in stock
when the railroad strike situation clears
up.
About the only noteworthy movement
in the balance of the list was the with
drawal Of selling pressure against =.
Il. II. and the moderate rally in that
stock to 32B. Union Traction con.
tinucs to be picked up at 40. Amer.
lean Stores on few limited transac-
tions in 2-point rally retrieved much
Of the loss sustained in the recent scs-
sions. Philadelphia Electric issues and
Z. G. i. shares continued dull. y.
G. !. shaded to SO, but the others were
unchanged. The market was narrow
for some of the inactive stocks Amer
lean Railways lost a point, declining to
1s. Penn Central Light preferred was
Coal was off y while Cramps rallied )
points, to 80.
The outstanding development Of the
day from n strictly financial viewpoint
was the announcement Of the further
reduction in the Bank of England
minimum discount rate from 315 to 3
per cent. the lowest rate since Janu-
ary 20, 1914. The rate was reduced
from to 3R per cent on June IS. The
action of the governors Of the English
institution thereby furnished another
Of the periodical surprises which the
Old Lady of Thrcadncedle Street has
given the money market during the last
seven months.
IL was anticipated Wncn the tedcral
Reserve Bank rate in the United States
was lowered the English bank would
do likewise. but hope for this vanished
with the tightening conditions in the
money market and the collapse of mark
exchange. as we'll as heavy borrowings
by the Government from the Bank of
England.
The Government has since repaid
virtually all this indebtedness, and as
the foreign exchange situation Is ad-
mittedly less strained, the bank has
given traders further help by taking
one half Of one per cent from the mini
mum. The reduction also is expected
to stimulate the buying of Government
securities on the London Stock Ex-
change.
Lowering of the rediscount rate
came as surprise to local bankers,
who believe that the New York Fed.
eral Reserve Bank will soon cut its
present rate Of per cent.
Shortly after the London bank low
cred Its rate from 4 to 3H per cent
on June Is the New York Reserve Bank |
cut its rate from Az to 4 per cent
and several other reserve banks |
throughout the country followed suit.
Within the last few weeks rediscount.
ing operations within the Federal Re.
serve system have expanded about 49,.
600. 900. a large part of which has
taken place In the New York Reserve
Bank.