The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-11-05
RATES FOR MONEY DROP.
MAGICAL EFFECT OF THE ELEC-
TON ON THE MARKETS.

Must Pay for Its Safe Deposit-Lnrgcst
Dealings on the stock Exchange since
tho Venezuelan Panic-Fnl In Silver.
The election of the eound-m money Presidential
candidate changed the complexion of all the
financial markets. The effect was pronounced
and sensational on the floor of the Stock Ex-
change, but the most important changes were
in the foreign exchange and in the money mar
kets. The rates for money on call. which for
several days up to the close of business
on Monday had ruled at OIL per cent.
per annum, promptly dropped TO @ per
cent. and toward the close OF business
to 3ls14. per cent. The time money market,
which for a few weeks before the election had
been almost nominal. owing to the indisposition
of lenders to place their money out of their con-
troll for more than twenty-four hours at q time.
was quoted at @ per cent. for all periods; but
there was very little doing. The relaxation OF
the tension was most gratifying, both to lenders
and borrowers, in the market for commercial
paper.
There has been next to nothing aoing in that
branch of the money market for n long time.
Manufacturers and merchauts nave not re-
Quired extensive accommodations. Ior the rea-
son that they have not been transacting much
business or making extensive commitments for
the future. On the other hand, buyers have vir-
tually been out of the market. Yesterday banks
and other buyers of commercial paper at once
absorbed practically all Of the prime endorsed
bills receivable in the market at 6 per cent, and
less desirable grades could be disposed OF at z
per cent. or q little higher rates. All OF tho
usual buyers OF commercial paper are in the
market again. and the indications are that
unless the supply increases materially in the
near future rates will suffer because of the
competition for desirable names.
The posted rates for sterling exchange were
promptly dropped a cent a pound at the begin
ming of business. But that concession did not
accurately mark the decline that actually took
place: which was two cents a pound for short
bills from the rate ut the close of business on
offsTad at 81 a 4.s5h IN f fhs d asS iisn was s,s ane Pa Tfs
10 the desire OF those who bought exchange on
of their bills. A t the close of business short ex-
change change rallied "a hall : cent q pc ana IRON the
The people who have been boarding gold. par
s%oan1s fr saS' the T sSb.r f"a Mtyh or parcs s%sti
the coin at a premium from bullion dealers ns:
w wsE n G'F fg %n'h The en- s ss'd' BACK se !is DEALERS Tss GT
deposit it in the Sub,Treasury. They were met
by the frat named with the very disappointing
premium on gold; while tho sub-Trea:,
Sry re fuse, ! to ,cd receive , the ., coin sOl II
tenders for 1t. but 1t appears that the work OF
certain branches allowed to accumulate during
the last week or ten days by the demands made
upon the clerical force to pay PIT gold in eI;
work of the ofice has been done gold will not be
received Some Of the Eold that has been
and some Of j in the ordinary banks Of deposit,
AS the gold that has been boarded is being
taken care of at the risk of the owners. and in
the oases Of large. amounts is causing the own
ers a good deal OF expense to provide facilities
in safe deposit vaults for Its safekeeplng. to say
nothing OF the loss OF interest on the money,
the chances are that all Of the forty or fifty
millions that have been withdrawn from cir
c~ulation will ind their way into the banks or
the Treasury in the near future; Resarding
ing to note that the Treasury. will not
issue gold oertihcatss for the coin: When
900, 900 the DepGrtment was prevented By law
from issuing gold, certificates against gold coin
risen above SloO, 900, 900 the Treasury has not
resumed the practice Of issuing certihcaies, nor.
operation. and it is OPTIONAL with the
are that the bulk Of The boarded gold viii lind
its way into the banks as ordinary deposits.
This will strengthen the position OF the banks
and enable them to turn gold into the Treasury.
should an emergency arise, as they have always
Another effect of the election was a drop in
the price Of silver. Silver bullion certificates,
621a cents an ounce, as against U5 cents at the
close on Monday. There was a subsequent re-
market FOR bar silver Was also affected ad-
versely; That a foreign demand for silver at
the decline still exists is shown by the export to
Europe to-day OF 474. 600 ounces. On the other
hand, gold is still coming this way, the steamer
100000. This is undoub,edIy part of the cold
sold last week to be delivered when received
The purchasers of calls on gold during the
last month or So endeavored Yesterday to realize
sSs1 mo more et demand mar for .t hESse caiis than there here
was for the gold that had been purchased. AS
a mater ter Of I fact; a all oft of the C. money on shns has has been been
lost by the purchasers and mas been made by the
cDm ms raj iyply small nnpnnfH he last have dis
bursed either to Import the gold or to protect
Tie stock market revived recolleotions of
1879. The number of shares dealt in was the
largest since the day of the Venezuelan panic
last December. when nearly 100000 shares
were dealt in. Yesterdays transactions footed
up 543.6oos shares, and the dealings, in bonds
many years since walif street has seen ssash
s sI0e excited ,Ss pGpenIlHG p on a Of rising i:ao m" a r
ta,noda that DISTINCTION because OF tho
market. The expectation was general that
should Mckinley be elected, and particularly
Instantly and materially. This expectation was
fulfilled. In half q dozen OF the more active
price. for when the Chairman's gavel fell at 10
o'clock transactions were made simultaneously
cent, apart, The widest range was u Sugar
Refining, first sales Of which were at l2l@125.
ateIy after the opening was around 122. The
same thing occurred on n smaller scale In all
In the late trading, Sugar Refining closed at
1oll6, showing q net advance for the day OF "a
q cent. In other stocks similar records were
made, as will be seen in full by reference to
the detailed account of the stock market on an
other page of THE sun.
Yesterdays operations In securities, both here
and In London. demonstrated the increasing
independence OF the New York market for
American railway securities. On Tuesday tho
London market for American railway shares
was depressed by fears that Bryan might be
elected. Orders for not more than forty or nifty
thousand shares Of stock. that were ro-
celved by, the brokers who opened tenn
porary offices up town on election night
for execution In London at the opening
yesterday morning. appear to have. controlled
that market absolutely. The execution of those
orders, together with the London buying that
they stimulated, lifted that market one to five
points above the closing here on Monday. Those
advances obviously set the pace for this market
when 1t opened. london did comparatively lit
tie here yesterday, and WAS apparently more
inclined to take profits than to make new ven
lures. II may be noted that some of the eager
buyers OF stocks In London who gave their