New-York tribune., 1896-10-31
END OF THE SQUEEZE.
CALL MONEY OFFERING AT 6 PER CENT
FLAT.
ENTHUSIASTIC SCENE ON THE STOCK Exc1, ANON
WHEN THAT RATE WAS ANNoUNCED-A
SYNDICATE OF BANKS TO LOOK

AFTER THE MONEY MARKET
The squeeze in call money came to an end
Yesterday. The opening rate was 30 per cent
Soon after the rate was advanced to GO per
cont Then money was offered in unlimited
amounts for use until Monday at per cent
and commission Of one-fourth OF per cent,
which made the rate equal to 36 per cent per
annum At 2:3O o'clock the Central Trust
company offered S1.OOO.OOO at 6 per cent with
ont commission. The money was quickly
taken after which the rate ascended to 80
At the close. however. there was an abundance
of money offering at per cent fiat; that is,
without commission.
The end Of the disturbance A ,roney was
foreshadowed ~ the following statement. made
early in the day by J. Edward Simmons. presi-
dent Of the Fourth National Bank. who is presi-
dent of the Clearing House Association:
There is nothing in the situation that should
excite alarm The banks are abundantly able
10 meet whatever emergency may arise, and
they will do So"
II turned out that syndicate had been
formed by sixteen banks to take Of the
money market until after election The banks
in the syndicate are the City Hanover. First.
Second Third and Fourth National. Gaatin.
Republic. Importers and Traders. Manhattan.
Merchants. Chase. Corn Exchange. American
Exchange Bank Of Commerce and Bank OF
New-York.
The syndicate Of banks agreed to supply
s10000000. and 1t was the syndicate's money
which loaned at per cent and COM
mission Of one-fourth OF l per cent. AS nearly
AZ could be learned, H. p. rockingham. who
acted for the syndicate. loaned about $300000o
NJ its money When the Central Trust Com
Nof
tbe bankers on the Stock Exchange gave three
cheers for Frederic P. Oloott. the president of
the company after which. under the leadership
OF Fred s. Flower. the brokers sang MY
Country 'Tis of Thee" and number Of other
pa,riotic songs 1t was one Of the most en-
thusiastic scenes ever witnessed on the Ex
change.
After the close Of business. President Sim
mons speaking of the high rate for call money
attained on Thursday. said
There was large house or in short. any
house of good credit, which did not yester-
day succeed In getting whatever money was
required to enable it to meet it's engagements
The fact that there was no distress was shown
by the total absence Of transactions In cash
stock in the stock market. In the past II has
been almost invariably the case that when
stock house was unable to procure money 1t
sod STOCK Tor cash. ana IN tnS way P"'u ''i
its loans"
Frederick D. Tappen. president of the Gallatn
National Bank. who is chairman OF the clearing
House Loan Committee. said:
The banks do not care for the high rate OBJ
tanned for loans made by the syndicate. Inc
only desire is to depress interest to the legal
rate-6 per cent. To do this ii was necessary TO
loan at the bid rates..
There will be no money market to-day. be-
cause no deliveries Of stocks are made on Satur-
day There will be trouble in the money
market Monday. because the bank syndicate
will supply all the funds asked for The bank
statement to be issued to-day VIII naturally ne
an unfavorable one. At the same time il Will
probably show that in the aggregate the asso-
ciated banks hold in their reserves S13.0OO.W0
IN excess of the legal requirements Several in
dividual banks will report surpluses below the
% per cent. or legal limit.
The Withdrawals of gold from The New- York
Sub-Treasury yesterday were S90O0N Of this
100000 was withdrawn by bank for
customer
The Importers and Traders National Bank
yesterday withdrew 81 100000 in gold from the
Clearing House vaults 10 meet bond payments
vaults accordingly reduced to SCI 100000
Transfers Of currency through the Sub-Treas-
ury 10 the interior were $4,000.
The bullion dealers reported an enormous de-
nand for gold. They advanced the premium on
cash gold from one-fourth to one-haf and i'm
some instances 10 three-Quarters of | per cent
Thirty day calls We're advanced 10 IL per cent
and calls good for the remainder of the year
to ~ per cent.
The stock market was extremely strong all
day.
London Oct 30-Bullion TO the amount Of
100 900 was withdrawn from the Bank Of Eng
land to-day for shipment to the United States