New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-09-21
A SLIGHT FURRY IN MONEY
CAUSED By AN ARBITRARY ADVANCE
OF THE RATE FOR CALL LOANS

There was slight furry in money In Wall Stree.
yesterday. Il was produced by an arbitrary EFFORT
to advance the rate for cal money-that is money
loaned out 20 be returned demand. This was
the first effort in the financial district TO interfere
with natural conditions. and ii met with some re.
sentiment. Money on call had been ruling at Ia to
per cent Some Of the banks and trust com.
panles which large lenders entered into an In.
formal agreement TO make the ca-loan rate ~ per
cent and 80 informed the sock brokers and others
who were borrowing from them, where stocks and
bonds were pledged as collateral.
There had been previous warning OF this
marking up of the rate for call money and the
effect naturally dcmoralizng. The notice OF
the advance in the rate came when the stock
market booming. The boom was stopped
abruptly, not because general conditions were In
any way changed, but because borrowers were. In
50 many words, taken by the throat and told they
must pay more for the money they required.
The bank statcne Mt on Saturday showed that the
associated banks had deposits of $685. 5s.5O while
their loans amounted to s5ss3l3.,co The reserve
held against deposits was sl7s.ssi.so0 The Ma
tional banks are required 10 keep a reserve Of %
per cent and the State banks a reserve OF Is per
cent. The percentage Of the reserve shown In the
bank statement was 2Ss. or practically 30 per cent.
Roughly speaking, taking National and State
banks together. the 10 per cent
above the legal requirement. Therefore the inter-
ference with the normal Improvement In financial
affairs. oy raising the money rate. did not seem to
be warranted.
The stock brokers. rather than pay the increased
rate for money elected IN a large number Of In.
stances 10 pay Off their loans. hoping to be able to
borrow in the open market at per cent. When
they tried do they did not succeed. The sud-
den and Unexpectedly large demand for money had
the effect OF tanning the rate up TO per cent, al
though IL did not hold long at that figure. At the
close of business money Offering in large sums.
and The rate had receded 10 per cent.
Ia IA ks n
agreement to make the rate for call money per
| cent la a short time the superb bundance Of
money broke the 10 li. and later 10 per cent.
| There did no; yesterday appear TO be any great
| objection TO q rate of ga per cent, but 1t was
| thought that the rate should have been allowed to
| move up naturally. instead OF being put up arbi-
trarly 1t is probable that 81 per cent will be the
rate hereafter. and it may be higher. Should there
| be d > or per cent rate brought about by .
! legitimate demand for money there could be no
| objection. as it would be indication OF a healthy
| state OF business. The Wall Street argument IL
that things should be allowed to tai, their own
| course.
The raising Of the rate for money enforced
| tent but the liquidation was apparently ever wh,i
| the Stock Exchanse closed. some OF the net De-
G 6 IN s satSrsT Mre susa Ia
| American Tobacco. Is; Canada Southern. l. BE-
Erie irst preferred /. general Electro u, Kansas
and Texas preferred, u; Missouri paGifs l. New.
~ Omahs ~: Pacife Mail IL: Pennsy-
vsnia Railroad II. There were some gains rs. in
sticks ncadins the SoSTSing Ghts1sSW Grea
rreferred b. "a; Evansville and Terre Haute. 8;
iowa Central preferred. :; New-Haven ana HART
on the New-York Produce Exchange December
IL cents higher than Saturday. The gain IN
September wheat. wnrn closed a, ssl2 cents: was
sIto III cents There gain or three fourths or
n conf in corr An advance was recorded yester-
Isv OF IL cents ounce in silver. 10 5s's cents
far commercial bars.
Shipmcnts OF sold from Europe 10 America are
looked FOR this week The higher rates for money
Vii have one advantage. as they are calculated
70 cenress exchange rates TO the gold-importins
mint