The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-09-13
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the fhUoa lot money on call IEOD hu hNcE'
age OF less than one-third the lega
rate TO a maximum OF two-thlrds OF that rate
has. fortunately for tho stability Of tho stock
ndurket. frightened a good many unreasoninR
and reckless speculators into selling theiI
stocks, Tho decline in prices has also been
accelerated by brokers with small capita
who encouraged purchases as long as money
was obtainable at IL and 2 q cent. but
who are unable to secure liberal accommoda-
lions as soon as lenders begin to discriminate
against some OF the collateral offered them
In some cases inability to borrow money
on call at 2 y cent, while charging
their customers @ = cent. influenced many
brokers in advising their customers rs to tho
best course to pursue. The circumstance
outlined above are moro largely responsible for
the setback In prices than tho higher rates for
money or the possibility that the market may
become absolutely stringent.
As u matter OF fact there Is very httle pros
pect OF n really active market for money. In
come circumstance the decrease in the surplus
reserve OF the banks TO about $7.000.000 might
properly be regarded with apprehension.
The banks themselves are not dis
turbed. because the officers OF the
larger institutions know that the con-
dition which has disturbed the Stock Exchange
contingent is very largely local and IS not likely
to last long. Money at this centre is fairly
active because the greater part Of the new Gov
eminent loan Is being financed here.
Dealers who have accumulated round
amounts of the last Government loan INSERT
thai they have sold the greater part Of their
holdings. They have been compelled to turn
the purchase price of the bonds into the Sub
Treasury. but have not yet received payment
from the investor or final purchaser. 1t is OBJ
vious. therefore. that a good deal Of money
O.. &iol M inoijantal 20 tha dootipn ~ fba
new Government loan other than that which
has been paid into the Treasury. Guarantees
against n really active money market are
found in the condition OF the exchange mar
kot. in the low rates for money abroad and
in the plethora of unemployed money in
this country. That the United States Is
richer thar ever before is shown by the
fact that some of the Western banks are
lending money on wheat at 3 y cent. while
others are sending their unemployed funds to
this centre in expectation Of obtaining q
higher rate. Rates OF interest on the
Pacific coast are the lowest ever record
ed there. The Chicago banks advise their
correspondents here that they are sending very
little currency to the country and that they
believe the great staple crop-growing sections
will require very little assistance this year in
moving the crops.
Boston bankers complain Of their inability to
employ their funds upon entirely satisfactory
terms. The demands for accommodations at
that centre are described as slack. The
only activity in money Is at this centre
and is due chiefly to the fact hat
although the new Government loan was
taken up all over the country the work OF
making payments for the new bonds has de-
volved chiefly upon New York. Trustworthy
information is that there has actually been paid
TO the Treasury all but about S25. 100000 OF the
200. 900 realized by the Government from
the war loan. or the proceeds OF that loan
It is estimated by we'll informed bankers that
fully 5000 900 is still held by special de-
pository banks. In the present condition
OF the Treasury it is safe to assume that
this money will not be required by the Gov
eminent for some time to come. The pay
ment OF the last sos. 900. 900 due the Govern
ment on the war loan is not likely to disturb
the money market. particularly as q large part
OF the amount is pretty certain to find its way
into the depository banks. where it will remain
until the Treasury's net balance has been ma
terially reduced.
Other factors initiating against a seriously
active market for money are the usual autumnal
imports OF specie which are now we'll under
way and indications that Europe is about to
take q more active interest than for some
time past in American securities. Recent
railway congratulations. notably those OF the
Northern Pacific. Union Pacific, st. Louis and
San Francisco and the pending reorganization
OF the Baltimore and Ohio Company, have en-
abled European holders OF the securities Of
those companies to recover the losses they sus-
tanned when the tendency Of a large proper
ton OF the transportation enterprises OF this
country was toward insolvency. European
dealers and investors are beginning to real
lie and acknowledge that. In spite OF
their ariou vicissitudes. American rail-
way securities are more satisfactory
investments than South African min
ing shares. South American ventures.
or international securities. Up to the
present time London and its continental cli-
ents have contented themselves with following
the lead of the New York market. but the time
may come again when London will act inde-
pendently Of local board room traders and
mediocre operators in this market.
In the early dealings to-day the prices for
stocks responded moderately to a higher level
OF prices in London. but evidence that liquida-
ton by speculative holders had not been
completed induced the professional element
to play tho market for a further de-
cline. Weakness developed in Sugar Refining.
Brooklyn Rapid Transit. in Northern Pacific
and Union Pacific issues and In Peoples Gas.
The shares OF the Granger trunk lines were
also conspicuously heavy. Tho decline invited
for both accounts. to which the market
responded rather %sluggishly. The closing
was at a fractional recovery from the
prices. The only noteworthy net de-
clines recorded were those sustained by Brook
lyn Rapid Transit. Rock Island. Union Pacific
Northern Pacific preferred. and Net
ropolitan Street Railway. American Tobacco.
was unusually active. closed 2 points
higher han on Saturday. This movement was
for to an extent by advices from st.
Louis that the company has secured control of
one OF the smaller plug tobacco manufactur-
Ing concerns in that city. The only other
active stock that resisted the prevailing
tendency was Manhattan Railway. Con-
Boldated Gas sustained a net loss of
nearly two points on light transactions. The
competition between local gas companies is
increasing. Large consumers of gas
are now receiving propositions to secure their
that they themselves would have re-