Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1899-07-13
THE MONEY SITUATION.
The Money Trust i'm New York Can
Control Ready Cash An Tre-
mendOus Amounts.

| Wall Street Journal: We understand thai
the money situation has been carefully
canvassed by bankers, with the result OF
eSra blfshiEg the fact that there Is not the
slightest reason 10 fear any disturbance IL
! money rates for some time TO come We
are told that some very prominent financial
| interests find that they can render avail
| able TO the local money market some very
! large sums N addition to those now al its
control should they be needed These re-
sources are large enough 10 place i cut OF
the power Of any single money lender 10
/ disturb the situation ID any single money
! lender 10 disturb the situation 70 acy
marked extent even = he 50 desired Bank
ers have satisfied themselves that money
/ VIII Tale easy al summer.
/ The above, says the Peoria Journal
/ (rep-). Is simply confirmation Of what
has been predicted all along in these
columns that sooner OF later q money
trust would be formed il New York
/ that would not only fix the price OF all
| securities, such as stocks, bonds
mortgages, etc. but also fix the price
| of any marketable commodity IN the
/ country. Nothing, in fact is simpler.
| Here Is the modus operandi as de-
scribed by our Peoria contemporary:
The principal officers of the New York
stock exchange are men who are in
| the main identified with nearly, if not
quite, all the large life associations Of
the country. The five leading life as
sociations can control something like
a thousand million of ready money
at almost moments notice The man
who desires to borrow any consider
able sum of money, as, for instance, a
quarter of a million dollars. on any of
the leading railroad securities or in
dustrial trust stocks makes his appli
cation for a loan The board of
audit recently appointed by the
board of governors" OF the New York
stock exchange, from among their own
number, fixes the price of the secur-
tiles offered as collateral. For exam
pie, let these collaterals be c. B. d
@ stock or c. d a. stock, or in fact
the stock of any other first-class road.
The stock is quoted to-day at S1.35 or
a similar figure. The board of audit"
fixes the price Of the stock upon which
money is 10 be loaned al two-thirds the
value quoted on the open board. For
every $1,000 worth of such stock the
borrower possibly receives $3.50 An
absolute bill of sale is made of the
same and the borrower gives a mem
orandum that he can have the securi-
ties when he pays $3.50. Instead. how
ever. of receiving $3.50 he IS paid that
amount less the interest. which Is de-
Quoted from the loan AT the time II is
made. The interest ranges all the
way from 2t03 per cent. TO 1917 per
cent per diem. The day after Res
well P Flowers death it is said that
money actually brought as high as
1919 per cent per diem in New York.
and this is said TO be full exp3ana-
ton CT the notable fact that there was
no panic Men who speculate in stocks
are forced to have quick loans in or
der to make both ends meet and quick
loans mean a high rate of interest. The
money situation has been carefully
canvassed. as the Wall Street Journal
says With a total volume o. s.. 300
ooo,ooo in circulation II is now difficult
10 control the market when S. OO0,0 o0.-
600 of that volume is under til . control
of five or six large corpora tions. From
now on a lively game Of tag will be
played with trust securities.-IIlinois
State REGISTER