The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-16
MONEY AT 20 PER CENT
SECRETARY sHAw's PLAN OF RE-
LIEF IF LITTLE EFFECT.
Late Break I'm the Call Loan Rate
Results i'm n substantial Rally I'm
the Prices of Stocks.

NEW YORK, Sept. 15.-To-day's stock
market showed itself very sensitive to the
money situation. and the price movements
throughout the day were closely related
to the developments In the money market.
The firm opening on the stock market was
obviously due to the hope that the meas
ures of relief announced by the secretary
of the treasury would result In forcing
down the rate for call loans. The opening
rate of l5 per cent. counteracted this in
auence and induced a general splitting over
OF stocks all around the room. Money
lenders reported that the funds offered at
Is per cent. were mostly for account of out
of-town institutions. Several millions re-
ported shipped from Chicago on Saturday
were presumably included In these funds.
Meantime the local banks were holding
for a 20 per cent. rate. which some of them
got later In the day. when the out-of-town
supply had been absorbed. When the de-
mand for loans had been satisfied some of
these banks found themselves with funds
still on hand, which they offered In he
market and helped to break the rate to 6
per cent. The maturity of a SIS. 900 900 in
stallment on subscriptions to the Oregon
Short-line bonds issue greatly aggravated
the situation, and necessitated considerable
calling and shifting of loans. AT the time
the previous similar lnstallment was paid
the funds were Immediately reloaned at
the Stock Exchange. and the presumption
is thus warranted that the same thing was
done to-day. This would account for the
large supply of money which came into the
market late In the day. The small require
! nlents left unsatisied at the time empha-
sized the weakness.
THE ShaFD dQQlina IN Sforlfnp apcOIrQ Qpd
the hope that the engagements of gold for
import are near at hand. the rate for ster-
!ins at the close being within a small trac-
ton Of the point at which gold imports
are reckoned profitable. Poster rates for
sterling sixty-day bills were twice reduced,
bringing the price down a full cent on the
pound. while for demand sterling the
posted rate was marked down " cent. The
London money rate was not affected, but
the stock market there was disturbed by
q Tear that the Bank of England would
advance Its minimum discount rate this
week, in order to help divert New York's
demand for gold on Paris. which Is gen.
orally believed to be best equipped at pres
ent to meet the demand. The stock mar
ket closed without any actual engagement
being announced.
The low price OF the day In the stock
market followed closely the 20 per cent.
rates for money and the late easing In the
money rate resulted In a substantial rally,
which wiped out earlier losses in a number
OF important stocks but still left trac-
tlonal net losses in the majority OF cases.
one Is heard to express any apprehen-
sion that there Is danger of a money crisis
In commercial or industrial affairs. but the
outlook for speculative borrowers for the
purpose OF holding securities on margin is
believed to be somewhat clouded. Tue
point Is made that the recent depletion OF
New York bank reserves is largely on ac-
count OF subtreasury requirements, due to
heavy customs payments and not on ac-
count of interior demand for money. This
would indicate that the heaviest demand
from the interior is yet to come. Ii Is
pointed out also that the present stress for
funds centers very largely about the Stock
Exchange and Is local to New York. The
plan of relief of the Treasury Department
will be widely scattered with respect to the
Increase In government deposits. Previous
experience shows that offers to pay gov
eminent interest In advance are not large
ty avafled of. even in periods of actual
~strfngency. The general opinion this even
ing was that the best hope of relief for the
money market lay in the prospects of gold
imports. An upward movement In Sugar
was a slightly sustaining influence In to-
days weak market.
Bonds moved narrowly, in sympathy with
stocks. Total sales, at par value, were
s3,050.OW. Government bonds were all un-
changed on the last call.
The following table shows the range OF
stock quotations on Monday.