New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-26
cs1J STRTNGENCY RELIEVED.
RATE AS LOW AS TWO Pth 'h'>
BANKS EXPECTED TO PROFIT
BY AID

~. s+oc,, market relatively s'eaoS anu
strong Yesterday. despite the TACT 'hat NJ a.
- .,orad al substantial net advances over
wednesdays closing prices. After 'he hey
l,o,.idation OF Tuesday and WEDNESDAY not
.-ol,ers zho believed that money "'uiu Ne u
cidedly easier yesterday arranged 10 los aaJr
rode AZ from u 20 II per cent but s1rhseieS oe
a,,r.1oned Yesterday morning, and IN many cases
these brokers had renew their loans a a.. -
2n ner cent The reason for the ngh'leSS iiOs -
he the fact that call for the payment Western -
e17 na on had been made the SUBSCRIBERS to Hie
- T-,i-ed States Realty and Construction Coln-
many underwriting syndicate Pracuca4ly al u ~
money. however, was turned back into 'iie ma
almost as soon as collected with the result O4o
call money which had opened at Is per cent anu
hod -is.- N % bx noon soon afterward reacted,
going in the afternoon a. low as per cent ana
closing at per cent. The decline in the money
rate and the accompanying Improvement IN sIoch
values were due also in part 10 the news from
Washington that the Secretary Of the Treasury was
about 70 announce plan for giving relief 10 the
strain on the market. The early reports were mat
the Secretary would decide to increase the govern
rent deposits in national banks TO the market Falue
If the bonds held by the Treasury collateral ana
the announcement that his proposition contemplated
the prepaynent Of interest up to the close OF the
fiscal year less = rebate, caused momentary set
hack in the stock market advance: but prices soon
hardened again. and the market closed firm
II was not the universal opinion that Secretary
shaw's plan was one which would offer great hope
Of relief TO the money strngency but the evidence
afforded of the Secretary's observan of money
market conditions had reassuring influence on
sentiment Precedent is against the success of the
device proposed by the Secretary II was adopted
by Secretary Gage on October 10. 1893 when the
outbreak Of the Boer and the cutting off Of the
South African gold supply had checked the import
on the local Stock Exchange in condition Of
speculation in newly hoaied Industrial securities,
az al ,oas " 5be month and after becominr eaeieT
raerr emf az he end of he
month. Yet between October 10 and November
psTment % only Sss 9S3 of government interest not
due until after November ! During November
t4ais offer and it decided that this expedient
though money contlnuec Strlhgent mere and the
reserves Of the hanks had reached deficit Of
On Novembe- Is the Secretary issued circular
Offering 10 purchase So 090o0o of government bonds
offers TO anticipate government interest have failed
20 meet important response in other periods Of
on The other hand many bankers YESTERDAY
meet with a good response The president of
would apply for the anticipated interest answered:
why of course will. We would be foolish If
we oi snd get such good loan rates for It We
take the interest on every one OF our bonds
Street district which is credited with doing the
largest business in government bonds for outside
holders when asked what response the Secretary
think thar a very fair percentage Of individual
holders viii accept the offer The interest is
a
who won't apply. There are some government bonds
held in and for estates. the trustees Of which
will not care 70 disturb the ordinary course of
handling them. But the percentage should be large
As for the hanks. think the offer should attract
them. too
The foreign exchange market dull and sasging
during most the day. but late in the afternoon
hardened in sympathy with the decline in call
money rates Demand sterling quoted AT the
rortation being thus still remote There was de-
posted al the Treasury yesterday for transfer
10 New-Orleans the of sS50.eo This transfer
however. was offset by payments Of $4,000 and
sIs4 II for gold deposited at San Francisco and
Seattle respectively. The daily customs receipts
are still exceedingly large. and the bank statement
fo-rnorror will show probably that the banks have
week II is expected however. that a result OF
he severe loan contraction of the last few davs
the statement will be much more favorable than
was last weeks
1,,st before the closing Of the Sub-Treasurv yes
,crdav afternoon t0e00 paid over the counter
the National City Bank. the usual 90 per cent
nticitlated payment for the 5000 600 gold deposited
ir The Assay Office. which had been imported by
the hank and had arrived on Wednesday afternoon
BY the Majestic.
The consular invoices which the Treasury has
reo,ired since 1901 accompany bar gold before
The bullion can be delivered did not accompany
fourteen Of the boxes Of bar gold which came on
the Majestic and al first the customs authorities
refused to deliver the gold and the National City
Bank faced a considerable loss. as the invoices
could not reach here till the arrival of ship next
week. Therefore. the bank might lose the interest
on about 800 900.
Collector Stranahan appealed to. and when
m Official Of the bank explained that they were