The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-10-01
This Together With Shaw's Action
Brings Cheaper Money.
CALL LOANS DROP TO TWO PER CENT.
Sensational Recovery in the Stock Market
Shaw'S Visit 10 Wall Strest and His
Tax With Leading Bankers Helps
Restore Confidence.
Restore Confidence.
(By the Associated Press.)

New York. Sept. 30.-The stock mar
ket. which closed utterly demOralized
yesterday as a result of the stringent
monetary conditions and other unfavor-
able circumstances. made a sensational
recovery today. The chief causes for
the Secretary of the Treasury in remov-
ing the restraint on bank reserves and
persistent reports from various quarters
that the coal strike had at last reached
the point where negotiations for a set
tlement were actually under way. An
other influence for better prices was the
decline in call money rates, though dur
ing the morning loans We're made as
high as nineteen per cent. A large part
of the days loans was made at around
ten per cent. but the rate at the close
really nominal, no money being placed
at that fi=ure
Opening prices were better all the
way from a fraction to five points. Wide
opening in which blocks OF two thou
sand, three thousand and five thousand
shares changed hands, were numerous
standard
railway shares, notably st. Paul Louis
VILE and Nashville (Which bare the
brunt of the previous days pounding)
sAd!sseuri Pacific, Union Pacific. the
Coalers and a number of specialties.
On the floor of the Stock Exchange
the greatest excitement and activity
prevailed during the first hour. Brokers
on the short side were covering with
all possible speed and the bull faction
was in absolute control. rhe list mani
tested a vacillatink tendency soon after
the first bulge and many of the active
stocks whose initial gains had been
largest, receded from one to three points.
The opening rate for call money was
II per cent, but soon advanced to is
per cent, creating general confusion
among those committed to higher prices
The more sensational features of The
market developed early in the afternoon
on news from Washington intimating
that the President and his cabinet had
taken steps to terminate the coal >trike.
In spite of the absende of any confirma-
tion, the market seized upon this an
nouncement, and with the coal stocks in
the lead, the entire list shot upward. The
market developed a buoyant tone in the
last hour, though operations were con-
fined largely to the Coalers which were
heavily traded in and closed at pFacti-
cally best prices of the day. The days
operations We're in excess of 1,200,0 900
shares.
Secretary Shaw's visit to the street
and his talks with the leading banking
houses helped in no small way to re-
store confidence, local banks loaned
moderately.
Secretary Shaw gave out the follow
ing statement today:
"The Department is in receipt OF a
large number of requests from various
banks in the country, clearly showing
that the statement given out last night
was misunderstood or rather it was not
carefully read. That there may he no
misunderstanding, the following state
ment is made:
mo new deposits will be made OIL
any security other than government
bonds so long as government bonds can
be secured. For the present banks seem
able to obtain. frequently by borrow
ing, bonds other than two per cent con-
soils They can obtain the use of these
bonds for a limited period, and they ave
as Q6SlTdDI6 dS any IOE S6CuIllY LOI up~
posits They are not as desirable as
security for circulation for the reason
that circulation based thereon is tax
able at one per cent, while circulation
based on the two per cent. consols is
taxable at only one-half of one per cent
The banks cannot obtain except by pur-
chase any bond as a basis for circula-
tion, because when deposited for circula-
tion they cannot be released until the
circulation is retired, and it may cake
a year before the circulation can be re-
tired Therefore the department has
decided to release for such banks as
have deposits and are not maintaining
their limit of circulation, a portion OF
the bonds now held by the government,
taking in lieu thereof other satisfac
tory security on condition always that
the bonds released will be used for the
immediate issue of additional circula-
tion. This provision does not apply to
those banks that already have their
maximum circulation, neither does it
apply to banks that do nor have any
deposits. The sole purpose of the offer
is to increase circulation that is already
printed and ready to be issued and by
banks that already have the bonds on
deposit. Thes deposits being scatteder