New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-16
STRINGENCY CONTINUES.
THE CALL MONEY RATE AGAIN RISES
TO 20 PER CENT.

The strnsency in the money market continued
yesterday the call money rate again going high
as 70 per cent The foreign exchange market de-
cined further demand sterling ruling at 1853 early
in the day and, after showing a subsequent harden
ing tendency closing at 4851SG4S5I. After the
close of the market the important fact became
known that the National City Bank had arranged
for the importation of about $500 COO of gold which
IS about to arrive in London The special cir
cumstances attending this engagement could not
be learned. but II seems only matter OF a few
days before the sterling market will reach the
recognized import point, that it is believed that
the City Banks engagement will soon be followed
by other importations, which will do much to re-
leve the present stress. IT seemed to be indeed
the prospect of an early inward flow of gold. rather
than confidence inspired by the announcement of
the Secretary of the Treasury. which prevented
serious disturbance yesterday in the stock market
Call money was high all day until the very close.
when, the urgent demand having been satisfied,
mainly around Is per cent nominal rate of per
cent was made. The opening call loan rate was 10
per cent. and the market responded with sharp
general decline. in which short selling played con-
spicuous part. Bull leaders put in supporting or
ders but the recovery in prices did not make much
progress until there occurred further sharp de-
cline in the sterling exchange market. which
brought the probable imports of gold measurably
nearer. Posted sterling exchange rates were re-
duced twice during the day, long bills a full cent
to the pound. On the rally the shorts were buyers
AS the day advanced the market became dull and
irregular. There was no evidence Of heavy hquida-
tion and the tone at the close still hopeful
Yesterday the day which payment of the
second instalment SIS 0600 subscriptions to the
new Oregon Short Line participating bonds fell due
About 100000 of this amount. it is understood
was paid with the first nstalnent, but the pay
ment of the remaining s1200O009 necessarily pro-
duced a temporary additional tightness of the
money market, although the money turned lin was
as promptly possible put back into the market
The Standard Oil dividend of s5.0o0.6lD and the
81 $1,000 Consolidated Gas dividend were also paya-
BILE yesterday, most of this money also representing
only q brief shifting Of accounts from one locll
bank to another Time money is in brisk deInahu
but the supply is triing IL amount. the lenders Oh
money preferriug their funds In MAKING en-
loans at the prevailing high rates: Most or Ihe
loaned by out OF town institutions The ast OF tI
Treasury Department checks made In antlclpallOn
of the october interest, amounting 10 aooGt $+ou.
co. sent out from Washington yesterday anu
expected that by the end OF the week most "
the money called for by these checks ana the coL
pons will have been paid over by the various SUI
at the local Sub-Treasury by the banks for trans
fer to interior points. the demand for money 70
ceipts on the other hand continue large anu az
of these funds go into the Treasury from NiliSn
they can be restored to circulation Only py SpecInc
appropriation by the action or the Secfetdt y
whose policy was officially announced In his state
ment of Saturday. There is reason 10 peHeEe IIIaN
not more than one-ifth Of the free oonoS re-
banks in the large cities so that these panSS-oei1s
unable buy or borrow United states oonGs-couii
not even if they concurred in the Secretary views,
take additional ctrcula ton X is saiu atIoush
the report could not be confirmed. that represeI
lions have been made to the Secretary IN favor 81
his accepting bonds other than United states ooIS
These funds, 1t is urged, he should deposit Win
the banks.