Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-16
Money Pool Has a Good Effect
on Operations in Wall
Street
EFFECT MOSTLY SENTIMENTAL
Pool is Formed With a View of Meeting
Any Emergency Which May Be Oc-
casioned by Severe strinsency in the
Money Market-Loans From the Pool
May Not Be Actually Necessary.

New York, Dec 16.-The announce
ment was made in Wall street that
money pool of s50,0OoO0O had been
formed by q number of banks, to be
used as safeguard against a possible
money panic, and caused rally in
prices of securities on the stock ex-
change and had a decidedly sentimental
effect in favor of the bulls.
The announcement was made about
o'clock yesterday, and in some brokers
offices, as it was read off the ticker,
was received with cheers and applause.
There were, however, no loans made out
ment was enough to send the rate for
call loans from 10 per cent, the highest
for the day, down to per cent. at
which price 1t remained until the close
of the market.
The statement, as given out officially,
was to this effect:
with view of meeting any emer-
gency which by any possibility may be
oecasioned thru a severe stringency in
the money market, number of banks
have agreed to place at the disposal OF
George f. Baker, J. Pierpont Morgan,
and James Stillman, as a committee,
$4,000, 900.
among the subscribers are the First
National bank T. P. Morgan & Co., the
National City bank, the Park National
bank, the Chase National bank, the Ma
tional aBnk of Commerce, the Hanover
AZ. 4. I, Voc Nnt
bank, which subscribe $5,000000 each;
the Corn Exchange bank, subscribing
50, 500, 600, and the Chemical National
bank and the Bank of New York, who
subscribe s1,00O,000."
!. It will be noticed that this makes a
total of only s44.500,000. The remaining
amount of s5.500,000 has been subscribe
ed in amounts less than s1,000000, and
the names of these subscribers We're not
made public. 1t is understood that the
scheme was conceived last Friday,
when six institutions agreed to furnish
$50 600 000 but when the other particf-
pants of the present pool heard of it
they desired to be taken in. and conse-
quently the amount was raised to $780,
100000.
When Wall street recovered from its
first enthusiasm on receipt of the news
brokers and others of an inquisitive ma
ture began to ask where this money
suddenly came from and why il had not
been brought out before. The wags
suggested that the bank officials must
have gone thru their old clothes and
found money that they did not know
| they hid.
When this was brought to the notice
of Vice President Hine, of the First Ma
| tional Bank, he laughed and said:
"Of course, the money came out of
our vaults, tho / don't quite see why a
| borrower who needs the money should
ask the lender where he got 1T from,
| The money, of course, represents part
| Of our excess reserve.
Another banking official who was
seen about this pool said that he did not
expect that loans out of this pool would
sentimental effect resulting out of the
announcement would be enough to re-
Ilieye the situation. The suggestion that
| the banks had taken this action In or
der to advance prices on the exchange,
| he said, was absurd.
| This idea was, however, voiced by
| many brokers, who said that, now that
the .'big fellows" had bought stocks at
| bottom prices they We're trying to move
up the market in order to sell out with
profit.
1t was stated officially that the meas
ure was intended as a preventive and
protective step, and that the money
would be loaned only when the situa-
! ton demanded it, and that Messrs. Nor
gan, Baker and Stillman would have to
decide when the stage for the release
Of the money had been reached.