Omaha daily bee., 1902-09-21
NEW YORK STOCKS AND bonds.
TiEhtness I'm Money Market still Keen
with Little Prospect of Relief.

NEW YORK. Sept. 2O.-The problem of
the money market was thrown into a criti-
cal state today by the disclosure OF the
clearing house banks were 81, ls2. $50 below
the legal requirements: This was In spite
Of a contraction in the loan account of
81, 964 800, tho ~shrinkage In the cash hold
ings having reached 1881, 700, as against
preliminary stimate OF less than 100000.
appearance OF the statement. which eject
ually wiped out the previous gains which
had been established under the leadership
buying OF st. Paul There was the appear
ance of urgency In The selling and the
losses established were not severe. The
market closed distinctly easy and with no
effective rally from the decline beyond the
covering demand OF the room traders, who
took quick profts on the decline. The last
time when a deficiency developed in the
reserves OF the New York banks was for
the week ending November T.. 1889. Re.
weeks following in spite OF the loan con-
traction until November Is, when relief
was afforded by Secretary Gage. This was
the period OF the first large hotation Of
industTials and the Misrepresentation which
had occurred In them left the stock market
vulnerable TO the influence of the tight
money which persisted into December.
The outlook for the money market has
dominated the speculation in stocks
throughout the week. Losses have not been
severe at any time and the early declines
were largely recovered toward the end OF
the week as the rates for call loans at
ency. But there was no revival Of the
animation which characterized the specula-
the money squeeze and only a few stocks
showed any considerable activity, even
after the relaxation in the stringeney Of
alton seemed to be promptly relieved as
soon as the calling Of loans ceased and
prices Of stocks were easily lifted again
without inducing any important renewal OF
the selling. This was a reflection OF the
confidence in the promise Of active trade
manifested early In the week from the
freezing weather In the northwest and the
reports Of damage 70 the corn crop. but
the belief that the crop Is beyond the reach
OF serious harm overcame this influence.
The tight condition OF the money market
and the anger I 56astU d ps w IqsSIe n ~ tS.
advancing tendency Of stocks. The very
activity OF trade and the large require.
that threatened the money market. ana
especially. the convenience of those whC
are committed to speculation with borrowed
funds. With unusually large crops 70 bs
moved. expanded credits the country over
and foreign exchange complicated by thu
eiEn borrowings, the situation Is sdl fur
Their aggravated by the unexpectedly larg'
customs collections and the approximRt,
exhaustion OF the available means for re
leasing the governments surplus revenues
10 the market. Since July l the government
ma ~ tbsn en- The corresUondine nario,
last year, which Is several millions NOR
than the reduction In the Internal revenul
. from the repeal. OF taxes on July I.
The feasibility OF additional measures o
relief by the Treasury department hav
been actively discussed during the week, 4
Wall street. but none has been found whicl
meets the approval Of the secretary Of tn
treasury. The ~ per cent money rate o.
Monday sent the sterling exchange rat
down 10 a point which made possible IN
epgagemenl OF S.5O0,O0 In gold from Lon
don or IN transit 70 that point. Export
o from Australia will bring the gold boun
D 20 this cOuntry to about 10000 In IN
a next three weeks. The future conditton z
: the local money market. Il Is believed. wi
ann anon tAA AAdhnRal amnnhtH or La