The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-09-16

NEW YORK, Sept. 15.-Today's
stock market showed itself very SEN
sitive to the money situation, and the
price movements throughout the day
We're closely related to the develop
ments in the money market. The hrm
opening in the stock market was OBJ
viously due to the hope that the meas
ures of relief announced by the secre-
tary of the treasury would result In
forcing down the rate for call loans.
The opening rate of 15 per cent coun-
teracted this influence and Induced
general spilling over of stocks all
around the ROOM Money lenders report
ed that the funds offered at 15 per
cent were mostly for account OF out
of-town institutions. Several millions
reported shipped from Chicago on sat
urday were presumably included IN
these funds Meantime the local banks
were holding for a 20 per cent rate,
which some of them got later in the
day, when the out of-town supply had
been absorbed. When the demand for
loans had been satisfied some of these
banks found themselves with funds
still on hand, which they offered in the
market and helped to break the rate
to per cent.
Aggravated by Short Line Bonds.
The maturity of 15,00o,0 600 INSTALL
ment on, subscriptions to the Oregon
Short Line bonds issue greatly ag-
gravated the situation, and necessitat-
ed considerable calling and shifting OF
loans. At the time the previous SIM
liar installment was paid the funds
were Immediately reloaned at the
stock exchange, and the presumption is
thus warranted that the same thing
was done today. This would account
for the large supply of money which
came into the market late in the day.
Small requirements left unsatiSfied at
the time emphasized the weakness.
The sharp decline in Sterling exchange
encouraged the hope that the engage
ments of gold for import are near at
hand, the rate for sterling at the close
being within small fraction of the
point at which gold imports are reck-
oned profitable. Posted rates for
sterlin sixty-day bills were twice re-
duced, bringing the price down a full
cent in the pound, while for demand
sterling the posted rate was marked
14c.
London Rate Not Affected.
The London money rate was not af-
fected, but the stock market there was
disturbed by a fear that the Bank Of
England would advance it's minimum
discount rate this week in order to
help divert New York's demand for
gold upon Paris, which is generally be-
lieved to be best equipped at present
to meet the demand. The stock mar
ket closed without any actual engage
ment being announced. The low
prices of the day in the stock market
followed closely upon 20 per cent rates
for money, and the late easing in the
money rate resulted in a substantial
rally and wiped out earlier losses in
number of important stocks, but still
left fractional net losses in the ma
jority of cases. ~~ $50
No one is heard to express any ap-
prehension that there is danger OF
money crisis in commercial or INDUS
trial affairs, but the outlook for specu-
lative borrowers for the purpose of
holding securities on margin is be-
lieved to be somewhat clouded The
point is made that the recent depletion
of New York bank reserves is largely
on account of subtreasury require
ments, due to heavy custom payments,
and not on account of interior demand
for money. This would indicate that
the heaviest demand from the interior
is vet to come.
Local to New York.
1t is pointed out also that the present
stress for funds centers very largely
about the stock exchange, and is local
to New York. The plan of relief Of
the treasury will be widely scattered.
In respect to the increase of govern
ment deposits previous experience has
shown that offers to pay government
interest in advance are not largely
availed of, even in periods of actual
stringency. The general opinion this
evening was that the best hope of re-
lief for the money market lay in the
prospects of gold imports.
An upward movement in sugar was
a slightly sustaining influence in to-
days weak market.
Bonds moved narrowly with stocks.
Total sales, par value, $3,050,000. Gov
eminent bonds were all unchanged on
the last call.