Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-10-02
Tension in New York Financial
Circles is Over But In.
terest High
BANKERS ARE STILL CAUTIOUS
Some Business Projects Still Promoted,
But An Era of Conservatism Will
Prevail at Least Until the Crop
Movement Allows Money to Drift
Back to New York.

nave 5Deen4 so cnaHSeu Dy secretary
Shaw's action that. while interest rates
are expected to be relatively high, the
tension is over, and matters of pro-
motional character are again being
taken up. So far as the market for Sc
curities is concerned, nothing better
4 than irregularity is predicted until
there shall be pronounced evidence of
the beginning of return Of currency to
4 this center.
4 Banking institutions credited with
controlling the money situation are let
! ting it be understood it is too early to
| figure any way other than on the side
of caution, it being impossible to have
| an adequate idea of how extended Will
| be the western demand for currency. 1t
! is still true as to stocks that speculation
will not be permitted to rise to undue
heights until a fairly accurate notion
may be had of the money outlook.
There are number Of things which
the banks themselves are interesting in
having tloated. To unload these securi-
ties will require big market, and the
latter is out of the question at this time.
To permit the relatively small specula-
tors to advance prices now would mean
the unpleasant necessity for another
hoist in interest rates. But when money
gets all right again there will be great
things doing in Wall street. The crops
furnish the foundation for a broad mar
ket a little later when funds shall be-
come plentiful.
hold firm Nacfar1lv
and experts familiar with the attitude
OF foreign bankers toward American
borrowers noted q different feeling
about a renewal of bills maturing this
week. It was pointed out here few
days ago that the big banking house
borrowers were becoming little dis
tressed over what their foreign credi-
tors might do in the event Of local tight
conditions continuing. 1t develops that
there was Il decided unwillingness on.
the part of foreign lenders to renew
their loans, except at prohibitive rates.
Yesterday, with the tension in money
relieved, sixty and ninety-day bills were
freely negotiated.
A well-known exchange house is
quoted as saying:
Europe has fought shy of New York |
recently. Inc lSellus5 was odAihSASiiSis
pronounced to advance the quotations
for renewals OF sterling bills to point
at which local borrowers could not con-
veniently negotiate them. That has re-
suited in some heavy buying OF ex-
change with which to cover maturing
bills and gave strength to the market
at time when high money would or
dinarily have depressed the rate. But
\, al,
day so that 1t is not at all difficult
now for New York houses to extend
their line of such loans IL they wish
to do SO. We are facing steady ex-
change market, next weeks require
ments being sufficiently heavy to give
rise to bids Of about 4S6 flat today
Chicago and New York commission
houses are somewhat exercised over the Il
average cost Of money for the month
Of September. 1t is believed that the
charge will be the highest of any month
in a number of years. New York houses
are charging their Chicago correspon
dents varying rates, to 10 per cent f
being the top so far as noted. Some
have charged less. During the month
of September 1t has been Il case of the
broker paying an average of between
5 and 10 per cent and lending 1t to his
customers at per cent or lower.
Now that the excitement is over
some observers of the stock market
are harsh enough to say that commits
sion houses last Monday sold short
against stocks held by their customers,
and that the big bulge Tuesday morn
Ing was due to covering these short ac-
counts.
There is no doubt the secretary's ac-
ton, with slight but important ex-
ception, was a complete surprise to
every one. AS late as 4 o'clock in the
afternoon Mr.. Shaw had not been
heard from at an institution that is
rifle the largest of it's kind here. In
act, at the close of the market ar ,
We're being made to afford
'elief from q source which had no ref i
,rence to the treasury department. The !
secretary gave out his plans after 10
o'clock, and naturally upset all con- !
litions obtaining previous to that 4
,our. !
There was good reason. THEREFORE, 70, 3
people being caught on the O
wrong side of the market, and among 4
he unfortunates We're included some S
perators understood to be close to the
iould interests. h
Americas Famous Beauties t
L