The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-09-26
FALL AND RECOVERY
PRICES OF STOCK RUN OFF, DUE TO
RISE IN THE RATE OF
MONEY
LATTER RELAxEs AND
THE MARKET RECEIVERS
Cessation of the Process Of Putting the
Screws on September Borrowers-Loan
Contraction and Consequent Forced
Liquidation AppreciabIy Liahter-Mar-
ket Closes Firm, but Below the Best.

NEW YORK. Sept. 25.-The stock mar
ket reflected decided relief from the proc
ess of putting the screws on speculative
borrowers which has been in effect this
week. Money rates still ruled high, run
ming up to % per cent before midday:
Prices ran off at that time to level
between l and points under last night,
but the money rate then relaxed and
prices started a slow recovery.
1t was apparent that no very plentiful
supply of funds was available to specu-
lative borrowers for use in rebuying of
stocks, but the actual loan contraction
and consequent forced liquidation was
much lighter. 1t was reported also that
payments on account or United states
000 was reloaned in the stock market and
helped to break the money rate. The
general understanding that the secretary
of the treasury was to make a statement
ment for the recovery. There was.
momentary setback after the publication
OF the statement. but prices hardened
again and the market closed firm, but
below the best. Net gains are the rule.
is History Repeating Itself?
1t cannot be said that the offer of the
secretary of the treasury to anticipate the
payment of all government interest due
up to the end of the present fiscal year
gives great hope of relief to the money
stringency in Wall street, but the evil
dence afforded of the secretarys obServant
care of the money market conditions had
a reassuring influence upon sentiment.
1t is recalled that Secretary Gage adopt
ed the same device Oct. 10. 1899, when
the outbreak of the Boer war and the
cutting off of the South African gold
ment of gold to New York and forced
liquidation on our stock exchange on con-
dition of over speculation in newly fioated
industrial securities.
Call loans went to 35 and 40 per cent
during the first week of the month, and
after becoming easier advanced to 35 per
cent again at the end OF the month. Yet,
between Oct. 10 and Nov 1. application
had been made at the subtreasury for the
payment of only 1858, 733 of government
interest not due until after Nov. 1. Dur
ing November there was the same lack
Of result from this offer and it was de-
cided that this eXpedient for releasing the
treasury surplus had failed, although
money continued stringent. in New York
a deficit of $2,7SS,95O on Nov. II, in spite
of heavy loan contraction. On Nov. Is
the secretary issued q circular offering
e ors To- Ge f
interest have failed to meet with i'm
portant responses in other periods Of
Stringehcy.
Depletion Continues.
TodayS immediate DEVELOPMENTS were
that the process of depletion of New York
bank reserves was shown to continue.
Yesterdays deposits at the subtreasury
for Geographic transfers, the large Gus
toms collections and the diminishing pen
sion payments resulted in a loss by the
banks to that institution of 81, 541, 900 for
the day, bringing the loss for the week to
$2,029, 900. Against this is the receipts
of $b00O00O in gold which arrived on the
Majestic yesterday. Today $4,000 was
transferred through the subtreasury to
New Orleans, while that institution paid
out on account of gold deposited at Pa
cific coast points $4,000. 1t is evident,
however. that the position of the clearing
house banks has been so far strengthened
by the loan contraction that the necessity
of further drastic contraction is over for
the present.
to irregularity Total sales, par value,
81, 02000 United States old As advanced
Il and the IS declined Is per cent on
the last CALL
Stocks.