The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-16
EMERGENCY LOAN FUND
MORGAN AND OTHERS SUBSCRIBE
FIFTY MILLIONS OF DOLLARS.
1t VIII be Thrown on the Market II
n Real Stringency Arises-Price
Movements Are insignificant.

NEW YORK, Dec. 15.-The. protective
measures agreed on by the banks Of this
city had the effect Of checking dangerous
looking decline in the stock market to-day
and the market closed tranquil and rather
dull. The undertone at the last was firm
and the losses of the earlier part of the
day generally were recovered. When Sat
urday's level had been reached on the re-
covery the action OF the market indicated
that the measures taken by the banking
community were by no means designed to
induce speculation for the rise at this time.
Prices of the market leaders as they rose
over Saturdays level were held back by
very liberal offerings. The statement was
made that no fears were entertained over
the present situation and that the forma-
ton of protective pool was only pre-
cautionary measure and probably no action
would be required on the part of it's MEM
bers in the way of supplying funds to the
market. While the knowledge of the steps
taken by the ruling powers in the financial
world induced a feeling of great relief in
all quarters, the belief was not disguised
that the pool was an emergency measure.
not differing in kind or degree from those
adopted in other periods of crisis in Wall
street.
The action of the market this morning.
on top of last weeks violent decline, fol-
lowing as that did. also. prolonged period
of gradual decline, awakened real anxiety
over the outcome. The violent measures
adopted in the Venezuelan trouble added
to the uneasiness. Sentiment was also
pessimistic over the money outlook. The
opening rate for call loans was 10 per cent,
no dax "a Ia To o.arc
and the heavy Accommodations for the STAN
dard Oil dividend aroused the fear that
there would be additional large withdraw
ais OF credit. Not only the immediate, but
the prospective syndicate needs, running up
TO many millions of dollars were calculated
TO aggravate the fears of borrowers. The
statement OF the cOuntry'S foreign trade
for November was discouraging as to the
foreign exchange situation, showing, as ii
did, decrease in the balance of trade in
our favor of over s24 200, 600, as compared
with November of 1901 The small interior
grain movement lessened the effect, also,
or the recent revival in grain exports:
Later In the day some effect was produced
on sentiment by the rise in Chicago ex-
change from 25c premium Saturday to 40c
premium to-day. The payment by the sub
treasury or S35O,OO0 on a Geographic trans
fer from San Francisco marked the abate-
ment OF demand on the New York money
market which has caused much apprehen-
weakened materially. This last-named fea-
ture was directly due to the higher money
rate. What effect on all these factors may
result from the provision of $50 600 re-
lief fund for the New York money market
Is problem which Is the subject of much
interested surmise. The market showed
| some hesitation at the close, but the tone
| was firm.
| The specific nature of the emergency re-
| lief measure is that number of banks of
| this city and j. p. Morgan & Co. have
| formed a pool of $50,OOO.O 600 to lend in the
money market in the event of actual emer-
gency. The pool was organized by George
| f. Baker, president of the First National
| Bank. That bank, j. P. Morgan & Co., the
National City Bank, the Chase National
| Bank, the National Bank of Commerce, the
| Hanover National Bank, the Fourth Ma
| tional Bank and the Western National
Bank have pledged themselves for S., 900 900
each. The Corn Exchange Bank agrees to
| subscribe $2,5O0,0O0, and the Chemical Ma
| tional Bank and the Bank of New York
100000 each. This measure is really pro-
| tective, and 1t is not apprehended that any
of the money will be actually needed. 1t
| will be put out, however. should the occa-
| j.. Z. Morgan, George F. Baker, president
| of the First National Bank, and James
| Stiiiman, president Of the National City
| Bank.
| Following the precedent established by
| the late +. c. Lappen, who managed such
| pools in similar cases, the money will be
| put out ''at the market" in unlimited
amount. In this way the interest rate will
| be kept down to the legal rate, or lower,
4 II II is considered necessary.
| The bond market was broad, and the
| morning was weak, but showed some re-
covery. Total sales at par value were
/ $3.120,000. United States bonds were all un-
| changed on the last call.
| Following the days share sales and
/ the recorded Drice changes.