New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-25

t,J->-7-F.RS BEGINNING TO APPEAR
-,r BANkFRS AND THE POOLS.
-, street passed an anxious and exciting day
dav but at the close the situation seemed
yes Than at any preceding time this week The
So e. money touched % per cent, and hquida-
t@ .+ocls upon an enormous scale occurred the
60 of which viii appear, 1t Is expected IN i
,5ad Improvement in the next bank statement
or,,sred with the showing in last SATURDAY
q lent The stock market opened with prices
,1Iz under Tuesdays closing figures, and at
-, IN go down The movement, which was
tons aided in some measure by apprehension
-. rning the possibility OF a serious outcome OF
80 Presidents illness. but which was mainly due
. enforced liquidation. continued for only Few
.,.s when temporary rally occurred, caused
nv short covering 49,
% IN money opened at IS per cent. and, after
-. reacton to Is per cent, advanced rapidly TO %
cent the highest point touched since the money
--ret situation became acute. When the can
ate began to soar the stock market broke
ho-nlv and generally The banks offered COM
,srativeiy little money on call. even at the hlsh
- -rIing and the brokers' unable TO obtain
= 1o.ns gave their customers the alternative OF
Iire o,,t part of their commitments or putting up
,ore margin. Many accounts not solidly marSineo
80 sacrificed as well stocks held by operators
- sa. IN the market bottomless PIT whiie d
o1 If short selling did its part in Fastening
dounu,ard movement. which for time seemed
rl.ly 10 become q panic. and in the course OF
.,rb many stop loss" orders were uncovered
rrbe r,-essure to sell was at its greatest little
.s.o-noon when call money was quoted at . per
,.,. chic tine came the report from Washing
80 +bst the Secretary Of the Treasury was coTsid-
3p the sdvisabiIity Of increasing the government
sosi+s In national banks 10 the market value OF
ne bonds lodged with the Treasury as coiialera1
g e,,h seposits a course which would put into
aI+Io1 between sl5.ooo,sr1 and NS.oo.oto adj
57.ioral money most OF which would be
ysi,sh1e for meeting the needs OF THIS
,.-lat The report found prompt credence.
- she feeling gained force that the violent loan
+-sc-io, had reached its maximum Supporting
orders came in from powerful Interests ana the
lie, hunters who we're in the Street In consd-
.bie number began 10 buy, in many cases pur-
,basi5e their selections outright BY o'clock the
ali money rate had declined 10 about IS per cent,
1d hence mil almost the close i continued to
20 down reaching Z per cent just after : O'Clock
and per cent at ESQ o'clock. a late furry ran 1t
IN m * per cent but the quoted rate at the close
was Is the opening rate. The sighting oft'he Ma
iesric little before the close Of the market helped
10 improve sentiment for the Majestic was bringing
under consignment to the National City Bank
100000 gold
The afternoon rally continued well the end
If the dav and at the close OF the market the
prices we're as q general rule, through the active
list. only fractionaIly below Tuesdays closing
While there few fractional advances. here
snd there. and the tvo point drop of ~. Paul the
greatest loser among the stocks, IN which the deals
were most heavy was balanced by - point rise
IN Manhattan which bought. It was said. by
rival traction interests
The total IF the days sales vas nearly 40 IN
shares
The foreign exchange market declined yesterday
afternoon. but the demand sterling rate ar the
close S57x $50 still FAR above the gold i'm
portarion level. Customs collections continue to
average about 81 00o 600 day. and the SubTreas1rv
disbursements for pensions are likely - be daily
less for the next two weeks. On the other hand
The demand from the interior for crop moving
needs is beginning to broaden S5509Go having been
deposited yesterday at the Sub-Treasury for trans
fer 10 inland points-s45o.epo TO Chicago and sleo
e 10 New-orleans With all these positive and neg
alive drains on the New-York money market. OF
The stoppage OF which there is no immediate pros
pect il Is felt N the Street that il would be an
opportune course for the Secretary Of the Treas
Ury within the next few days TO issue an order per
hitting the releasing Of government money to an
amount represented by the difference between the
face and market values Of the United States bonds
put UP by the national banks as security for gov
eminent deposits. The severe and continued loan
contraction viii. CT course. place the banks in q
much stronger position than they have recently
had. but il cannot add actual cash 10 their hold
inss and cash is needed.
Il IS reported on good authority that the stock
Il conference oH several bank presidents follow
Ing the issuing Of last Saturdays bank statement
At that conference II IS said. il computed that
certain pools with uptown hotel affiliations had
borrowed from the banks between 100000 and
SO gh099 IN the course Of their vast speculative
operations. and was decided that instead OF con
1inuing 10 grant their incessant applications for
additional loans the accommodation extended -
them should be sharply curtailed II the banks
themselves were not to become crippled. The car
rying Of this policy by the banks forced imme-
date and heavy liquidation. which has involved a
multitude small SPECTATORS and operators. as
vel the great speculative pools; but the remedy
although drastic, is generally agreed to have been
necessary and salutary-
Discussing the situation. well-known banke
said yesterday:
The only hope for the money market is in liquid
alton OF loans The amount of foreign money
loaned here Is fabulous. and ! don't think the
money They simply fail 10 grasp the really pros
Porous conditions over here. and afraid to put
credence al all IN the hopeful statements of the
bankers that they get money from Europe
whenever they want ii. There is no question that
several pools have been carrying large lines OF
stock and borrowing money do II.
Ihelr banks have In many instances notified them
70 reduce their loans and the result is very natural
They had 10 sell out stocks. That Is what is break
ing the market. The forced to sell Will
lose, but the money market will be easier, The
money is the liquidation Of loans II can't be
settled by any other way.
An Idea Of the extent to which prices have de-
clined this week in consequence of the heavy Hqu
dalton is given in the following table:
Saturdays Yesterdays
close low level Decline