The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-09-16
MONEY STRlNGENCY MAKES
STOCK MARKET SENSITIVE.
CALL LOANS ARE MADE AT
TWENTY PER CENT.
Later the Rate Breaks to Six Pei
Cent. Prices Being Affected
by Every Change.

New York. Sept. I5-To-day's stock
market showed itself very sentitive TO the
money situation and the price movements
throughout the day were closely related
to the developments In the money market.
The firm opening in the stock market was
obviously Que to the hope that the meas
ures of relief announced by the Secretary
OF the Treasury would result in forcing
down the rate for call loans. The open
ing rate OF Is per cent counteracted this
influence and induced a general spilling
over of stocks all around the room. Money
lenders reported that the funds offered at
Is per cent were mostly for account OF
out-of-town institutions. Several millions
reported shipped from Chicago on Satur-
day 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 salts
fed some OF these banks found themselves
with funds still on hand which they offered
in the market and helped to break the rate
to 6 per cent. The maturity Of a sl5.0D.ooo
instailment on subscriptions to the oregon
Short Line bonds issue greatly ~aSgravateo
the situation and pecessitated considerable
calling and shifting OF loans
FUNDS RELOANED.
At the time the previous similar instil-
ments was paid, the FUNDS were immedi-
ately reloaned at the Stock Exchange and
the presumption is thus warranted that the
same thing was done to-day.
THIS would account tor the large supply
OF money which came into the market late
In the day. The small requirements left
unsatIsned At At the e.r time ds:,,n em p s;az,i1, sn ne
change encouraged the hope that the en-
gagements OF gold for import are near at
hand. the rate for sterling at the close be-
ing within a small fraction Of the point at
which gold imports are reckoned profitable.
Posted rates for sterling 60-dey bills were
fun cent in the pound, while for demand
sterling the posted rate was marked down
half a cent. The London money rate was
was disturbed by a fear that the Bank OF
England would advance its minimum dis
count rate this week In order to help divert
which is generally believed TO be best
equipped at present to meet the demand.
The stock market closed without any actual
engagement being announced
RALLY AT CLOSE
The low prices of the day in the stock
market followed closely upon the 20 per
cent rates for money and the late easing
In the money rate resulted in a Substantial
rail. which wiped out earlier losses in a
number of important stocks. but still left
fractional net losses in the majority OF
No one Is heard TO express any appre-
hehsion that there Is danger of a money
Srisis IN commercial or Industrial affairs.
Dut the outlook for speculative borrowers
Tor the purpose of holding securities on
margin Is believed to be somewhat clouded.
Inc point Is made that the recent deple-
tlon OF New York bank reserves is largely
on account OF Subtreasury requirements. due
10 heavy customs payments. and not on ac-
count OF interior demand for money. This
would indicate that the heaviest demand
from the interior Is yet TO come. 1t Is
pointed out also that the present stress for
lunds centers very largely about the stock
exchanges. and is local to New York. The
plan OF relief OF the Treasury Department
Will DE widely scattered in respect to the
Of (rOVarnmAnt laDoel.. -.
experience has shown that offers to paw
Government interest In advance are not
largely awaited of, even in periods of actual
.stringency. The general opinion this even
was that the best hope of relief FOR
the money market lay in the prospects OF
was a slightly sustaining infuence IN fo.
weak market.
Bonds moved narrowly. In sympathy with
stocks. Total sales. par value, were S3O50OoO
Governments Were all unchanged on the
last call.