The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-26
MONEY MARKET RELIEF
SLIGHTLY BETTER CONDITIONS AID
AN ADVANCE IN STOCKS.
Promise of Further Help in This Di-
recti0n Is Another GOOS Factor
Small Advances Not Wholly Held.

NEW YORK, Sept. 25.-The stock market
reflected decided relief from the process
of putting the screws on speculative
borrowers which has been In effect this
week. Money rates still ruled high. run
ming up to p per cent. before midday.
Prices ran off at that time to a level be-
tween one and two points under last night,
but the money rate then relaxed and prices
started slow recovery. 1t was apparent
that no very plentiful supply of funds was
available to speculative borrowers for use
in rebuying of stocks, but the actual loan
contraction and consequent forced liquida-
ton was much lighter. 1t was reported
also that payment on account Of the United
States realty merger amounting to over
s1OOO0,OOO were reloaned In the stock mar
ket and helped to break the money rate.
The general understanding that the secre-
tary of the treasury was to make a state
ment and offer additional relief was an
argument for the recovery. There was a
monetary 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.
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 evidence
afforded of the secretarys observant care
OF the money market conditions had re-
assuring influence on sentiment. 1t is re-
called that Secretary Gage adopted the
same device on the 10th of October, 1899,
when the outbreak of the Boer war and
the cutting off of the South African gold
supply had checked the import movement
or gold to New York and forced Hquida-
ton on the Stock Exchange then in a con-
industrial securities. Call loans went to
80 and 40 per cent. during the first week
Of the month and after becoming easier
advanced to IS per cent. at the end of the
month. Yet between Oct 10 and Nov. 1
application had been made at the SUBJ
treasury for the payment of only 1888. 1888
Nov. /. During November there was the
same lack OF results from this offer and
1T was decided that this eXpedient for re-
leasing the treasury surplus had failed,
New York and the reserves of the banks
had reached a deficit of S2,7SS,950 on Nov.
II, In spite of heavy loan contraction. On
Nov. Is the secretary issued a circular
Offering to purchase SIS, 600 900 of govern
ment bonds. Offers to anticipate govern
ment interest have failed to meet with i'm
stringency.
To-day's immediate developments were
that the process of depletion of New York
bank reserves was shown to continue as
the deposits at the subtreasury for tele-
graphic transfer, the large customs col
lections and the diminishing pension pay
tbaf in loss by the banks
bringing the loss for the week to 81 O29 600
Against this is the receipt of 81, goo in
gold which arrived on the Majestic yester-
day. To-day $350,OOO was transferred
through the subtreasury to New Orleans
While that institution paid out on account
OF gold deposited at Pacific coast points.
S439, 600. 1t is evident, however that the
position of the clearing house banks has
been so far strengthened by the loan con-
traction that the necessity of further
drastic liquida ton is over for the present
Early weakness of bonds gave place TO
irregularity. Total sales, at par value,
were s4,020.OO0. United States old fours
advanced "A per cent. and the twos de-
clined 70 per cent. on the last call.
The following table shows the range of