The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-12-16
DECLINE THAT
LOOKED BAD
Condition on u all Street Leads
10 a Bankers Pool.
FORMED FOR EMERGENCY
Fifty Million to Lend on the
Money Market If Necessary.

New York. Dec. "a number CT banks
Of this city ard J. P. Morgan & CO. have
formed a pool Of S50000,ooo 10 lead in the
money market in the event OF actual
emergency
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 Ma
tlonaI bank. the Fourth National bank
and the Western National bank nave
pledged themselves for S5,lg0011 each
The Corn Exchange bank agrees TO sub
scribe s.. -. 900 and the-Chemical National
bank and the Bank Of New York SI.ls9,-
~ each
This measure is really protective oae
and II is not apprehendeG that any of
the money viii be actually needed. IL
viii 5e put out. however. should the oc-
cssion arise.
The following viii manage the pool
money: J. Pierpont Morgan. George r.
Baker. president OF the First National
bank. and James Sullivan, president OF
the National City bank
Following the precedent establishd by
tn late F. D. Happen. VINO managed such
pools in similar cases, the money will b.
put out AT the market in unlimited
amount In this way the interest rate
VIII be kept down 10 the legal rate or
lower. If It Is considered necessary
The protective measures agreed upon BIS
the banks Of this city had the effect o.
checking q dangerous looking decline Ia
the stock market today and the market
closed tranquil and rather dull. The uu-
dertone at the last was firm and Jha
losses of the earlier part Of the dag gen
orally were covered When Saturday
level had been reached on the recovry
the action Of the market indicated that
the measures taken BY the banking com
munity were by no means designed 10
induce speculation for the rise at this
time Prices OF the market leaders as
they rose over Saturdays level. were
held back BIZ very liberal offerings. The
statement was made that 10 fears were
entertained Of the present situation and
that the formation OF the protective pool
was only a precautionary measure and
probably no action would be- required on
the part Of its members in the way Of
supplying funds 10 the market While
the knowledge Of The steps taken by the
ruling powers in the financial world in
duced feeling Of great relief in all quar-
tiers, the belief was not disguised that
the pool was an emergency measure. not
differing II kind or degree from those
adopted in other periods o crisis in Wal
street. The action Of the market this
morning on top last week violent de-
cline. following as that did also pro-
lOnged period OF gradual decline awak-
ened real anxiety over the outcome. The
violent measures adopted in the Venezu-
elan trouble added 10 the uneasiness.
Sentiment was also pessimistic over the
money outlook The opening rate was
10 per cent and the days large syndicate
requirements and the heavy accumula-
tons for the Standard oil dividend
aroused the fear that there would De adj
ditional large withdTaw walls OF credit Not
only the immediate but the prospective
syndicate needs. running UP to many
millions Of dollars. were calculated 10
aggravate the fears OF borrowers.
The statement Of the country's foreign
trade for November was discouTaging as
70 the foreign exchange situation. show
ing as II did decrease in the balance
of trade IN our favor OF over s3i.0191Ga
compared with November. 1871.
The small interior grain movement les
sened the effect also OF the recent re-
vival IN grain exports. Later in the day
some effect was produced upon sentiment
by The rise in Chicago exchange from
. cents premium on Saturday 10 - cents
premium TO-DAY The payment By tne
sub-treasury OF $4,000 On a Geographic
transfer from san Francisco marked the
abatement Of a demand upon the New
York money market which has caused
much apprehension. The foreign ex-
change market also weakened materially
The last named feature was directly due
10 the higher money rate. What effect
upon all these factors may result from
the provision OF a So. 90 80 relief fund for
the New York money market is q prob
lem which is TIE subject Of much inter
ested surmise- The market showed some
hesitation AZ the close, but the tone was
firm
The bond market was broad and in the
morning was weak but showed some re-
covery. Total sales, par value, g lZ49oo.
United States bonds were all unchanged
on the last call.
Closing stock quotations were as fol-