The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-12-12

final prices We're respectively 8 and >
higher than the lowest. Steel lost points
and the preferred rs and their tnal prices
were oriy "a fraction better than the low
est points. The unsupported condition
Of these stocks had a strong sentimental
effect on the whole market. The Nenezue-
lam situation e.erted only sentimental
influence. The real motive for the precip-
tate selling Was the growing conviction
chat q further extensive loan contraction
viii be necessary TO meet the require
ments for money between nov and the
first OF the year. There was less forced
| liquidation from the refusal OF lenders
TO extend maturing loans bat many hold
ers were moved by apprehension that the
same conditions would shortly become
effective IN their own cases, SO that they
threw over large holdings There were
some of the largest lenders in the street,
also. Who withheld their funds rom the
time loan market with the aVowed inten-
ton of waiting for higher rates on
time loans This process served 10 keep
some supply ia she CAL loan market AS
high as Der cent was PAID, however, for
call loans. Time loans for short periods
We're practically Unobtainable and rates
were very firm for me longer periods.
The rates quoted were purely nominal
and aIl sorts Of devices were rcs0rted 80
10 increase the actual rate Of return over
the nominal interest rate. such as charges
for commissions and implied agreements
on the part Of the borrowers to withdraw
onl va certain portion Of the loan account.
Time loans maturing ar this time were
the Immediate cause of the embarass
mcnt Of holders Of stocks. Rumors were
current Of the liquidation OF a loan of
several miiIion dollars 20 a single bank,
which necessitated heavy realizing on
collateral. A curious feature of the incl
dent was that this collateral included
many hundred shares of tine stock of the
bank calling thc loan. which We're sold
i'm the open market Money brokers re-
ported that there was not much calling of
money placed on call. ard they also re-
ported that where ma turing time loans
TO the local banks had to bc paid of
they were unable 20 secure accommoda-
ton from borrowers from interior banks.
The rate paid in such cases was consider
ably above the nominal rate Where the
local hanks are lending at all it is sim
ply to supply the urgent needs Of their
regular customers for routine business
purposes. Sterling exchange remained
firm today and opinions were expressed
that more gold would be sent TO South
America. The retention of the : per cent
discount rate by the Bank of England is
believed to be an indication of confidence
that the Southern demands upon London
for gold can be diverted 10 New York.
The sub-treasury continues to withdraw
large amounts from the money market
and all rumors of relief measures by the
treasury department met with denials.
Today's extreme declines reached from l
to 3 points quite generally. and B. some
Of the less special ran from ! 10 Ia. At
the close it was feverish and unsettled,
but quite materially above the lowest.
Bonds were weak in sympathy with the
stocks. Total sales. par value $3.50 coo.
United States IS and old Is coupon de-
clined 4 on the last call.
Closing quotations OF stocks were as