Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-20
FINANCIAL SITUATION
Money Furry in the Stock
Market Last Week.
HIGH INTEREST ASKED
BANKS ADVISED TO USE EMER-
GENCY FUNDS.
Large January Disbursements = Re
vival of Talk Regarding Mergers
Important Railroad Deals.
Special Correspondence Of The Star.

Special Correspondence Of The Star.
NEW YORK, November 90. 1906
The money furry was the exciting and
sensational feature OF the stock market
this week. The rise in interest rates was
accompanied by a wholesale falling Of
loans throughout the Wall street section,
a proceeding which forced considerable
liquidation. Spectators very generally re-
duced their lines, although 1t cannot be
said that the broad market allgnments have
been materially changed by the experience
of the past ten days. The great mass Of
operators and investors who were bullish
at the beginning of the furry are. bullish
still. 1t does not make much difference
what the strictly professional element
think because It is likely to change It's
mind in thirty seconds from a radically
bullish to a radically bearish position and
back again.
The group of Standard Oil banks led in
the calling In of their money and complaint
was quite common that unnecessary ur-
gency was employed In many instances.
There were times when funds We're diff
cult to negotiate at almost any figure. 30
uncompromising was the banking front that
scores of commission and brokerage firms
shifted their loans to other cities. A very
large sum In the aggregate was borrowed
for New York account in Boston, Hartford,
Philadelphia. Baltimore, Pittsburg, Chicago,
st. Louis, st. Paul and as far west as
country banks throughout the whole inte-
rior were drawn upon literally. This plan
was so generally adopted that the New
York banks were given relief very quickly.
High Rates Attract Funds.
The lifting OF the pressure was plainly
felt by the middle OF the week. although
the opinion prevails that there Is small
likelihood Of a return OF really easy condi-
lions during the remainder Of the old year.
The high rates, or even the full legal rate.
maintained here for a few weeks Will at
tract funds in large volume. The furry OF
this week will undoubtedly start the return
moving OF crops. and altogether 1t may be
stated with confidence that there Will be no
long continuation Of interest charges on an
oppressive scale. such as would .embarrass
general business or seriously chill enter
prise. Purely speculative operations OF
great magnitude may bs held in abeyance
until after the distribution OF dividends and
interest on the first Of the year.
Most Of the market leaders and. a big ma
jority of bankers would like to see the
brakes kept on for another six or seven
weeks. and it Is not improbable that they
will enforce this policy. For few days
hardly pressed Wall street turned appeal
ingly to Secretary Shaw. but that function
airy did not seem to think the emergency
sufficiently critical to call for help or In
reference from Washington, although hold
ing himself ready to lend assistance should
the situation warrant. Some of. the leading
financiers of the street advised Secretary
Shaw that there was no occasion for Wash
fngton interference. and tina. If conditions
became irksome as much gold as might be
required could be imported from the old
world. $3.50 s.ssss.,4z 81 y a-S6s- s.
Some of the so-calIed conservatives in
Wall street pretend to be greatly shocked
over Secretary Shaw's suggestion that
banks dip into their reserves TO tide them
selves over the period OF stringency. If they
acted In accordance with the Secretary s
hint 1t would not be the first time such a
thing was done. The argument is used that
reserves are created not alone for the Sc
curity of depositors and creditors, but also
10 enable banks to meet emergencies just
such as now confronts them. There was a
time in New York. just eleven years ago,
when the entire list of clearing house insti-
tutions practically confessed insolvency.
Out of town depositors coud not draw
down their balances and clearing house
certificates to the amount of 1000, 900
were issued as medium of exchange be-
tween the associa ted ba nks