The Birmingham age-herald., 1905-12-29
Russell Sage Does Good Days
 Work in Money Market
CALL MONEY GOES SOARING
Loans Were Made Yesterday at 125 Per Cent, Although the Rate Dropped to 20 Per Cent
 Near the Close.

New York December 2S.-The call
 money market opened strong again today.
 The first loan reported was $200,0oO at the
 rate of 30 per cent per annum, and this
 was followed almost immediately by an-
 other loan of s2OOo00 at Go per cent
 At 10;S5 the quotation was 80 per cent
 The advance in the rate was sensationally
 rapid. From 60 there was quick advances
 to 75. 90 and then 100 per cent When l00
 per cent touched all records since
 1899 were broken. In that year 1S6 per cent was paid for call loans. After lend ing at 100 today there were loans at %
 per cent. The 90 per cent quotation did
 not last long, and at II o'clock l10 per cent was paid for funds, and shortly
 afterwards a loan of s4oo,oo0 at Ie5 per cent reported.
 Caused Little Excitement. Although brokers were compelled to pay
 the highest prices in years for cash in
 which to carry their stock there was little excitement over the situation Many exchange stock houses provided them-
 selves several months ago with loans to
 carry them over January l. which Is
 time when money Is always in demand for dividends, interest and other year.
 end settlements These time loans are
 not affected by the call money market. Some stocks sold out during tho
 morning hours. particularly industrials, but in the main stocks held we'll in the early trading considering the markets
 usual sensitiveness te money conditions. On the stock exchange the view was
 taken that the stringency is temporary
 and that easier conditions will prevail l immediately after January 1.
 Demand Began Early.
 The demand for money started within fif-
 teen minutes after the opening of bust
 ness. As a rule, nothing is said in money
 until after II o'clock. Today loan was
 made early at 30 per cent. This was re-
 garded effort to keep the rate down. Immediately afterwards bids were raised
 rapidly at 10 per cent between quota
 tions. A request for accommodation nj
 40 per cent brought no offering. Then the
 bid raised to 90 with no better re-
 suits The next was 60 at which figure a second loan was made, one of S200,O00
 No more money was offered at that rate.
 The third made at 70. Then the de-
 mand for money from brokers re-
 suit of heavy calling of loans by the banks in order To make arrangements
 for the January 1 disbursements became
 urgent and most of them were apprehen-
 sive as to whether they could renew their
 loans at all The call rate again climbed
 to 80. 90 and 125 per cent. The top rate yesterday was 95 per cent.
 The greater part of todays offerings
 came from out of town banks through
 their local correspondents. A great many individuals and commercial houses also loaned through their banks.
 Sage Loans $6,ooo,O00.
 Russell Sage through his representative was reported to have loaned $6,W000 at 90
 to 100 per cent More than the usual dis crimination was shown by the banks in the collateral accepted by them for loans. The rate for sixty and ninety day loans today was per cent. and a commission making such loans really equivalent 10 | 9 per cent. By noon the demand for money
 seemed to have been largely supplied. | At 12;3O loans were made at 65 per cent. | Toward 1 o'clock the demand for funds | seemed to have been pretty well satis-
 fed and money was lent at SO per cent.
 Just as soon as money tension seemed ! to have been released the stock market
 started to advance by sensational move- ment fin Anaconda. This stock rose rapid 1 ly to 275 against 239 earlier in the day.
 There was no definite news to explain
 thls advance except the reports of rich strike in the company's mines. Amal-
 gamated Copper was carried 212 points in sympathy owing to its large holdings of Anaconda and other copper and smelting stocks were also strong.
 After having reached 110 per cent on the
 stock exchange and at 125 per cent
 privately arranged loans. the rate for call money late this afternoon fell to 6
 per cent. Just before the close it advanced again and closed at 15. bid. offered at s0.s
 As the money rate fell the stock mar ket advanced and approxima tely the high est prices of the day were reached at the close The stock market except for an early decline in industrial shares
 steady throughout the money tension. Hepburn Makes Statement.
 President Hepburn of the Chase Nation- al bank said today:
 "The enormous volume which obtains throughout the country is making a
 strong demand upon the banking power, and naturally has materially advanced the ra tes of interest. The foreign exchange
 credit which the country would normal
 ly make. Is curtaled by the shortage of
 cars which prevents the rapid marketing
 abroad of cotton for higher prices. Nor maIy we would anticipate such exchange by our credit abroad, but Europe has troubles of its own. The Russian cloud hangs over the markets. possible de- fault in the interest upon the enormous indebtedness of Russia has seriously dis
 turbed Berlin. holds Paris in anxiety, and of course exercises strong reflex in- fluence in London. Money has been s and 10 per cent in Berlin and unusually strong in other centers.
 Hence we are called upon to finance our great volume of business practically with our own resources 1t is fortunate that at such a time and under such cr- cumstances that prices of listed securities
 should be consistently advanced day by day. It has added to the money strain and is primarily responsible for the high rate
 of interest. Stocks of worthyl would have | found higher level in a normal manner | without creating unusual strain. and without conditions fraught with possible l danger"