Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-28
FURRY IN CALL MONEY
SENSATIONAL ADVANCE OF Rate
ON CHANGE TODAY.

NEW YORK. December 2s-The call
money market opened strong again today.
| The first loan reported was 100000, at the
rate OF 80 per cent per annum. and this
was followed almost Immediately by an
other lean OF 100000 at GO per cent
| At 1895 the quotation was 80 per cent.
The advance In the interest rate was sem
sationally rapid. From co there was
quick advance to rs. 90 and then 100 per
cent. When 100 per cent was touched all
records since December 1899 were broken
In that year 1s6 per cent was paid for call
loans After lending at 100 today there
were loans at 30 per cent The % per cent
quotation did not last long. and at IL
O'Clock no per cent was paid for funds.
and shortly afterwards loan of s4oo,oo0
a. 10 per cent was reported
Highest Prices in Years.
Although brokers were compelled to pay
the highest prices in years for cash with
"hich TO carry their stocks there was little
excitement over the situation
Many stock exchange houses prnvidea
themselves several months ago with time
loans TO carry them over January l. which
rs time when money is ALWAYS in great
demand FOR dividend interest and other
year-end settlements
These time loans are NOT aracta5 nv a..
call money market Some stocks were sold
out during the morning hours principally
a.; ao th but In the main stocks held well
IN the early trading, considering the mar
kets usual sensitiveness to money condt-
tons @''"
On the stock exchange the view was taken
tnat the strlngency is temporary. and that
easier conditions will prevail ImmediateIv
after January /.
Demand for Money.
The demand for money started within fr
teen minutes after the opening of business.
AS rule nothing is said In money until
afler IL o. clock. Today a loan was made
early at 80 per cent. This was regarded as
an effort to keep the rate down Imme-
dlateiy afterward bids were raised RAPIDLY
d. ~ per cent between quotations. re-
quest ior accommodation at 40 per cent
brought no Offering. Then the bid was
raised to 90, with no better results The
was made. one of $4,000. No more money
was made at 20.
Then the demand for money from brokers.
as result or heavy calling of loans by
the banks In order to make arrangements
Tor the January 1 disbursements became
urgent and most Of them were apprehen-
| siye as to whether they could renew their
loans at all. The call rate again climbed
rapidly to 50, 80 and 125 per cent
Top Rate Yesterday.
| The top rate yesterday was a5 per cent
| The greater part OF todays offerings
came from out-of-town banks through their
| local correspondents great many In
dividual and commercial houses also loaned
| through their banks
Russell Sage. through his representative,
was reported to have loaned S6OO0.OOo at
10 to 100 per cent More than the usual
discrimination was shown by the banks
| IN the collateral accepted by them for
| loans. The rate for 90 and 9O-day loans
| today was per cent. and commission"
making such loans really equivalent to
| per cent: by noon the demand for money
seemed to have been largely supplied At
ESQ loans were made at 30 per cent
Toward o'clock the demand for funds
seemed to have been pretty well satisfied
| and money was lent at 60 per cent Just
| as soon as the money tension seemed TO
have been relieved the stock market start
! ed to advance. led by a sensational move
ment in Anaconda Mining. This stock rose
rapidly TO 215, against 239 earlier In the
day.
There was no definite news to explain
| this advance, except the reports of a rich
strike in the company's mines A1nalga-
mated Copper was carried up 21s points
In sympathy owing to its large holdings
ing stocks were also strong
Bank Presidents Views.
President Hepburn of the Chase National
Bank said today:
The enormous volume of business which
| obtained throughout the country Is making
a strong demand upon the banking power,
and naturally has materially advanced the
rates of interest. The foreign exchange
credit which the country would normally
make Is much curtailed by the shortage of
| cars, which prevents the rapid marketing
abroad of cotton and grain, and also by
the concerted Withholding of cotton for
higher prices. Normally we would antici-
pate such exchange by our credit abroad,
but Europe has troubles of It's own.
THE Russian cloud hangs over markets
A possible default in the interest upon the
enormous Indebtedness of Russia has seri-
ously disturbed Berlin, holds Paris in anx-
1ety and OF course exercises strong re-
fiex influence in London. Money has been
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 unfortunate that
at such a time and under such circum-
stances prices OF listed securities should
be persistently advanced day by day. 1t
narily responsible for the high rates of
interest. Stocks OF worthy would have
found higher level in a normal manner
without creating an unusual strain and
without causing conditions fraught with
possible danger"
At 215 pm. call money was quoted at
80 per cent.
After 2:15 the call money market became
much easier and dropped rapidly to 20 per
cent. From 20 per cent there was d further
drop to per cent, and at PAS o'clock the
quoted rate was Gallo per cent
Cleveland Money to New York.
CLEVELAND, Ohio, December 2S.-The
Cleveland News today says that 1t learns
from reliable financial authority that
Cleveland bankers have sent large sums
of money to New York recently to be
placed for call loans, and that they now
have between S7.0O0,0O0 and $S,Ooo,OOo there.
One bank alone is said to have sent $1,000
OOU and another S2,500,0O0
PEACE IN COLOMBIA