Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-11-14
NEW YORK. STOCKS AND BONDS
Bank Deficiency Sends Call Money Rate to
Twenty Per Cent.
RISE CAUSES DIP IN PRICES
shares Thrown On the Market
Are Quickly Absorbed at Lower
Level and Rally
Ensuea.

NEW YORK, Nov. lathe banks OF which
the deficiency OF reserves brought the aver
ages reported in the Saturday bank state
ment below the per cent limit required
by law were under legal constraint to re-
duce their outsta ndinR loan. This they
promptly decided to do today and threw
upon speculative borrowers the necessity
for liquidating their holdings Of stocks I'm
order TO respond TO the calls for repayment
or Of borrowed money. The rate for call
cent and very large sums were lent at that
rate. As consequence there was a htfui
liquidation of stocks most OF the day. on
the dip IN prices caused by the outpourinR
OF liquidation there was buying of an inn
pressive and substantial check so that the
course OF the market was held we'll in hand
at All times and the necessary liquidation
conducted without any appea rance Of
fright The intervals of relaxation of the
pressure upon the market brought rallies
IN prices, but the demand was not inclined
to follow the recoveries and the rallies
brought dizziness in the trading.
The stringency I'm the money market was
greater than at any time since the autumn
OF 1902 and this induced a disposition to
draw parallel between that and the pres
ent period. This disposition was encour
aged by the fact that the general suppose
ton regarding the recent speculation in
the market attributes it largely to
wealthy class of spectators who have per-
sistently ignored the warning Of the grow
ing contraction of the money supply and
have protested undated confidence in the
suftciency OF their resources to sustain
their speculations in the stock market. In
this respect the stock market OF 1902 was
similar and the fact that the speculation
at that period came to a disaster suggests
conclusions unpleasant from the present
standpoint of speculation. But the contrast
with the 1902 period, must take account Of
the constant shrinkage in industrial and
commercial activity at that time the in
huence OF the great anthracite miners
strike of the beginning of the Northern
Securities litigation and the effects which
were still felt at that time OF the previous
enormous output of corporation securities
and the resulting market indigestion which
was the leading CHARACTERISTIC o. It's period.
None of these unfavorable factors has an
exact parallel in the situation at this time.
| Confidence in the prosperity and stability
| OF general conditions Is quite universal.
| This must account for the material support
which developed for the market on any
| substantial declines and which was clearly
| in evidence in the character of the buying
| on declines today. In spite of the lofty
| flights in the money rate rumors persisted
| of some early measure of relief soon to de-
| velop. These consisted for time OF reit-
Grafton OF reports that the treasury depart
| ment was to intervene. but the official an
| nouncement of Secretary Shaw's indisposi-
| ton to take any measures until convinced
that business interests as distinguished
| from speculation are likely TO suffer, offset
| the effect of these reports.
| The violent fall in the foreign exchange
| rate gave rise to consideration of posi-
/ BILE import movement of gold, making a
| sudden reversal of conditions two weeks
| ago when possible exports were under dis
| cussion. Whatever may be the outcome
/
| for money were effective in inducing the
| placing OF very heavy sums in the loar
market for the account of foreign capital
| Not only call loans but time loans for tbs
sixty and ninety day periods were affected
| by the money stringency today, commits
| sions for securing loans for those periods
| bringing the rate OF compensation for the
use of the money well above per cent.
| The substantial recovery in the market
! was due to the good effect of the rate
afforded to the money market by the breal
in sterling exchange. The late rush ir
| the money rate up to 70 per cent was no
regarded as normal any more than thu
sudden relapse to per cent, but the effec
was unsettling on the closing tone whicf
was irregular. but with some prices at the
highest point of the recovery.
Bonds were weak. Total sales, par value
49, 735, 600, United states 3s advanced y
and the old As Il per cent on call.
The following were the quotations on TIT
New York Stock exchange: