The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-11-14
The Money Market.

- There are several things the treasury
might do to ease the money market and
hold down call-loanS rates in New York.
One, tbang would be to anticipate inter-
est payments on government bonds,
due Jan. /. It is. not. likely this will
be done, as the situation does not APP
pear to call for governmental help, in
the Judgment Of the: secretary. Assum-
ing that the attitude of the secretary
remains unchanged, and that no gov
ernment. funds are deposited in the
banks, there would still remain two
possible factors; for relief; gold imports
and stock, market liquidation. With ex-
change rates as they now are, engage
ments Of ;gold in Europe for, shipment
to New York would not be surprising.
AS, for stock; market: liquidation, that
has been witnessed for the past several
days.. There have been no severe de-
clines, but rather the slow wearing
away Of prices from the continued let
ting 60 of stocks by speculative hold
ers, who had them bought on margins,
hoping to. profit by a rise, and who
could afford to carry them on borrowed
money. at 2, 3. or 4 pei. cent, ordinary
rates, but are compelled to let go when
called upon to pay 49, II or 90 per
cent? :J-2isH $50, ,s.i:s..e st
The highest money rate seen in re-
cent years was the quotation of May 6,
1901, when call money was quoted at
of bo
famous Northern Pacific "corner.' A
year later to the dot, as if in commem-
Grafton of the price slaughter of the
"corner,' rates ran up to rs per cent,
and in September, 1902, IS per cent
was heard, and that was only<a momen-
tary figure. and thru the entire year
1904 mo- higher. rate than per cent
was recorded. -, 80 ~'' 4 80
There is an argument on the side Of
assurance, to the effect that the high
rates in New York will draw money
that way. This is entirely reasonable
the thing indeed to expect. If rates
hold at even 10 per cent for call loans
for any length Of time, money is GER
tain to move in, for such rates are at
traetive. But tits gross: error to use
this as an argument for general quies
cence IN in money, for the interior has lit
! tie to- spare, -; Certainly the northwest
with its country elevators holding thu
! largest grain stocks on record, which
represent borrowed money, and genera
business on scale not less than 90 tt
rs per cent heavier than year ago
can spare no money for the east.
This then is no doubt the iudgmen
of Secretary Shaw-that the. east will
begin to draw in money, and unless re
lief appears in, some other form the ives
will feel the difference in the supply
Then, IF Sthessbanks in the interior"cities
where there is little speculation, begi1
to complain Of inability to obtain fsiuf
ficient money to care for legitimat
business, the. secretary will help then
out with government money. His an
nouncements have stated that. he vii
not respond to Wall street IS call. bu
will do what he can to help business in
terests in event of later complaint. H
{ feels no. doubt there is yet long pu1
before the country and that for som
months at least money cannot tur
easy, as the country is doing too muc
business Henee emergency mea:
ure Of Relief hads bettsr be held in han
for = real 1emergsnaey andnot wasted .
mere stoek-market eonting ency... i