The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-12-29

Stocks Hold Their Own in the Face
of High Money Rate.
STANDARD ISSUES STRONG
MARKET WAS ACTIVE AT THE
CLOSE.

New York. Dec. 2s.1The organized
speculation in control Of the stock
market showed the courage of its con-
victions today by buying stocks and
putting up prices in face of rates for
call money at 100 per cent and above.
Large amounts were loaned on the
stock exchange at ITO per cent and
funds were placed outside the exchange
at 125 per cent. So long as money could
be had at these terms the rates were
determined not to be prohibitiVe of the
holding OF stocks on margin and they
were paid rather than sell out stock
holdings. They were paid also on the
assumption that the high rate may
hold or even be exceeded on the re-
naming days Of the week The argu-
ment was heard amongst speculative
operators that this year the rate of in
terest was well worth paying for the
day or two until the end Of the year on
the prospect that prices would likely
advance In larger proportion than the
daily amount Of interest reported at
this rate.
1t was asserted. with eager enthusi-
asm also that these few remaining
days OF stringent money would offer
the only opportunity for securing
stocks at the present level of prices.
Such was the spirit that dominated an
extraordinary stock market, which ig-
nored money conditions that have been
the signal for a panlcky unloading of
securities in the past experience Of the
stock exchange. There was something
OF scramble to unload stocks during
the early transactions in the market,
owing to an apprehension that it would
be found impossible to borrow money
on any terms. Probably the liquidation
thus effected caused some relief In the
money tension. The extraordinary in
terest rates also had their effect in
bringing offerings into the market from
many unexpected sources, some of
them Insignificant in themselves, in
Guiding small private deposit accounts,
but making UP a large aggregate. Some
banking funds were made available
from outside sources
The strictly local character of the
stringency is a remarkable feature of
the episode. Money on call at nearby
cities continues to rule at not over G
per cent. While good demand exists
for money throughout the country, this
contrast with rates paid on the New
York stock exchange offers an attrao-
ton to transmit funds to this center.
Rumors continued very persistent Of
contemplated measures of relief for the
money market by the secretary Of the
treasury, but the arrival Of that Of
hcial at Chicago confirmed the asser-
ton that such measures of relief would
be made dependent upon the finding
of evidence of the need outside of the
speculative centers. It was broadly in
timated. however, that the treasury de-
partment would adopt a tolerant atti-
tude towards the reserve requirements
Of the banks during the existence of
any crisis in the money market and il
was the general supposition that the
banks were awaiting themselves Of this
implied permission to encroach liberal
ly upon their reserves. There was an
urgent demand for time loans for the
shorter periods as well as for call loans,
and the commissions demanded to se-
cure sixty and ninety-day funds made
the interest rate equivalent to per
cent. This condition in the time loan
market opens a serious question as TO
the justification for the oYerweenfng
confidence in the speculative circles of
an immediate relaxation in the money
stringency after the first of the year.
The weekly statement Of the Bank Of
England disclosed an almost unprece-
uShtCNly weak COIlulI1On OF tnat lQSti-
tuition for the period Of the. year. and
the weekly return Of the Bank of
France was poor one. There were
constant rumOrs here Of the formation
of bankers pool to provide a fund
for the money market such as was
done m the crisis Of 1902 II was al
legged also that the banks had concert
ed an agreement to keep the rate of
standing loans at a fixed figure until
next week. These rumors were Of eff
feet on sentiment, but could not be con-
flrmed. The late relapse in the money
rate to so per cent was Of no signifi-
canoe, most demands having been sat
isfied before that rate was touched. but
the speculative confidence was main
tanned and the market closed ACTIVE
and strong. Anaconda Mining was a
sensational feature and other copper
and smelling stocks were conspicu-
Gus. but such stocks as Union Pacific
and New York Central kept up the rep
utation OF the standard railroad LIST in
the days movement.
Bonds were easy. Total sales. mar
value, s3,465.000 United States bonds
were all unchanged on call.