The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-28
CALL LOANS AT
90 Per CENT
Wall Street Suffered From
Financial Stringency.
HIGHEST SINCE DECEMBER, '99
Du Started In al So and Rate Jumped
Fast-Ns Help From Outside.
No Failures.
HIGHEST SINCE DECEMBER, 's9

New York. Dec 2s.-The financial strln-
sency in Wall street. manifest since the
beginning OF preparations for hrst OF
January payments. became so acute yes
terday that call loans brought 80 per
cent. i've minutes before the close OF the
stock exchange
The quotations was the highest since
the days of December. 1889. the time OF
the London Barring panic" when It
reached 1885, the highest on record. II ex-
ceeded by Is per cent, the highest quo
Northern Pacific corner. May Q, 1901, and.
according to bankers, was unprecedented
except in panic times on the exchange
Leslie NJ. Shaw OF Iowa, who has been
requested TO afford relief, was in town
all day. but as far as known did nothing
TO relieve conditions.
He called at the custom house and the
Sub-treasury In the morning. but refused
20 discuss the conditions prevailing In the
market
SHAW ON PLEASURE TRIP.
Il am not talking business on this
trip" he said. II am here for the day
only. having good time with my son
and four nephews.
Hippodrome and lots OF other places. but
we're not going to do business / go to
Chicago tonight after the theatre
The last loan made before the closing
Tuesday was at the rate OF IS. after an
advance during the day from Is.
There was an impression that this high
rate might call out sufficient money TO
loan at that or easier terms by yester-
day's opening. but there appeared little
indication OF II when the first quotation
appeared at 36 and then advanced to 40
and 45 These rates prevailed during the
morning hours but shortly before 2
o'clock a loan was made at So and min
ute later one at IS. There was no lower
rate from that time 10 2:55, when the
price jumped 30 points from the mark
registered at 2:30.
A PURELY NEW YORK BOOM.
Not until the high mark was reached
did the opportunities for profit avail to
call out sufficient money to meet the
demands. But then there was an influx
which battered the quotation down 40
points in n very few transactions and
there was enough left to make 25 the fig
ure for III, closing loan OF the day
Chicago was OF no assistance to the
anxious borrowers The banks there have
trouble-eHeuRh- with-theif- affairs
since the Walsh crash and very little help
expected.
In Boston. the rate was no higher than
10 per cent. and n Boston banker was
quoted as saying that he would like TO
lend money at New York rates. but for
some reason no help came from that quar-
ter. II was a purely New York boom I'm
the value OF money and the bankers OF
other cities apparently left II for New
York to care for.
The excessive high rate resulted Il
was conceded. I'm a practical exhaustion
OF the surplus OF New York banks over
and above the amount required for the
legal reserves and for the protection OF
favored customers. For the depletion Of
funds both the active speculation and the
demands OF business are responsible.
NO FAILURES REPORTED.
The customary calling in OF cali loans
accompanied the increase in the rate. and
some persons were reported 10 be more
than little embarrassed Nevertheless.
the day passed without a single failure
and with a market which, though II fell
of somewhat closed generally strong.
The good tone OF the market despite the
tightness Of money, was generally con-
sidered the strsngest feature OF the day.
The large banks renewed loans at 35
per cent. and complaints were not nu-
merous. large number OF new loans
was made. In this way old customers
acted rs competitors OF the banks them=
selves. securing from them money which
might have been loaned more profitably.
Release OF money held by Stockholders |
Of election bets was an interesting though |
not especially Important development of
the day. The money was released only
on urgent pleas from cramped borrowers |
and ~ every case was handed over under |
protest and with the understanding that |
the delivery did not constitute adjudica-
tion OF the wager. Something like 81 000 |
000 II was believed was held by stake |
holders. Only a portion Of It was given |
Up.