Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-27
Rate for Time Leans Reached
80 Per Cent Today.
ILL FEELING AROUSED
OVER TEN MILLION LOANED BY
ONE BANK TO SINGLE BROKER.
Maximum Figures Were Far in Excess
of Those Quoted Yesterday-Other
Transactions Overshadowed.

Special Dispatch to The Star.
NEW YORK, December 27.-Before the
noon hour today money call loaned as
high as 30 per cent. The renewal rates on
standing loans ranged from 30 to 50 per
cent. The bulk of the days borrowing was
effected between the extreme figures
quoted. 1t is difficult to treat the prevailing
conditions in the money market with pa
thence or moderation. To very large ex
tent they reflect manipuative practice of a
particularly sordid nature, and there has
seldom been a time when the conditions
prevailing in the money market have
aroused so much personal feeling and ndi
ridual denunciation
One large ma tional bank was lender in
yesterdays market of more than $4,000, 600
through n single broker but the latter was
plainly instructed to squeeze the last one
per cent out of the unfortunate borrower
who might be in need of his services.
Whether in lending this money between
20 and 30 per cent the bank In question
encroached upon its legal reserves is of
no special Importance, but inasmuch as
the money was furnished by the bank it is
perfectly plain that 1T could have been put
out at II or 10 per cent as easily as at %
and 80 per cent, and had ii been, such rates
would not have been quoted, to the dis
grace of New York's reputation a
money center.
Todays maximum figures in the money
market were indeed far in excess of those
quoted yesterday. Fortunately for the
stability of the market for securities, only
limited period remains in which such
conditions are to be reckoned with. There
was nothing very novel today relating to
monetary affairs. which were indeed suffi
GENTLY accounted for by reason of the
weak position of the associated banks, to-
gether with the period of the month and
of the year.
Transfer of Currency.
on account of yesterdays transfer of
currency the banks increased their aeficit
in their operations with the subtreasury to
$23SS,OO0, AS great deal of the lending
OF money upon the stock exchange this
week has been by non-clearing house in
sututions and, for that matter by indt-
viduals, it is not improbable that the loan
account in Saturdays bank statement may
show reduction sufficient to offset the loss
in cash so far as surplus reserves are con-
cerned.
Definite intelligence regarding the latter
was, however. followed by lively arbtrat-
ing transactions between the old securi-
ties of the stock exchange and the new on
the curb market. Metropolitan securities
suffered severe decline on the publication
of the terms of exchange for that stock
but the other issues were not materially
anected. The stock market opened with an
uncertain tone, and later broke from to
points for the active stocks, with sub
stantial rally appearing early In the after
noon. In addition TO the furry in the
money market, dealings in securities were
uulaNoraDly aHeCteQ by the banking trOu-
bles reported from Memphis and by the I'M
satisfactory response which the London
market for American stocks gave to the
rise in prices In the local dealings dur
ing the time that the foreign markets were
closed over the Christmas holidays.
The London Market
The main feature of the dealings In the
LCncon market was the sharp recovery
IN Russian bonds. based presumably upon
the success of the government authorities
in Quelling the various disorders in that
country. Operations here for foreign &C
count had trifiing net results. After all IL
said, the main influence of the days none
tary conditions, and of such other matters
as occupied attention, was decided cur
tailment in respect of activity.