Los Angeles herald., 1905-11-10
BY Associated Press.

NEW YORK, Nov. 9-The stringency
in the money market today developed
considerable severity and weakened the
stock market accordingly. The high rate
demanded for call loans offered little at
traction for the carrying of securities on
margin and prompted considerable pre-
lminary liquidation. Especially at the
low rate of return offered by many
stocks at the high price level now ruling
the high call money rate proves burden
some for marginal holders. With the
heavy drain on the cash reserves of the
banks and their consequent reduction
towards the legal reserve limit the banks
cutting down the deposit account by the
withdrawal of some OF their outstanding
credits.
was on q large scale and the seeking of
fresh accommodations on the part of
those thus displaced caused very ac-
tive money market and some forced
liquidation of stock holdings. The rate
of IS per cent touched during the day
had been reached only momentarily, and
that but once in March, 1903. since De-
During the early hours of the day the
presence in Wall street of the secretary
OF the treasury gave rise to confident
assumption in speculative circles that
government measures for the relief of
the money market were in contemplation.
Such measures will presumably take the
form of deposits of portions of the gov
ernment surplus revenues at the banks
This confidence prompted some of the
holders of securities to defer the renewal
of loans called during the morning with
the idea that a later announcement of
the government measures to be taken
would cause an easier tone in the money
market. No such announcement was
forthcoming and disclaimers We're made
of any purpose to take such steps, with
the disappointment of the earlier hope
that there was something like a rush
among belated borrowers. This was said
to account for the severity of the strin-
gency developed.
in large volume, 100000 being deposited
at the Sub-treasury for transfer to Chi
cago and New Orleans. About half as
much was received from San Francisco
Foreign exchange weakened decidedly
under the stress or the local money sit
uation and New York exchange at Chi
cage also recovered sharply. All three
of the great European banks at London,
Paris and Berlin showed very strong re-
Cuperation, although the money market
at those centers showed no relaxation.
The time money market here was called
firm, but there were practically no trans
higher ruling rate for call loans divert
ing all available funds to that depart
ment 1t was said that considerable re-
payments are now being made of mer-
camille borrowings made earlier in the
year to make purchases of commodities
in anticipation of the very active fall
trade.
In connection with the talk of relief
for the money market by the United
States treasury it was pointed out tina,
the government bond refunding, under
the offer of the secretary of the treasury
has come practically to standstil al
though the refunding thus offered opens
the way for considerable expansion of
the note issue privileges of the banks
The failure to take advantage of the
opportunity would be likely to constitute
an argument against Offering other IA
ciities or the part of the government
officials.
DuringS the frequent rallies of the early
part of bday Reading and other recent
speculative favorites were bid up sharply
and at one time, when, the presence Of
reported, the average level of the whole
market rose above yesterdays closing
Last prices, however, were but slightly
above the lowest and showed net de-
clines of 1 to over 8 points throughout
the list.
Bonds were heavy. Total sales, par
value. 1886, 900.
United States new As declined z per
cent on call.