New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-06

Stiff money rates served to check speculative
activity in yesterdays market for securities
while they encouraged moderate ventures on
the short side of the account, without. how
ever producing important results. Declines
when made in the active issues were confined,
as a rule to small fractions. while the same
thing may be said of advances, the only i'm
portant exceptions being American Smelling.
which gained over l per cent; Colorado Fuel
and Iron, which gained IL per cent, and Penn
sylvania which gained l per cent. The general
course of values exhibited great frregular'ty
throughout the day, but the movements were
not accompanied by news developments aHectlng
the actual worth Of the securities, and little
interest was taken by the larger spectators in
the market At the close net gains and losses
were about evenly distributed Of the total
dealings. amounting to upward Of 541,OOO
shares the heaviest part was supplied by Anal
gamated Copper American Smelling Brooklyn
Rapid Transit, Canadian Pacific, Erie, Penn
sylvania, Reading. Union Pacific and the Steel
shares Call money touched s per cent ruling
at Gu per cent, while foreign exchange was
weak being affected by the strength in the
money market. In ordinary periods a call
money rate of 8 per cent would cause uneast-
ness in Wall Streets speculative circles and
cause liquidation the Stock Exchange, but
in the present case there appears to be so
dence in the theory that no matter what hap
pens to the money market prices for securi-
ties will advance that the greater number of
people in Wall Street refuse to be disturbed by
the low position of the New-York bank reserves
It may be added that the big have the
stocks and THAI they cannot allow any dis
turbance in the stock market at this period.
Powerful influences are at work to maintain a
nigh level for securities. Otherwise s per cent
bear element
While rates for call money presumably will
rule high for the next thirty days, there are in
dications that rates for time funds may soon
recede BY the first or second week in Novem-
Der the requirements Of currency for handling
the crops for the most part will have been met,
and accordingly the banks are beginning to
range for the subsequent employment of their
money. In a period of great activity in money,
as in the crop moving season, there is more
profit for the banks in putting their funds out
on call than on time but in other intervals there
is an advantage in having their money invested
in time loans. Since the middle of August the
local banks have curtatIed their time loans. but
applications for such loans are now receiving
more consideration, and the next development
naturally win be concessions in rates on the
longer naturities. With. the probability that by
the middle Of January there viii he a surfeit OF
cash low quotations for time loans are in pros
pect and IT is believed that within the next
thirty days there win be an important decline
in rates. At this particular iuncture the in
ouiry in great part is for three months loans
which carry borrowers up to the inception Of
what is expected to he period of especially
cheap money. Thirty day loans are sufficient TO
tide over any possible pinch in the money mar
ket. but no real stringency is looked for can
money rates naturally will fuctuate more or
less for several weeks TO come Higher quota
tions than the & per cent level reached this week
may be recorded and the position of the mar
ket may for q time discourage the bulls in the
stock market, but according 10 the views Of
the leading bankers in the Street there will he
no panic in the money market. 1t is conceivable
how, under the influence of manipulation rates
for call loans may he advanced to a prohbtiye
level, as they were several years ago when
certain banking interests were anxious to bring
about lower prices for securities, but at this
time the banking interests are espoused to the
bull side of speculation. and they naturally are
not anxious to see acute disturbance in loans
The larger holders of securites-that IS The
holders who carrying securities on a specl-
lative bass-have not yet given any sign of an
intention to sell One Of these days they win let
the public have their shares and then there
nated prices that have been brought about by
the advance Of the last few months Stocks are
not cheap from the investment point OF view,
Doubtless quotations will sell higher before gen.
eral liquidation sets in, hut the investor would
better at this time place his money in the saw
ings banks and wait for better opportunity