The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-12-13
BACKWARD TURN
IN THE MARKET
Further Advance in the Rates
for Call Money Given as
One Reason.
SEVERAL OTHER FACTORS
CLOSING WAS EASY AT GENERAL
DECLINES.

New York, Dec 12-The advance in
prices of stocks wavered. then came TO a
halt and finally turned backwards again
today. There was some natural realizing
on yesterdays considerable rise, which
served partly to account for the reduc-
ton. There was besides further ad-
vance in the rates for call money and less
confidence as a result in the adequacy
OF the assistance Offered by the treasury
department to carry the money market
through the converting demands OF the
January settlements. With the reaction
IN the market there was some ShrinkaSe
in the rate of activity from that OF yes
terday. There has been no actual employ
ment of the funds included Ill the treas
ury's offers yesterday as none of it has
come into possession of the banks owing
10 delays in the securing and acceptance
Of bonds for security for deposits and the
formalities required to sell US per cents
under the treasury plan. The liberal OF
tering of funds yesterday were thus 10
some extent use Of the expected IN
crease in resources before they were in
hand. This disposition on the part of the
active speculation TO lick up funds as
fast as available comes in for its share
Of criticism.
1t is also true, however. that the SEN
Ufnental effect of the action Of the treas
ury authorities was to release sums which
had been held out of the money market
for higher rates and which was thus
brought out. 1t was new requirements
that stiffened up the rate again today.
The practice of holding funds out of the
market for higher rates is one of the
counts in the Indictment that the discus
sion amongst stock brokers rs making
against the banks TO account for the eX-
cesSiVe call loan rates recently preV0-
lent. This discussion continues active In
the financial district with accusations on
the one hand of manipulation and usurl-
Gus interest charges and With explanation
and defense from the brokers.
The large loans placed here for account
of banks outside the city usually involve
q displacement of a loan by a New York
deposits here or instructs its correspond
ent bank here to place the loan az the
highest level. This Is given the blame
for part of the disturbance III the money
market by some of the bankers and there
has been an effort to secure concerted &C
ton amongst clearing house members to
regulate this lending of money for ac-
count of out Of town banks II IS the
assumption that the compensation TO the
local banks for placing such loans is IN
the form of a commission which WOulo
add. however to the burden of the Dor
rovers. Reports were received III W ali
street today that some of the interior
banks We're dislnclined TO accept the PROF
fered government deposits. The Shor;
time fixed for their being held and the
difficulty Of securing bonds for collateral
were offered as an explanation or TINS at
titude but it served TO create an lmpres,
siOr that the eagerness Tor 3ddltlona
from New York as here.
Preparation fos the $l00O0,O0 STANDARD
Oil dividend on Saturday and of the SO
90 COO subscriptions to New York Central
stock on Monday were said 10 be under
way today, requiring some large ealing OF
loans with resulting recovery IN the mon
~ rate. The long expected announcement
Of subscription rights to new Great North
ern preferred stock and the quotation foi
IL rights in the outside market was toi-
loved by violent decline in that stock
which chilled speculative enthusiasm over
-tEer expected Developments. The increase
In the Pittsburg. c. G. x st. Louis diyi-
bend was without influence or any stock
Tho money markets were harder in Lon
don. Paris and Berlin today, put foT-
ign exchange rates here reacted in re-
sTCnse 20 our own Stronger money mar
ISet There was considerable Increase q
selling pressure on stocks late in the day
and the closing tone was easy at genera
declines.
United States IS advanced u per cen
on call