The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-12-21
SQUALLS IN MONEY MARKET
High Interest Rates Prevail for
Good Coin
SHAWS EFFORT WAS UNkvaIL|HG
OFFER FROM TREASURY is TOO
RESTRICTED AND TEN MIL
LIONS NOT ENOUGH.


the banks is of little avail, because Of
it's restricted amount and scattered
character His offer, too, of 100000
! 600 for the purchase Of 1907 bonds is
also of insufficient assistance for
similar reasons. With the approach of
January 1st, preparations will be in
order for unusually heavy dividend and
interest payments. These funds WILL
of course quickly find their way back
to the money market, but the advance
preparations are likely to enforce con-
siderable shifting of loans. So, too,
will the preparations for the final in
stallment of l per cent or $10,OOO,OO0
! for completion of trust company re-
| serves, which must be made by jan
uary 1st The local banks have again
| lost heavily by the weeks currency
movement; suggesting a further en-
! largement of the deficit unless there is
| a contraction of loans or replenish-
ment of reserves by some other means
There has been much complaint about
/ the rates upon call loans, which have
apparently ruled higher at times in
| consequence Of manipulation by some
| of the lenders. High interest rates
are just now very profitable to banking
| institutions as shown by the increased
| or extra dividends announced by banks
and trust companies.
| The possibility of gold imports is
again being discussed. The Bank of
! England our first source Of supply,
has strengthened its position during
the last few weeks and is expected to
receive at least $1O,00o,OOO of gold in
! the month of December. Brazil and
Argentine may require fully one-half
of this, leaving the bank at least $5,-
100000 better off than a month ago.
Other demands upon the Bank of Eng
land are supposed to be held in abey-
ance for the time being, so that the
possibility of procuring help from that
quarter is somewhat better than it at
one time appeared. American finance
bills are again being placed in London
fer the purpose of relieving the tension
in New York Efforts, however, to
are not entirely satisfactory. They dis
! triLutc, l2ut 90 net lessen the load now
| plaoeG upor 20 credit situation, which
| is F,.:?-5 &C. stant,y aggravated by new
ler2crds. As repeatedly intimated in
| these aGvices, there is only one proper
! cure for present conditions, and that
IS liquidation such as We are now hav-
/ ing. Should the market continue to
| take this course, the effect will fall
most heavily upon some of the cliques
and pools which have been carrying
securities for a long period. Fortu-
nately the public is not in the market
| to any great extent. Prices of many
of the active stocks are now SO high
that investors will not touch them and
! spectators cannot because carrying
charges are too high, while the risk is
| considerable in operations for either
the rise or the fall Stock market
movements nave practically come to a
deadlock so far as concerns specula-
; ton in the better class of securities.
h1I1 Of in, Of
| strong holders, who will not sell while
business conditions continue as they
are. The weakest point in the market.
| therefore, is in the situation of old
pools and syndicates which are still
carrying considerable sums of securi-
ties on borrowed money. Upon these
the strain of a stringent money market
will chie3y fall. AS said above, there
! is no prospect for material relief in
| the monetary situation for some time
to come. At the first signs of improve
ment after January 1st, we shall prob
ably see a number of new calls for
capital, especially from our big rail-
| road corporations, which have under
aiken improvements that must be COM
pleted in order to handle existing traf-
fic. The output of new securities is
going on at a tremendous pace and
shows no signs of cessation
Stocks continue to act in a peculiar
fashion. The announcement of cool
selling and declines. Only those en-
joying advance knowledge of new deals
have any opportunity for profitable
turns. The Hill melon, for instance,
was followed by a sharp drop; so, too,
have nearly all other announcements