The Washington herald., 1906-12-06
Stringency in Wall Street
Greater Than Oh Tuesday.
LOOK TO SHAW FOR RELIEF.
Traders Expect Aid 10 Relieve Mar
ket Soon, Owing TO Position Taken
by the Secretary in His Annual Re-
pOrt-Increase OF New York Central
Dividend Rate Was Ignored.

cy in the financial district was greater
than It was yesterday, and although it re
suited in depressing quotations of stocks
little below their yesterdays closing level.
it did not produce as much general weak
ness in the market as it did yesterday.
and the hrmness of the market under the
trying conditions that were experienced
was a matter for general comment.
The opening rate for call money was Is
per cent, and It slowly advanced from this
figure until it touched 81 per cent in the
later afternoon. Loans in dribbling guam
titles by a single national banking institu-
tion at per cent were. of course. without
any effect whatever upon the ruling price
of funds.
Time money rates were again no more
than the subject of nominal quotation, as
there is very little time money offering at
any figure. Bids were made. however, of
per cent for money for sixty days, and of
7 per cent for loans running through as
long periods as FIVE omnths,
It was said in banking circles that the
high call and time money rates during the
present week had not resulted. as they
have hitherto. in bringing offers Of funds
from interior cities. The local banks
made yesterday much larger losses than
We're expected to the subtreasury. the
drain amounting to S2,661,O0O, and the
banks have lost to the subtreasury dur
ing the week thus far 50, $4,000
Money Sent to New Orleans.
Four hundred and seventy-fve thousand
dollars was to-day sent from this city TO
New Orleans through use of the govern
ment facilities. so that it is certain that
the cash balance of the banks has been
heavily reduced from a week ago.
II may be said that one reason for the
tightness of money rates that has recently
prevailed is not only the shifting OF
funds" covering the December / disburse-
ments and the withdrawal OF money from
this center for Southern and Western use,
but the fact. not generally known, or. at
least, apparent, in Wall street. that Amer
lean borrowers of money in the London
market have notified that about S25,0UO,0OO
Of loans made there by them and matur-
ing January i Will not De renewed
The collateral in question is said to be
unQuestionable and such as viii readily
serve as collateral for loans in this cOun-
try. but the local extension Of credit thus
involved will cast additional burdens upon
the home money market.
The stock market seemed to be buoyed
up to-day, even more than was the case
yesterday by the hope that strong meas
ures of relief for the money situation
would be put in force within the next
twenty-four hours by the Secretary Of
the Treasury.
Not Concerned About shaw
Dispatches from Washington reported
4E,s4 h. M
regard the money situation in New York
as such that alleviation at his hands, and
in banking circles the belief was not en-
tertained that the Secretary would, in
the near future, at least. do anything TO
make money plentiful
It was, nevertheless, persistenuy assert
ed throughout the day on the floor Of the
Stock Exchange and elsewhere that the
Secretary Of the Treasury would almost
Immediately put a large sum of money
into the banks, and predictions Of this
kind though they did not result in par
ticular advances in stocks, prevented
any declines OF consequence
one reason for the impression in Wall
street regarding the likelihood Of finan-
cial help from Washington was undoUbt-
edly the decision Of the currency ques-
ton in the Secretary Of the Treasury
annual report, published during the
morning hours Of business. in which was
found a declaration that the Secretary
would place with the national banks as
much rs could fairly be spared Of the
Treasury's $7S.0000l0 cash balance now
resting in the physical possession of the
government, if legitimate business cOndi- /
tions OF the country warranted.
Bankers and fnanciers concerned them
selves very little to-day about Secretary /
Shaw's expression Of his general financial
views X is expressing the matter mod
eTately to say that the suggestion Of Mr..
Shaw that a fund OF 100000 should be
set aside by law for the purpose of being
deposited and withdrawn from the ma
tiOnal banks by the Secretary of the
Treasury at will, so as to make the money
market easy or tight according TO the
Secretarys discretion. was regarded as
absolutely preposterOus.
Rate Increase Ignored.
Neither was the market affected one
way or the other to-day by such an
nouncements as those of the increase of /
the New York CentraTs dividend rate to
6 per cent and Of the proposed increase !
in the Atchison Railway Companys cap
italization. What the enlargement Of the
Atchison's capital is to be was not Of
responsible sources that the amount will
be about $780, 0O0,010
A part. Cularly strong stOckin the market
to-day was Reading common, and the move /
ment here was seemingly in response TO |
the further circulation of Tumors that an
increased dividend or an extra dividend !
upon the Reading common shares is i'm |
pending.
Sterling exchange to-day was weak in /
natural consequence of the stiffness of |
money. and this development along with /
the growing ease of money in London and |
the purchases here for foreign account /
during the last week which aggregated. /
it is estimated, more than 100000 shares, /
caused starting of hopes in certain |
speculative quarters that gold might be /
soon exported to this side from London.
Competent authorities on such matters, /
however, give ii as their opinion that any l
indication of a renewal by this country of
its recent drain of money from England /
viii result in another advance in the /
Bank of Englands discount rate.