Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-20
MORE TREASURY AID
SHAW EXPECTED TO DEPOSIT
$25, 900, ooo IN BANKS.

NEW YORK. December 2o-Bankers with
intimate knowledge of affairs of the Treas
ury Department stated with confidence af-
ter the close of the stock market yester-
day that Secretary Shaw has a plan to
deposit S25.O00000 in the national banks to
tide over the acute stringency attending
the end of the year settlements.
The deposit of the So, ZOO 600 if made, it
Is said, will be temporary and will be COW
cred into the treasury after January 10
In weekly installments of IS, 100000 each.
Secretary Shaw came to the city yester-
day, but did not visit the Wall street dis
tr1ct. He spent a few hours in the New
York Athletic Club with friends and re-
turned last night to Washington. The re-
port that he would come to the aid of the
money market was current on the stock
exchange and caused rally in prices.
According to the statement of the con-
dition of the treasury yesterday the re-
ce1pts from customs and internal revenue
for the day were $2,571 900 and for Deem
Der to date S34. 1S6. O29 1t is also said Mr..
Shaw has what is termed "up his sleeve"
that is. an amount that he can safely let
go into the banks. between $50, DOC, 900 and
$40. 100000.
New York's financial storm, which fell
with violence on Tuesday, following the
announcement of st. Paurs issue of $780,
100000 stock. continued undated yester-
day, and occasionally the liquidation ap-
peared uncomfortable.
Big Losses Sustained.
There were enormous losses sustained by
large operators as a result of the decline,
and many large speculative accounts were
closed out as a result of q widespread call
ing of loans and readiustment of credits
made necessary by prepare lions for the
subscriptions to the st. Paul stock issue.
The action of the stock exchange an
nounced yesterday. in making an immedi-
ate market for the rights and the decision
of st. Paul to issue temporary warrants
for the rights, prevented a continuance Of
the disturbing factors which,, many
thought. precpitated the severe break in
prices on Tuesday. The relief from this
quarter was not sufficient. however, to
repair the damage done in other quarters
1t was the inability of borrowers yester-
day to obtain money which added momen-
tum to the liquidation begun by the ST.
Paul episode. Money rates for call loans
ran up to rs per cent and borrowers who
renewed loans had to pay 25 per cent for
the use of funds over night.
The financial distress was accumulated by
wholesale throwing over of Reading COM
mon stock on account of the failure of the
directors to declare an increased dividend
yesterday, as many had been led to believe
would be the outcome Of the dividend
meeting. The combination of unfavorable
developments played havoc with the high
priced STOCKS. ana more severe losses than
those recorded on Tuesday were sustained
in several leading issues.
Declined in Spasms.
At the opening st. Paul rallied more than
31a points, to 1874. with the rights deduct
ed. The rights were then quoted at 35.
Compared with the close of the previous
night, there were fractional gains in prac-
tically all the principal stocks. The higher
basis, however. only served to establish
a level upon which needy sellers liquidated
their holdings. with the result that the
market weakened and then began to de-
cline in spasms of selling movements
Great Northern and Northern Pacific
two sufferers of the previous day, de-
clined more than points each. Great
Northern sold down to 1872 and Northern
Pacific sold down to 1921. These two
stocks have their rights still to be de-
Quoted.
Union Pacific declined to 1884, a loss of
nearly points, and Reading, on trans
actions of approximately 521 1000 shares,
declined to 1879, loss of about 6 points
st. Paul. the center of the financial storm
after opening up points, dropped to 147
a loss of points. before the market rail-
lied.
the outlook In the market was darkest
and prices were weakest. rally occurred
on the news that Secretary Shaw was in
the city comforting with bankers and was
considering relief plans for the money mar
ket. There was rapid recovery in Union
Pacific. st. Paul and the so-called Hill
stocks, but it appeared as if the recovery
was due to covering by bears. There was
little support to the market by the bulls.