Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-19
Increase of Business PRODUCE
tive of Further Declines.
MONEY STRINGENCY FELT
Losses of Seven Points and Over Not
Uncommon.
ADVANCE IN LOAN RATES
Arrival of Secretary Shaw Exerts Sus-
tanning Infuence-St. Paul One
of the Features Of the Day.
MONEY STRINGENCY FELT
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 19.-There was a
very large increase in the volume of bust
ness In today's stock market even beyond
yesterdays large aggregate, and the trans
, actions were productive of many further
extensive declines in prices. Losses extend
ed M to six and seven points and over
Were not. uncommon. but while such a
shrinkage In values Is usually associated
with conditions of semi-panlc, 1t would be
altogether incorrect TO assert that today's
dealings even approximat a state of de-
moralization
A. has been the case for IN indefinite
period. the actual controlling influence in
the stock market was the monetary strin-
genCy. Conditions in the money market
Were even more distressing in the time loan
division terms of the market for call loans.
The rates for sixty-day loans advanced
to 10 per cent, ninety days loans could
be obtained only between So and per cent
and from to 9 per cent was bid for four
months accommodation.
Correspondingly higher rates were quoted
for loans running from six to twelve
months and over. 1t Is obvious that such
rates for money put virtual embargo on
the purchase of securities aside from a
speculative standpoint at the present level
of prices, and it would be absurd to look
for any revival in the investment demand
so 'ong as existing conditions are MAIN
tanned.
Shaw's Presence Felt.
There were no particular developments
relating to money market conditions to-
day The banks made further small gain
in their operations with the subtreasury.
raising a sum acquired from that instltu-
ton since last Friday up to $3S38O0O. The
arrival in the city of the Secretary of the
Treasury was something of a sustaining in
fiuence In the stock market. 1t was as
sumed that he had come here for the pur-
pose of investigating money market condi-
tons and of taking some further steps to
receive them If he considered them neces-
0ary.
connection with the course OF the local
money market and an active inquiry for
gold for American account was reported
from London.
The London stock market was generally
weak and some apprehension was expressed
there that the Bank of England would fol-
low the course pursued by the imperial
Bank of Germany and make an advance
In its rate of discount tomorrow. American
stocks were exceptionally strong, however.
And foreign houses resumed their buying
operations in this market, taking about
16.oGO shares on balance
6t. Paul was naturally conspicuous fea-
ture of the market as the stock opened eX
the rights against the new issue of capital.
Even allowing for the corresponding reduc-
-fered. further severe decline. 1t was for
tppate, however, that the governors Of the
Sbtdek exchange saw their way clear to adj
hitting the.St. Paul rights to quotations on
the board, as otherwise an almost unbear-
Able situation would have been created.