The Washington herald., 1906-12-05
Call Funds Reach % Per
Cent Late in the Day.
STOCKS TAKE SLIGHT DROP
Presidents Message Has No Effect
on Market, but Brokers Express
Satisfaction with His Suggestions
Regarding Corporations - London
Has Fears of Gold Exports.

clines in security prices.
Although there was a little lessening
to-day in the cheerfuiness of the tone
recently exhibited in the London market,
London houses were still buyers of stocks
here during the morning hours of the
stock exchange session, but on a some
what more limited scale than they have
Neen doing for a week past
Gold to the amount Of I,25O,WO was
withdrawn from the Bank of England to
day for shipment to Egypt. and further
Withdrawals of the same sort were antici-
pated. 1t also appears to be the case
that there is some slight revival of anx-
iety in London as 10 the possibility Of
renewal of gold exports from England TO
this side in consequence of the continued
frmness of money rates here. Neverthe-
less, the feeling is undoubtedly very con-
fident in London that the money situa-
tion there has passed through by all odds
the worst phase that il is likely to for
long time to come, and that the position
of the Bank of England is now so strong
as to assure the bank definite control,
that a month or so ago seemed on the
point of passing from it, of the English
market.
Call money here to-day opened at 1S
part Of the day were commonly made at
1fa per cent
Wants 20 Per Cent.
A prominent trust company, however,
that is one of the largest lenders of
money on the floor OF the exchange. did
not make its renewals until the afternoon
was well under way. and then declined
TO lend any money at less than 20 per
cent
Call funds thereafter ruled at above
this figure until just before the close
of business, when the rate sank 70 IS per
cent. The highest rate paid to-day for
call funds was y per cent This was
admittedly disconcerting to spectators
on the rise, who had hoped for decidedly
greater rise during the day in the gen
eral money situation. and the unpleasant
effect of the stiffness of call rates was
intensified by q further advance in the
price of time funds For money for sixty
days use to-day S per cent was paid on
security of mixed kind. ordinarily offered
on stock exchange loans; while for three
months, and for most loans, and ~
per cent. was commanded. and money
for use for commercial purposes seemed
30 be in scarce supply.
1t may be that the tightness of money
to-day was especially due to a recurrence
of large demands from the interior Of
the country for funds. Exchange on
this city in Chicago fell to % cents dis
count, and S1,300000 was sent by the local
banks through the subtreasUry to New
Orleans and San Francisco. Counting
to-day's losses. the cash reserves OF the
clearing house institutions have been di-
minished since last Friday over s4oC0000
through subtreasury transactions, and the
indications are, therefore. that unless
the banks report on Saturday a very con-
siderable diminutiOn in loans. the bank
surplus on that date will only the more be
shown To be below the legal minimum.
Expect Aid from shaw.
It is wholly probable that this state of
affairs would have brought about a much
greater drop in prices of stocks to-day
than actually occurred had it not been
for a prevalent feeling that the Secretary
of the Treasury would once more come to
the aid of the money market through the
use of the many measures Of aIIeviation
that he has so often practiced. The
Treasury surplus is obviously ample for
such expenditures. yet the Secretary of
the Treasury undoubtedly finds it more or
less difficult TO put money in the banks
Al the present time, owing 10 the reces-
sity resting upon him OF keeping the
Treasury strong in cash against the time,
later on, when redemption must be made
of the large quantity of government I
per cent bonds falling due on July next
As il was, to-day. although the market
was weak. there was no urgent lquida-
ton, and the undertone displayed in the
market yesterday was. in fact continued
until midday. and only ceased in the
afternoon. when money rates. instead OF
relaxing as had been expected. began TO
tighten.
Certain stocks were particularly strong.
The Consolidated Gas shares were favor
ably affected by the action Of the COM
pany yesterday in increasing the wages
Of its employees.
American Sugar Is Up.
American sugar stock was up sharply
toward the close Of the day. and all the
Vanderbilt shares advanced naturally,
upon the announcement of an increase in
the annual dividend rates of the Lake
Shore and Michigan Central companies
10 y and per cent As this action viii
increase the revenues Of the New York
Central Railroad Company in sum more
than sufficient to pay an additional I per
cent per annUm upon New York Central
stock, it was urged in speculative quar-
ters that an advance from 5 to per cent
in the New York Central dividend rate
was likely 10 be made, and the rumor also
circulated that distribution on the sec
ond preferred stock of the New York,
Chicago and st. Louis Company, other
wise known as the Nickel Plate" would
be ordered in January at the rate Of per
cent instead Of the prevailing rate Of per
cent
The Presidents message to-day was not
regarded in Wall street as a market factor
of Importance. The general comment
heard concerning the document was that
II seemed TO be less radical and heated
than any of the Presidents previous ut
teranceS. Pleasure was manifested over
the suggestion made by the President 70
Congress that no further legislation af-
fecting corporate interests along the lines
Of that in the preceding sessions should be
attempted until the laws already passed
had been tried for a time; but. on the
other hand. there was considerable dissp D.
pOintmeut that the President did not see
fit to make a more earnest plea fer re-