The Washington herald., 1906-12-07
MARKET NO BETTER
Wall Street Disappointed at
ShaW'S Meager Aid.
TIME MONEY MORE SCARCE
Brokers Say Amount of Money Re-
leased by Secretary OF Treasury Is
So Small and Would BE So Seat
tered that II VIII Afford Little Re-
Iief-Foreign Situation Improved.


New York. Dec. 6.-There was no change
today of any account worth mentioning
In the local money situation. Although
call money rates did not reach, until just
before the close of business. the extreme
high point touched yesterday. bank re-
newals were made to-day at a higher fg
ure. and the average rate for call funds
was undoubtedly higher than it was on
the preceding day.
The scarcity Of time money was in
creased and it was prominently in evi-
dence that in calculating the time when
some distinct relaxation in money was
likely TO come bankers We're generally in
clined to place this period somewhat later
In the new year than before.
Speculative Wall street was plainly dis
appointed over what was declared to be
the meager quantity of relief extended by
the Secretary Of the Treasury in his offer,
announced late yesterday afternoon, TO
anticipate the payment of 100000 inter-
est on government bonds falling due in
the first two quarters of 1907.
sum OF money thus released was so small
and would be so scattered over the cOun-
Try that its presence would not be appre-
ciably felt at this center. Regret was also
made that the disbursements of this
money was not to take place for more
than a week, when, of course, urgent need
for the money, so far as Wall street is
concerned, has passed.
Views of this nature were more pro-
nounced because of absurd stories circu-
lated yesterday regarding the character
of the help to the money market that the
Secretary of the Treasury was likely to
give.
False Hopes Aroused.
Many careless persons confused the Sec
retary's statement of the general position
assumed by him as regards his willing
ness to put government money in the
banks. made in his annual report pub
lished yesterday morning, with the posi-
bility OF immediate action that he might
take along these lines, ana an utterly un-
warranted impression prevailed that the
greater portion Of the governments fnan-
ciaI balance now lying idle in the Treasury
was TO be instantly placed with depositary
Institutions
While, therefore, the news Of what the
Secretary intended to do was received
favorably in the English market before the
opening of business here this morning
and resulted in considerable gains there
in the prices Of American stocks, the
announcement fell fiat in our own finan-
cial district and brought about a selling
of stocks by home operators that more
than counterbalanced the purchase Of be
tween eo,O00 and 5000 shares for London
account
The Bank Of England's weekly report
to-day did not make, perhaps, quite as
strong a showing as had been generally
looked for, as ii showed a decrease for
the week in Unietd States gold reserves
of more than S1.000 0O0; but the banks
percentage of reserve against liabilities
was but very slightly lower than il was
last week, and stood at 44.S4 per cent. as
against 4O.7S per cent at this time last
year.
Foreign Situation Improved.
It is claimed that in recent weeks the
financial situation in foreign capitals has
improved in about the same degree that
agreeable aspect here. Although small
hope is entertained among those whose
opinion on the subject is worth having
that the Bank Of England's discounted
rate will be reduced before the end of
the year. sterling exchange has fallen so
decidedly in the last fortnight and profit
able opportunity for the lending Of money
has become so great that a renewal of
borrowing by our bankers has TO some
extent occurred in LOndn and Paris.
One cause of the existing money situ-
alton here, perhaps, is the announcement
of English bankers. conveyed to borrow
eTs here some time ago, that certain loans
10 the amount Of about so. 100000 falling
due on January l would not be renewed by
them.
Up to the last half hour Of Stock Ex-
change business today the security mar
ket was utterly listless, although some
what heavier than il was on Wednesday
The market seemed TO suffer more from
the withdrawal from it of active specula-
tive interests rather than from any vigor-
Gus liquidation to-day
Prices Brenk Sharply.
Toward the end of the dav prices broke
rather sharply on the advance in the call
money rate to 80 per cent, and closed at
declines Of a point or more in the case of
many of the active stocks. An incident
of the day that provoked considerable
discussion was the speech made by
leading banker at the meeting Of the
Chamber of Commerce. in which he urged
that reforms be enforced in the methods
OF lending money on call on the Stock Ex-
change, and denounced the fluctuations in
the call money rates here as uncalled for
and hurtful of the general financial af-
fairs
It is, no doubt greatly to be desired
that the call money rate in Wall street
should be kept more stable than it has
been, but just how this can be accom-
plished. as long as there are scores of
money lenders, and while human nature
remains the same it is not easily con-
ceived.
1t may be said, finally, that the news
from Washington this morning that the
House OF Representatives there yesterday
passed bill permitting the national
banks to lend money on farm lands to the
extent OF 5 per cent of their capital was
not received at all agreeably in conserva-
tive financial circles here