The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-12-06
LOANS CALLED
ON LARGE SCALE
TroublouS Times for SpeCula-
Carrying Stocks on
Borrowed Money.
SHAW'S REPORT HELPFUL
CONDITIONS 90 NOT WARRANT
APPREHENSION.
SHAW'S REPORT HELPFUL

New York Dec. 1.-THE stock market
struggled with the money strlngency TO
day. but reflected clearly the difficulties
of the situation for SPECTATORS who are
carrying stocks with borrowed money.
Loans were called from time to time on
q large scale by the banks TO reduce their
deposit liabilities in the measure of the
heavy drains that were making on their
cash reserves. Occasionally liquidation
was forced by this process. The appear
ance of the annual report Of the secretary
of the treasury was the signal for COM
prehensive recovery of declines leading
TO halt in the market 1T about last
nights level. The recovery was based on
the assumption that the secretary stood
ready to take steps TO relieve money
sJringency in accordance with the
strongly expressed views in the annual
report of the duty incumb bent upon MIN
TO deposit i'm the banks as much can
possibly be spared of surplus funds in
the treasury IL business conditions require
IL. though il becomes necessary TO pay
the current expenses of the government
with checks on depository banks
But while this language was accepted
an an earnest of early action for the re-
lief of the money market, the relief was
not in the announcement. and the calling
IN of loans was an actual situation. The
fact that money conditions abroad also
began to Tighten again was regarded as an
additional factor IN favor OF probable
action by the treasury department as the
secretary was almost as emphatic on the
necessity of aiding TO prevent hurttul
stringency abroad as at home Much in
terest attached 10 the passage in the re-
port which said:
''The United States can i'll afford to
disturb financial conditions in Europe.
and if necessary to prevent it, the present
head of the treasury would not hesitate
TO make deposits in national banks on
condition that the banks in turn deposit
an equal amount abroad.
This was interpreted as an announce
ment that the benevolent attitude of the
towards he
Of gold might be conversely exercised on
occasion towards the export of gold
That the course of money in New York
and the resultant effect on the exchanges
has been tending towards the further
withdrawal of gold from London is the
fear of the London market, and this is
regarded as precluding any relaxation in
the money situation in London before
the end of the year. Not only IS cur
rency going from New York to san Fran
cisco to move the fruit crop and to New
Orleans TO move the cotton crop, but the
drop in New York exchange at Chicago
10 a discount again marks recurrence
of demand from the west in spite OF the
high ruling rates for money in this mar
ket. Customs collections are running
very large. the government receipts in
New York from that source yesterday
amounting to Sl2S9,656
The loss of banks on subtreasury opera
tions since the last bank statement now
amounts to S5.63i.000 The action of the
banks in calling loans needs no further
eiuCludLfOn- New OIh 1VulIdl WIS ttIli-
porarily strong on the increase in the
dividend rate. which cOnfOrmed to eXpec-
IatiOns. limitations of additional CAPT
tai issues by AtchisOn and Norfolk d
Western foreshadowed the future require
ments from this cause on the money mar
ket which are expected TO grow.
The urgency with which new capital
continues 10 be sought in spite of the
difficulties of the money market gives an
impression of uudiminished confidence
N the permanently of the needs which are
sought to be supplied by this outlay.
The effect is to confirm hopeful senti-
ment over the outlook for values. This
sentiment was apparent in fact. in the
stubborn manner in which stocks yielded
TO the money market Inconvenience. The
dull and obstinate resistance was shown
M to the closing. The - per cent call
loan rate is the highest since the first
week in September. when money went 10
20 per cent and the banks reported a
deficit at the end of the week.
Bonds were irregular. Total sales, par
value g. 050000.
United States As. registered. advanced
J., pPr cent on call.