The Washington herald., 1906-12-05
WALL STREET NOTES
Disappointment That Treas
ury Aid Is to Be Cut Off.
ARE STILL HOPING FOR RELIEF
Advance I'm Vanderbilt Dividends
Known to AII-With Cold Coming
On, the Coal Road Stocks Have
BOOnl-The Foreigners Going Home
Garry Millions Along Annually.

New York, Dec 4-The trader who Of
fered TO bet at the opening of the market
to-day that money would cross Nippising
| found no takers. Call loans were made at
as high a rate as % per cent, and the
continued loss Of cash to the subtTeasury
with the shipment to out-of-tOwn points,
| Sft little hope of any improvement in
the banks pending the weekly statement
on Saturday next, unless Secretary Shaw
should take measures to relieve the sit
uation meantime.
When a broker who handles money for
/ the large national bank which on Mon
day put out small sums at per cent.
made his appearance on the floor, he was
at once surrounded by eager brokers to
whom. however he could not even offer
words of encouragement The bank did
not put out any money during the day for
the reason. it was said. that 1t had none
TO lend, having been a debtor TO the
clearing house.
/ Some disappointment was felt-or at
| least the traders professed discourage
ment-over the fact that while the Presi-
dent commended the wise action" of
/ Secretary Shaw in relieving the money
situation in the past. he has not promised
similar relief from the present stronger
conditions. II seemed to be forgotten
that such a prompt Endorsement would be
I very Ike assuming the function Of the
! officials whose wise action was not
strongly indorsed Little fault could be
found with the force with which the
need Of some measure of currency reform
was urged although the particular kind
! recommend was not just what the street
wanted.
Excessive rates for call money In New
I York. said the Executive, attract
money from the interior banks into the
speculative field. This depletes the fund
that would otherwise be available for
commercial uses and commercial bOT-
rowers are forced TO pay abnormal
rates"
Here is the situation in a nutshell. and
as Washington understands it, there S
| no reason TO apprehend that conditions
under which Commercial borrowers are
forced to pay abnormal rates will be
/ allowed to continue while the Treasury
has the means of affording relief.
The Presidents advocacy Of q control
over corporations to prevent the evils
of excessive capitalization" may hasten
the plans OF a good many companies
which have been considering issues OF
one kind or another which are now like
" 10 bring matters 20 a head so as fore
stall any legislation in the present ses-
sion Of Congress.
Expectation that Secretary Shaw vii
do something to relieve the money situa-
ton is widespread. and in this connection
the Improvement in London IS regarded
with great satisfaction for the reason
that the placing of money in the banks
here would not have the effect had SINH
lar action been taken a few weeks age
Of sending gold abroad.
The traders had the Vanderbilt dividend
programme all ready, even at the open
ing Of the market. 1t was per cent
instead Of a per. cent basis for New
York Central: an advance from TO y pc,
cent in the rate on Lake Shore; an in
crease of the Michigan Central rate from
) TO per cent, and of the Nickel Plate
second preferred a rate from 70 / pei
! cent. Already the programme has been
Carried to the extent Of action on Lake
Shore and Michigan Central, but thS
others have yet to be acted upon.
Shorts who tried to cover in New York
Central in the first hour or two found the
supply Of stock was small and the
traders who became impressed with this
fact took the long side, helping the ad-
vance by their purchases. Every tipster
seemed TO have been employed to dis
tribute tips on the stock, and not only
were these given away free. but prize
packages Of other dividend increases went
with them to make them more acceptable
Nobody was overlooked.
Even the Office boys knew in advance
that the Lake Shore and Michigan Cen
tral dividends would be increased, and
they were Just as sure that the rate on
New York Central would be raised when
the directors took UP the question at their
next meeting. There were no doubts any
where.
An expression of doubt meant consign-
ment to the know-nothing class, and No
trader could afford to go there. 1t has
sometimes happered in the past that
everybody but the directors of the Van
derbiIt lines knew in advance what
would be done on the important question
they should have known. failed to confirm
the policy which the street had already
approved.
IN the present instance, however, the
directors of the Lake Shore and Michigan
Central have made good, which perhaps
means that those of New York Central
may not drop below the level of what
might be expected of them. It Is still
possible, however. that the dividend on
the stock may not be increased, notwith-
standing the enlarged returns Of the
roads investment in Lake Shore and
Michigan Central, which fall short OF the
dividend requirements on the new stock
Of New York Central to be issued this
month.
There was an unconfirmed rumOr that
Atchison would soon issue additional con
vertible bonds to pay for improvements
Even if true, however. the dividend pros
poets would not be affected, as AtchisOr