The Washington herald., 1907-01-01
MARKET NOT PANICKY
Call Money Rate Does Not Go
as High as Was Feared.
PRICES IN RISE At CLOSING
Circulation of Trouble RumOrs"
Plentiful, bat They DO Little DAM
aGe-Sccurity Market Placed on
Firm BaSIs rs Result OF Ability to
withstand Attack of Yesterday.

H III AE~ANAA sAH AAN"AAt Va @hf-AaAF "
withstand Attack of Yesterday.
New York. Dec S1-On Wednesday not
only must payment be made aggregating
enormous sums OF money in the shape Of
interest and dividends due at that time
the payments, indeed, being over $780,
000.0J0 the largest ever known IN the
cOuntry's history-bUt yearly financial ac-
counts Of banks. trust companies, Wal
street houses, manufacturing plants. and
a vast variety Of business concerns be
balanced.
To accomplish this necesSitated a call
ing in of money on a large scale from
those who have borrowed it by those who
have lent il. and it was inevitable that
this must have afforded as severe q test as
could be made of the solvency and sta
biiity OF the general credit position. par
ticularly in the local financial district.
Wall street has been awaiting this test
for weeks with peculiar dread. There
were apptcheusIuns even as late as the
close Of last week that the call money
rate under the great locking up of funds
that was 10 take place might advance TO
figures that would surpass all records and
be such as 10 result in an enforced sell
ing of stocks to-a larger extent than has
been seen at any time previously during
the year
Market Basis Now FirTa.
The salient feature Of events in fnan-
ciai circles to-day was. however, the
bringing together of evidence that the
previous liquidation of speculative hold
ings ia the Wall street commission houses
caused by auucipaUons OF this character
had served 10 place the security market
as whole upon foundations far more
substantial than anybody had supposed;
and this development obviously justified
a much more optimistic forecast OF the
stock market than was made month
ago. The Con.Uct OF the stock mar
Eet to-day was. on other words. not
exactly that of "a market that was
Ovcrsoid-by which It is meant one in
which speculative contracts for the de-
cline have been created in disproportion-
ately large numbers as compared with
the actual quantity of general Iiquida
tion-5ut market that is sold out
I, seemed a market in which the qUes-
ticn had ran its course and which stub
bcIEiy resisted all speculative efforts 10
All tlll ttii ttFl Af+A VA tt-H '4-iF
there was q continuation Of that uneasy
feeling which was SO plainly felt on Sat
friday, and which resulted then in general
declines in prices
Perturbation over the probable course
Of money rates during the day, for cir
CUlS,i1n Of trouble runners OF "a vasue,
questionable. malicious character, and
recurrence of the seemingly chronic weak
ness in TIE Great Northern and North
EN- Pacific stocks. cnsende-ed for a little
time more or less market weakness.
New Low Records Made.
On the curb market the rights to sub
scribe TO the Great Northern and North
crn Pacific railway companies new stock
issues sold down TO q now low record,
while a lower price was made for Nip
shining Mines stock that al any time since
the declining movement in the security
began.
Under these influences values ran down,
in many Instances, 80 pretty nearly the
low figures that were made last Wednes-
day BUt the power for harm of these
forces was soon dissipated- II was seen
that the selling that occurred was not of
large blocks Of stock. and the suspicion
grew into positive certainty that what
was going on was merely the efforts Of
operators for the fall TO get the market. if
possible. TO a lower level When the sell
ing movement ceased the market was duh
and after the noon hour 1t began 10 ad-
vance.
4 great source of encouragement Of
course, mad been the fact that previous
to this time renewals of call loans had
been made by the leading financial insti-
tutions, despite the calling of the money
that took place, at rates varying from
90 TO . per cent. Such rates as these
were far below those which had been
commonly expected and they pointed 10
the strong probability that no excessive
squeeze" in money would be expert
enced during the day.
Although i'm the late afternoon call
money rates did advance TO as high as -
per cent very little money was lent
above 20 per cent. ard there were abs0-
lutely no signs of distress in any financial
quarter This certainly could not have
happened if any large quantity of weak
speculative accounts yet remained to be
Houidated or there were any actual diff
fculues pending.
When the state Of affairs became plain,
the rising tendency in the market was
continued. and il went on until the close
of business without any perfervid buoy
ance. bat still in a strong and determined
way, the stock as Il rule making gains
No Houses in Difficulty.
Other than has been generally stated,
there were no occurrences Of financial
character to-day. Coincident with the re-
newals of bank loans to-day at the com
paratively low rates described came an
announcement that the sheets of the stock
exchange firms had successfully opposed
the scrutiny of the clearing house regard
ing the transaction In the market on
Saturday, and this dispersed the stories
of financial difficulties which have for
several days past been in circulation, but
which il is needless TO say. have been of
a most indefinite description.
The local banks transferred to-day S500,-
coo 10 San Francisco, and have lost a lit
tie money on balance to the SUbtreasury
in the week thus far. The progress made
in London to-day toward a building UP of
the reserves of the Bank of England was
shown in the purchase by the bank, with
out competition, of 100000 In gold to-
dav in the open London market. This led
20 strength on the London stock ex-
change, and fortified the general belief nos
entertained there that easy money in
London and the reduction Of the Bank
of England's discount rate was "A prac-
teal certainty in the coming, month.
matter. finally, that helped in the
distinct improvement in financial senti-
ment to-day was the revelation of the
fact that high rates for the use Of time
money We're in the majority of cases
nominal and NOT srcb as were aetna FIv