The Washington herald. [volume] (Washington, D.C.) 1906-1939, 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, but They Do little Dam
age-Security Market Placed on
Firm Basis as Result of Ability TO
withstand Attack Of Yesterday.

" Ah4-HAA-A0 lAt42Ch VI lCsAfEAAFs
New York, Dec. 91.-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,
00000o, the largest ever known in the
country hiStOTy-but yearly financial aC-
counts OF banks, trust companies Wall
street houses, manufacturing plants. and
vast variety of business concerns be
balanced
To accomplish this neces-itated 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 a test as
could be made Of the solvency and sta
bility 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 appIehenslUns even as llte rs the
close of last week that the call money
rate under the great locking up Of funds
that was TO take place might advance 30
figures that would surpasS al records and
10 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 Firm.
The salient feature Of events in fnan-
cial circles to-day was. however. the
bringing together of evidence that the
previous liquidation Of speculative hold
ings IN the Wall street commission houses
caused by anticipations of this character
had served to place the security market
as "a 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. TIE con4uCt of the stock mar
kct to-day was, on other words, not
exactly that OF a market that was
ovars3ld-by which il is meant one ia
which speculative contracts fC- the de
cline have been created il disproportion-
uteiy large numbers as compared with
the actual quantity of genera! liquida-
uGn-bUt a market that is sold out.
j. eIcd a market ia which the Ques-
Ji-u had run its course and which stub
b0.uly resisted all speculative efforts to
deTress it. In the earlier part OF the day
there was a continuation of that uneasy
feeling which was so plainly felt on Sat
U-G@y. and which resulted then IN general
declines in prices.
Perturbation over the probable course
o.. money rites during the DAY. for cir
eElL-ian Of trouble runners of a vague.
Questionable. malicious character, and a
re--rrcuce OF the seemingly chronic weak
ness in the Great Northern and North
crn Pacific stocks. engendercd FOR a little
f44tFlr.-t
Neyy Low Records Made.
On the curb market the rights to sub
scribe TO the Great Northern and North
ern Pacific railway companies new stock
issues sold down to "a new low record,
while ower price was made for M /
siAlng Mines stock that at any time since /
the declining movement in the security f.
began.
Under these influences values ran down. /
in many Instances. TO pretty nearly the /
low figures that were made last WedueS-
day. But the power for harm of these F.
forces was soon dissipated Il was seen I
that the selling that occurred was not OF
large blocks of stock, and the suspicion /.
grcv into positive certainty that what
was going on was merely the efforts of
operators for the fall TO get the market. if .
ltI-a~IaI.E. 10 81 lower level 81 ltl tIlf SELL
inE movement ceased the market was duh
and after the noon hour il began 10 ad- 7
vance.
A great source of encouragement Of /
course had been the fact that previous /
10 this time renewals Of call loans had /
bsen made by the leading financial insti- .
tu,iOns. despite the calling of the money
that took place, at rates varying from /
20 20 . per cent Such rates as these
were far below those which had been
commonly expected, and they pointed to /
the strong probability that no excessive /
squeeze" in money would be expert /
enced during the day.
Although in the late afternoon call /
money rates did advance 10 as high as A. /
per cent, very little money was lent {
above 20 per cent. and there were absO- |
iUtely 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 /
Iquidated or there were any actual diff
hCulues pending.
When the state of affairs became plain /
the rising tendency in the market was
continued and it went on until the close /
of business without any perfervid buoy /
ance but still in a strong and determined
way, the stock as a 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
parativeIy 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 $780,
030 TO 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-
day in the open London market. This led
10 strength on the London stock ex-
change. and fortified the general belief not
entertained there that easy money in
London and the reduction of the Bank
of Englands discount rate was "A prac-
teal certainty in the coming month.
\ matter, finally. that helped in the