Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-20
LOCAL FINANCIAL NEWS.

A change i'm the level of prices for the
traction securities was made today at the
meeting of the stock exchange, and in the
direction of higher prices, but without
bringing about any trading to speak of.
There was no indication of improvement
in the conditions which have prevailed
now for some time past. and which is one
of fnaction accompanied with gradual
decline in the quotations. The entire lack
of any demand for the securities on the
list. which applies with equal force to
those that are usually active well as
to those that are normally inactive, is not
explained.
There are no indications of any buying
demand. and if there were it might be
thought the continuance Of the interest
rate on the level of the days Of the panic
had something to do with the lack OF
business. According to those who are in
a position to know the applications from
those who want loans are not numerous.
and in consequence the pressure for lower
interest rates on collateral loans has not
been felt.
In New York the money rates arc back
to the level of the days when there was
n" Immediate apprehension of strin-
the current rates for loanabe funds in
New York are for call money from IA
to "a and for time money up to six
months, from to AZ per cent.
Here the rate for collateral loans re-
mains at = per cent, which is an advance
from per cent. the usual charge, except
In periods of abundant money when 1T
Is still lower AT the same time at cur
rent prices for securities on the local ex-
change an unusual return on the amount
of money invested is shown, and the
same may be said of most of the leading
securities In the general market.
This situation, for one reason or anothe r,
has not produced "a large buying demand,
and at the same time the shrinkage in
prices has resulted in only limit ed
amounts of the securities coming on the
market. although 1T is evident there must
have been good deal of remargining
necessary on the part of many holders in
order to save their holdings.
This latter phase of the current market
conditions Is looked upon as an evidence
of the substantial character of mucn Of
the ownership of local securities. 1t has
been demonstrated for some DAVIS that a
lack of buying and receding prices have
not had the effect of bringing out stock
and that there has practically been no
liquidation in recent days.
1t Is pointed out that the CURRENT re-
ceipts at the Treasury of national bank
notes for redemption, which. as stated,
exceed on an average over a million of
dollars day. and will probably make a
new nlgn record FOR the month of Feb
ruary. furnishes evidence that this cur
rency is now in excess of the needs and
that this instance furnishes a striking
illustration of what is meant by an elias
tic currency
In times of uncertainty and doubt when
credits are overstrained there is not
enough currency in the country to do Its
business. which IS normally and mainly
transacted through the medium of the
evidences of credit. namely. checks. AS
soon as confidence begins to be restored
the usual substitutes for currency comes
into play and the need OF large amounts
OF actual money is not SO pressing.
What is wanted. according to those who
have given the matter study is some
form of currency that can be expanded in
an EMERGENCY and contracted when the
emergency passes: and it is that which
such a measure as the Aldrich bill Is
supposed to accomplish by allowing the
banks to take out notes secured On the
deposit of bends other than government
bonds.