Omaha daily bee., 1908-12-21
MANY DEMANDS FOR MONEY
Large Calls for Funds Financial Fea-
ture of the Week.
oUTGo OF GOLD is CHECKED
Rise in Money Rates Prevents Ship
ments to Europe and Attracts
Money to New York from
other Centera.

NEW YORK, Dec. 20-The sharp set
last week belied the hopes of the specula-
tive element which counted on the protec-
ton of the market against reaction by the
millionaire operators thraugh the tighten
ing of the year-end money market. The
support of prices which has been rigidly
maintained in the last few months was
seemingly abandoned at times during the
week and the diminished supply OF re-
sources available for borrowing for specu-
lative purposes was clearly an element in
the course of conduct At the same time
some OF the weeks developments were re-
garded as an index of an over-sanguine
assumption in the earlier speculation as to
the favorable course of events The causes
back of the rising interest rates for money
were sufficiently obvious. The weeks
drain on cash resources alone, what with
the gold shipment the previous Saturday
and the large sums paid into the subtreas-
ury on subscriptions to the Panama canal
bonds, was sufficient to wipe out the sur
plus reserve Of the banks. At the same
time nearly every day saw an announce
ment of some new bond sale or of some
issue to be offered for sale in the not dis
tant future.
OutgO of Gold Checked.
The rise in money rates was affective
first in checking the outgo of gold and
then in attracting some funds from other
centers to the New York money market.
The New York exchange rate at Chicago
advanced to a premium in the process of
remittance. These sources of relief while
calculated to supply requirements of syndi-
Gates OF mercantile borrowers are not as
sured resource for stock market borrow
ers. There were developments to show also
that along with the refunding of short time
obligations of the great corporations put
out at high interest rates during the period
of actual stress, there are some maturities
falling due OF a more perennial mature for
which provision is sought in a qu1eter way
but not without effect on the money mar
ket and also 1t is possible on the stock
market In the longer view of the money
market also the conviction is not so strong
that some ease of money will come prompt
ly after the turn of the year.
Enormous capital issues, amounting to
$25, 600 coo, await that season for floatation,
Russian loan in Paris and railroad bor-
rowings here being included. limitations
comes from London that the Bank of Eng
land will begin policy of gold accumula-
rlon with the new year to bring it's holdings
in line with the great increases in the gov
ernment banks on the continent of Europe.
Many Calls for Gold.
In New York the amendments made last
year to the banking laws provide that the
full requirements on the trust companies of
l5 per cent of deposits to be held in cash
in their vaults shall go into force on Feb
ruary l. Since July last these companies
have held 10 per cent Of reserve. and 1t is
estimated that the increase Of per cent
will call for something like $45.OOO.OOO 1t
is expected that the accumulation of this
considerable sum will begin soon after the
first of the year. The possibility is thus
presented that the great abundance of
money looked for after the first of Janu-
airy may have been anticipated from so
many quarters that the demands upon 1t
may outrun the actual supply, or greatly
modify it's effect on the rate of interest.
Both in the field of industry and of poll
tics some of last weeks occurrences were
looked upon as showing that opinion in the
financial district had been overrunning the
event. The progress of hearings on the
tariff revision before the ways and means
committee OF the house at Washington in
dicates a widening scope and deeper con-
sequence to from from the course to be
taken by that work. The attitude OF the
president-elect on that subject. as discussed
in his public utterances, are taken to fore
shadow his sympathy with this tendency.
Mr. Tafts views on the Sherman anti
trust law also remove some assumptions as
to the immunity likely to be enjoyed by
CONTINUED on second Psse)