The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-12-12
INSIDE HISTORY
OF THE STREET
CONTINUED from page IL

one days inconvenience. through nc
fault OF the committee.
AS soon as yesterdays disturbing
Financial conditions in New York
were known. the governors here were
offered the option Of returning home
and coming back Monday. Every pos
sible courtesy consistent With the
work of the committee has been ex-
tended every one.
Griesel, the first witness, was asked
ito testify regarding the loanins OF
money on the New York stock ex.
change. His firm is one of the larg-
est in Wall street.
There is post on the floor for
| the money crowd. " said Griesel.
Banks indicate how much they
have to loan and the brokers discuss
what rate they can get it for. At IL
or 1870 each day the loan renewal
rates are made according to the de
!, mand for money"
Griesel said that the call loans
were generally made on stock ex-
jchange collateral. about 65 percent on
railroad securities and 35 percent on
industrials.
Il have Loaned s25,oo0, 900 In one
day." he said. Our average daily
transactions are $10,0Uo,000."
The broker said the big lenders"
on the money exchange were the City
National bank, the Chase Bank and
the Bank of Commerce. Among the
large private bank lenders, he said,
were J. p. Morgan and Company, and
Kuhn, Loeb and Company.
Several times for months at a time,
the Morgan company are not lenders
said Griesel Kuhn, Loeb and Com
pany are constant lenders"
Griesel reeled off the names of the
loan agents of most the gigantic fl.
nanciaI institutions of New York.
The City Bank loans most of all, Z
he declared. Kuhn, Loeb & Co.
sometimes loan as much as any of the
banks
Griesel said he "cleared"-or han.
died $40, 100000 on Nov. 30, when
the loan rate went up. He asserted
that no record of loans was kept, ex
cept the aggregate amount up to noon
daily, to fix the loan rate. Afterwards
loans are not recorded.
"on Nov. -, probably only $4,000,
1000 was loaned up to noon" Griesel
added. There are SO many millions
and millions loaned every day pri
vately that it's an impossibility te
give the daily average"
The broker said the bulk of loar
business was done by five brokers
The Roberts and Rogers Company. he
said acted for Morgan G Co. M
banker will loan money on stock un
| less there is at least ten point mar
gin on it, to be SAFE" the broker as
serted.
Steel is the best collateralth
4 best in the world There was mar
ket before 1t paid dividend" h
said.
Names of out-of-town banks whicl
IOdu lnOHcy dlC OiSClOpCu III QSdiE
GrieseI said, and the Park Bank repre-
sents the most country lenders" TIL,
Chase bank, he asserted, was an ez
ception. 1t does not disclose tn
identity OF its country correspondents
Griesel declared the country bank
always loaned more when the ca
Srate scared. He stated that he kneN
of no other public money marke
where money was auctioned.
Turner. loan agent for the Nations
City Bank, said the City Bank ne1
er charged more than six percent fo
money.
IF other banks did that, wouldn't
keep money in the country, when
is needed?" asked Untermyer.
81 believe money finds It's level,
Turner parted. The City ban
whether from altruistic motivess Q
not, has always helped to Keep tn
rate down"