Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-12-30
Unusually Large in All The
Financial Markets.
Highest Renewal Rdie for Call
Loans Of Year in New York.
January Dividends and Interest Pay
Inenis Heaviest OF Record.

New York, Dec. 20.-Financial mar
kets. last week, were almost wholly
given up to preparations for the year
H. settlements. AS has long been eX-
nected demands for this purpose are
moving very heavy. Requirements. In
themselves. are usually large and in
Furope Withdrawals of cash from the
hanks for boarding have reduced re-
serve resources and aggravated the
strineency. Credits of the great cen
fral banks are expended already to
an extraordinary degree and the usual
call for year-end resources promises
a further strain. In New York the
largest January dividend and inter-
est payments ever made will have to
be provided for and sustained trade
activity keeps up the interior demand
for money. The cash requirements Tor
the Holiday circulation also proved
unusually large, adding TO the strain
In spite of the almost stagnant stock
and bond market. the renewal rate
for call loans at the Stock Exchange
rose to the highest figures of the year.
In times of buoyant speculative sem
tinent stringent money markets have
praved no bar to active and rising
stock markets. The dizziness and slug
aisllness of the current stock market,
therefore, may be translated into ac-
tual perplexity over the future course
of events. The hesitation is the more
notable as coming after q prolonged
and extensive decline in prices from
which the recovery has reached only
a small percentage. The fact that
some of the factors most active in
causing the decline have spent their
force does not alter this condition.
Confidence is now general that the
peaceof Europe will be preserved in
spite of likely delays. There is almost
universal precedent for expecting an
enormous refiux of money into the
great banking reserve eenters prompt
" after the turn of the year. The rec
ord rate of activity in trade in this
country may be said to have reached
the year-end full tide. The persistent
idleness of speculation, nevertheless.
Enthusiastically spells doubt.
This doubt flows partly from a eau
tious desire TO see indications that
the present activity in trade will be
sustained, rather than proving pos
sibie prelude to reaction. Another
cause of restraint is the enormous
new capital issues waiting for the
first favorable opening in the money
market. Wholesale government loans
must issue to cover the cost of the
war in the Balkans and the mobiliza-
lions of troops by the Great Powers
induced by that war. Hundreds of
millions of short-term railroad notes
IN this country mature within a few
months Corporation requirements for
new capital also are very large.
The effect ON business, if any, of
the coming tariff revision remains the
subject of conjecture. The definite
form to be taken by forthcoming
measures of legislation for regulation
and control of financial institutions is
another subject of lively interest.
The stock market, last week, was
affected only in spots by incidents
having more restricted scope than
these general considerations, pending
the resolutions of which a waiting at
titude was maintained.