New-York tribune., 1916-07-11
Firmer Money Contributes
Toward Unsettling of
Stock Prices.
CALL RATE RISES
TO SIX PER CENT
Street Interested in Arrival of
German U-Boat-Industrial
Alcohol Weak.


character Of the offerings and with no
increase in business, stocks opened
the week yesterday under pressure
from professional quarters and ended
the day TO points under the Sstur-
day closing. Increasing irreguarity
and unsettlement furnished the out
standing feature of the session and
divided attention with the sharp rise
in call money. Late in the afternoon
the rate for call funds on the eX-
change got up to per cent, the high
est since November. 1914, and 1l2 per
cent above the recent high. Renewals
were also made at the higher rate OF
Az per cent.
Action of the banks in calling
loans yesterday :his was done on
quite a heavy scale during the fore
part of the day and applied to mixed
collateral as well as industrial loans
was an important contributing factor
in depressing security prices. Firmer
money rates had been foreshadowed in
the bank statement of Saturday, which
disclosed a large drop in aggregate
reserves and surpluses, due to the
flow of funds to the Federal Reserve
Bank and TO seasonal demands. Bank
ers yesterday were of one mind II
predicting continuance of firm
money. although they were inclined TO
look for an influx of banking funds
- e,.4 IaFa "a r.
vantage Of the higher rates here. In
London the financial authorities were
reported to be watching the tendency
of money here with much concern. as
they realize that higher rates in New
York. unless met by a corresponding
rise in London. may cause large with
drawals of banking balances there and
thus affect sterling exchange adverse
ly.
Speculative selling by professionals
who continued their tactics Of last
week. was given as the chief reason
for the further decline in the stock
market. Market observers pointed out
that only comparatively small offer
ings were required to depress prices
quite severely. owing 10 the absence
Of active buying support. Industrial
Alcohol. one Of the pool favorltes OF
the recent past. having sold IN April
at 17Oi2, showed the greatest loss yes
tcrday. declining more than 20 points:
10 1912, where il registered fall OF
SO points from its high record NO
exclamation OF the break In the stock
was forthcoming. aside from further
intimations of dissolution Of the
clique that has been backing the issue.
Some of the war stocks that have been
weakest of late. notably Baldwin Loco
motive and Crucble Steel, moved
against the general drift of prices ana
made themselves conspicuous by clos
ing substantially higher Copper and
other metal shares, on the other hand,
were generally weak, while the rails
inclined toward heaviness, with a ten
dency 10 rally at the close. Although
the untitled tonnage statement OF inc
Steel Corporation for June was about
in line with expectations with de
crease Of 297340 tons, the first de-
crease since August, 1915, Steel com
mon was heavy most of the day and
ended about a point down. Unified
business at the end of last month
stood at 9,6400 tons.
Wall Streets chief interest in the
arrival of the German submarine down
the coast lay in the possibility that
the undersea vessel might have
brought in German-owned American
securities. The fact that such offer
ings might come into the market
perhaps contributed somewhat toward
depressing sentiment. although subse-
ouent Developments indicated that no
stocks or bonds were brought across.
In the event. however, that German
enterprise succeeds in establishing
regular line of submarine traffic be
tween Europe and the United State
the possibility of security shipments
is a thing that may assume much i'm
portance. German exchange was SEN
timentally affected by the arrival OF
the U-boat and rose above "a cents
for four marks. Arrival Of more Sc
curities from London estimated at
s25.OOO,O 900 showed there are still
more British-held Americans TO be alb
sorbed on this side. Announcement OF
the new French loan is expected this
week. Fresh financing by Canadian
municipalities and provinces is under
negotiation here with the prospect Of
new dollar loans to take up sterling
issues in London.