New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-11
To Stabilize Money
Market During
Loan Campaign
First Steps Taken to Pre-
vent Disturbance-Call
Rate Up Again

Plans arc being developed by the
Federal Reserve Bank OF New York, IN
cooperation with the Liberty Loan
General Committee Of this district,
to handle the financing Of the
next Liberty Loan in way which
will avert unnecessary disturbance OF
the money market. A special COM
mittee, consisting of George F. Baker,
Walter f. Frew, Gates ". McGarrah,
Charles II. Sabin, Frank A. Vanderlip,
James n. Wallace and Benjamin Strong
as chairman, has been appointed for
tho purpose of dealing with the mat
ter.
The first step, approved yesterday
will be the gathering of information
from the banks and trust companies IN
this city showing their liabilities and
resources at the close OF business each
day. which will be Of particular I'M
portsnce at the time Of payment for
the new issue of bonds.
Call for Data
TIL. specifc data desired are
First-Total amount Of balances carried
With the reporting institution by BANKS,
trust companies and savings banks locaueu
outside Of the City of New YORK. -
Second-Total amount Of strictly can
Loans carried by reporting institution Tor
IN. account of out-of-toWn banks, banHers'
firms and corporations. , Ill
Thi-d-Total amount OF st7Gt5 car
loans carried by each reporting bank ioF
i'S r wv Tb.S amount Of the following
classes Of securities which are eligible either
for discount or "a collateral for loans OF
the Federal Reserve Bank: A.,
(aD Unpledged obligations OF the
United states government
ib) Municipal warrants
tel Commercial paper
tdI Acceptances owned by the re-
porting banks. -, -
E;f,b-The amount (market NalusD OF
securities owned by the reporting PAM VI
addition TO and not included IN tnose
portcd. which may be accepted ~ the reu,
e-sI Reserye Bank, as collateral 10 seeure
government deposits, as prescribeu
T.sasurv Department Circular No. 81, anu
nv subsequeut rulings OF the deparIme"'
modifying the same.
Il is believed that with this informa-
ton in hand from day to day a recuI,
renee of The wide swings IN the can
monev rate that characterized the no
tation of the first s2,OOO.oOO,ocO issue
Of Liberty bonds will not take place
On lone occasion the rate for loans on
Stock Exchange collateral jumped 10
N nor cent. despite considerable
amount Of rediscounting OF commercial
paper at the Federal Reserve Bank
Heavy Withdrawals
An advance in the rate yesterday 10
nor cent was attributed to prepare
lions by the banks to meet their SUB
scriptions TO the latest s3OO,0oo'V''
issue Of Treasury certificates of indebt-
cdness, payments on which must De
made next Morday. II was also re-
ported that a heavy withdrawal was
made here of government deposits for
advances 10 the Allies. Another factor
that is tending to create a scarcity OF
funds in this market is that money Is
now being sent West and South to all
in moving the cotton and grain crops.
As result of the stifening OF the
call money rate ]. P. Morgan & Co., as
agents of the british government, are
not pressing the sale this week OF
British Treasury bills. This will make
the fourth successive week they haEe
been offered, but up to the close OF
business only s2,O0O,OOO had been sold:
In the previous weeks sl5,C00,ooo had
han disnoscd Of each week