New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-15
Money Tension
Forces Calling of
Loans on Stocks
Brokerage Houses Pay the
Banks Stiff Rates for
Accommodation

Heavy calling of loans on the eve OF
to-day's abnormally large government
financial operations produced high
tension in the money market yester-
day, with the demand from stock eX-
change houses heavier than il has been
in weeks. The banks called outstanding
loans TO meet the demands Of the gov
eminent and brokerage houses in turn
had to seek new credit accommodations
with the result that approximately s+O,-
100000 was placed at the Stock EN-
change. This did not meet the re-
duirements of the situation and some
brokerage firms had to go TO the out
side market, where they paid as high
as GA per cent. compared with a rate
of 6 per cent on the board. The bank
ers' money committee was active
throughout the day, loaning in all
more than 10000, 900 at per cent.
Heavy Government Financing
Three important transactions arc
scheduled TO take place to-day against
which the banks found it necessary to
strengthen their cash position yester-
day by calling loans. First there is
maturity of $685., 100000 OF United
States Treasury certificates OF in
debtedness to be paid off. Second, the
Treasury will pay out s35,OOO,OOO rep
resenting the initial semi-annual in
terest payment on the 3l2 per cent LIB
ertv bonds. The third transaction will
be the payment of the 40 per cent in
stalment due from subscribers to the
Second Liberty Loan. There is due the
government approximately Sl,02O,OOO,-
900 on the s3,SO9. 0O0,O 900 Of 4 per cent
Liberty bonds allotted. lnasmuch as
many subscribers are expected TO pay
in full instead of waiting until Janu-
AIRY 10 for the final 40 per cent install
ment. it is expected that to-day's pay
ments from loan subscriptions all over
the country will be in excess OF sooo'-
mn mn In the New York district
,.horo a1Iotments on the Second LIB
-. loan amounted to S1,151 ,OOO,OOO
and payments to date have aggrega'eu
se75 900 900, leaving balance unpaid
of $4,000, 900, payments to-day are
oxnected to approximate Sl25,OOO'OOo.
Easing Of Situation Expected
On to.day's transactions the govern
mont will actually diyburse approx
matelv s46o, 100000 more than it re-
ceiyes Bankers predicted yesterday
that the effects of this will probably
be reflected next week in general
easing up of money rates. For the
time being the heavy Withdrawals Of
government deposits at this centre
have tended to tighten the market all
around.
The Federal Reserve Bank Of New
York announces that the coupons on
United States Liberty Loan bonds, due
to-day. will be paid as follows:
Coupon No. /. due December l.. 1917.
on the a. per cent defntive bonds of the
first Liberty Loan.
COUPONS Nos. IA or / 3. whichever is at
tacbed TO the bond due December -. 1871
on the { per cent bonds issued upon the
conversion Of 3is per cent bonds OF the
first Liberty Loan.
All coupons will be redeemed at the Of
fee of the Federal Reserve Bank OF New
York Bond Issue Division. on the httn
floor OF the Equitable Building.
While the bank is prepared To redeem
coupons for individuals it Is requested
that in order 10 avoid congestion. tire indi-
viduals cash their coupons at banks or
trust companies, or at such postofices a.
may have been authorized by the Post
master General to cash the coupons.
In keeping with the generally higher
money market range, the directors OF
the Federal Reserve Bank Of New York
have established open market rates for
the purchase of acceptances at mimi
mum Of 3 per cent and maximum OF
Az per cent. The rates heretofore
have been 2is per cent and per cent.