The sun., 1919-08-01
NEW LOAN PLAN
FOR RWALLST. AS
MONEY GOES UP
Top Figure in Stock Ex-
change Is IS Per Cent;
1919 Record There.
RATE AT 20 PER CENT.
Figures Reach Is Per Cent.
in Exchange, High Mark
There for 1919.
CALLS COME FROM WEST
More Serious Credit Situation
Is Feared by Some FL
nancial Experts.
CALLS COME FROM WEST

Plans are under way for a reorgani-
cation Of the lending machinery OF
Wall Street, It was learned yesterday
Action has been FASTENED by the con-
tinued wide fluctuations in the rate
for time money. together with the
tightening Of credit which has become
apparent in the last few days.
Under the new plan. It IN said. q
committee is to be appointed consist.
ing OF representatives OF the New
York Clearing House and OF the New
York Stock Exchange. This commit
tee Will be in itself clearing house
for loans as we'll as an ALLEGATION me-
dunn for available funds. A secretary
will be appointed by the committed
and this secretary will take a position
on the floor of the New York Stoci
Exchange, where he will receive from
the banks statements as TO tn,
amounts available for Stock Exchang'
loans. and from the members OF thu
in the way Of money.
Then the secretary win make al
ALLEGATION of the funds made available
from the banks among the varioui
brokers, filling their requests wher
| ever possible. This plan viii be cen
tinued in effect until the Stock Clear
ing Corporation takes up its function
late in the year.
At least two conferences have beer
held within the last few days betweeI
representatives of the Stock Exchang'
and representatives of the banks a
which the credit situation was thor
oughly discussed and the necessity o
allocating available funds was deter
mined upon.
Officials Of the New York Stock Ex
change have not yet made any forma
| announcement Of the plan, but It Is be
lieved that something in the way Of al
official statement will be forthcomin.
early next week, II not to-day. Th'
principal reason assigned for this stel
| is the belief among bankers that tn
credit situation. as far as the immediat
future is concerned. will become wors
instead Of better.
! An ofiicial OF the Federal Reserv
Bank OF New York declared yesterds!
that there Is every prospect that none.
! is to be tighter and the credit suppl.
for Stock Exchange purposes smaller a
| days pass. He gave II as his opinion
that the peak Of the demand has not ye
been reached Notwithstanding that tn
supply must continue to be less and less
Money skyrockets to 20 Per Cent
with heavy calling of loans by bil
banks In New York AZ we'll as by interio
institutions the money market yes.erda.
became violent once more in its fiuctua
| tions and after a very calm and sedat
| opening at 9 per cent for mixed col
lateral and 6 u per cent. for all indus
trial collateral. II skyrocketed upwar
during the afternoon to a top figure o
20 per cent. The highest OFFICIAL recor
Of loans on the floor of the New Yor
Stock Exchange was Is per cent. tn
closing loan rates being recorded at ,tha
point for both classes Of call loans Out
side loans were made. however. as hig
as 20 per cent. and It Is not unlikel
that an even greater rate was obtaine
In some obscure cases
Various reasons were assigned 10
tho calling OF loans which brought aDou
this tremendous Jump. Interior bank
were said TO have called a large portio
of the money which they have bee
lending here in the bull market for tn
purpose of crop movement. These inter
ior institutions early In the stock mar
| - .AN 4.
the better rates obtainable here com
pared with the West and middle Wes
and sent large amounts hsre from tim
to time to be lent on Stock Exchang
collateral. Any concerted calling b
these institutions therefore could not b
without it's effect on the call none
rates.
The $s5. .Ooo, 900 Canadian GovernInen
Totes and the debentures OF a littl
more than $4,000. 900 Nof the America
Foreign Securities Corporation. whic
fall due to-day. were also blamed I
some extent for the furry In rates.
sddition there is we'll over million c
ordinary commercial money due.
In the stock market the high none
rates had the effect of depressing 81
curity prices to considerable degree
Closing quotations, though. were not q
far below tho previous days close q
to cause serious apprehension anon
traders. due TO the strength OF tho earl
morning session before the high none
rates made their effect felt Then. to-
an unsettling effect was caused by III
abatement made by the Federal Reserv
Board at Washington on Wednesda
that It felt II had made its positio
clear in previous utterances against uI
due speculation on stocks. Traders wei
.a,.Svhat dIuIdad nm tha internreta tio
Of this statement, some holding that
meant that the Federal Reserve Boar
had done all II intended to do TO cur
speculation. while others took the vie
that the board was merely markin
time-awaiting whatever effects I,
previous statements against specuiatio
! may have.
Fast and wide Rate Jumps.
Tho fluctuations OF the money ra,
during the last minutes of the stoc