New-York tribune., 1919-01-25
No Limit Now
On Money for
Stock Market
Free Trading Restored by
Lifting of Artificial Re-
strictiOns Due to the War

All the artificial restrictions upon
the credit supply of the Wall Street
stock market have been removed Act
ing at the request of the New York
Stock Exchange, and with the full ap-
proval of the Treasury Department,
!, the subcommittee on money of the
Liberty Loan Committee, generally
known as the Bankers Money Com
mittee, late yesterday announced the
lifting of the restraints which have
been imposed upon the local money
market for months past. This means
that:
7 Brokerage houses, which have been
limited in their borrowings to
the level of September 16 last, making
the aggregate Stock Exchange loan
total approximately $500, 100000, are
now permitted TO enlarge their loans as
they see fit.
> The $2O0,ooo,OO0 call money pool,
organized two years ago to stabil
ize money rates during periods of
oeASoo SduoCu Oy SOVciALlCut wal UO4-
rowing, is disbanded.
2 Henceforth call money rates will
be allowed to take their own
course. being governed by supply and
demand.
Il The money committee will remain
in existence and will be in a posi-
tion to take action if an excited spec
ulation should develop to a threatening
point.
Statement by Money Committee
The official announcement of the
money committee, issued after the
close of the market says:
Last December, when the arrange
ment whereby the New York banks
| have been furnishing funds to stabilize
rates on loans on Stock Exchange COL
lateral was about to expire, the COM
mttee inquired whether the Treasury
Department wished an extension of the
arrangement then in force, and was re-
Quested by the department to continue
it's operations in aid of the govern
ment's financial requirements.
Acting IN accordance with the wish Of
the Treasury thus expressed, the sub
committee on money arranged with the
New York banks to continue the ar
rangement then existing until after the
next government loan and, with the
authorities of the Stock Exchange, to
continue exercising control of the loan
account to prevent it's expansion in the
aggregate.
"This week, however, the officials Of
the Stock Exchange, in a written com
munication to the money committee,
having stated that the conditions have
so changed that there is now nothing
to indicate the probability of a specu-
lative movement which would absorb
large amounts of money the sub-com-
rnttee on money at its meeting to-day
gave full consideration to this state
ment and after consultation with and
the approval of the Treasury Depart
ment, reached the following conclu-
sions:
81. That control by the Stock Ex-
change committee may for the pres
cnt be suspended.
SO. That the Stock Exchange au-
thorities be requested to continue to
receive from members of the ex-
change daily reports of their borrow
ings until after the next Liberty
Loan is placed
"3. That the definite arrangements
made with large group of New York
banks to furnish funds for Stock
Exchange loans. if and as required,
should now be terminated
"Thc money committee desires to ac-
knowledge and record its appreciation
OF the hearty cooperation which the
members Of the Stock Exchange and
the New York banks have given it
during the past months, and feels CON
ndent that should it hereafter become
necessary, in the interest of govern
ment financing, to rcestablsh the con-
| troll Of money for Stock Exchange loans
and for the sterilization of money
rates the Stock Exchange authorities
and the New York banks will again
unite with patriotic purpose to lend
full support TO the Treasury Depart
| mcnt."
Market Anticipates Action
Action OF the committee was not en-
! tircly surprise to Wall Street, al
| though many in the financial com
munjty did not look for the restoration
Of Il free money market until after the
next government war loan had been
| fIoated In the spring. Since Monday
| the district has been full Of reports
atrictjons, and after long meeting Of
| the committee on Thursday it was as-
serted that action Of farreaching i'm
prrtancc might be expected shortly.
Yesterday the stock market got wind
Of what was coming, with the result
that prices mounted rapidly, Leading
Issues on the exchange climbing scv-