The sun., 1919-06-04
MONEY AT 12P.C. AS
US. LOANS ARE MET
Rush to Pay for Victory Bonds
Reduces Supply for Stock
! Market Uses.
RATE LOWER AT CLOSE
Estimates Are Nearly IS P. G.
Of New York's Share Of
Loan Paid For.

Small and large subscribers to the
Victory Loan bonds took advantage of
fhe opportunity yesterday to pay in full
for the latest issue and by the close of
The day II was estimated that nearly
IS per cent OF the ailotments on the
New York districts subscription of
1880, 100000 had been paid in full.
Not far from $1,000, 900. 900. It was esti-
mated, reached the representative of
The Treasury Department in the form
Of book credits, cancelled certificates of
Indebtedness and cash. The tranaac-
lions were so large that the supply of
money available for stock market pur-
poses was reduced for the moment and
the continued high pressure demand
caused money rates to rise to IL per
cent.
Officers of several larger national
banks and trust companies reported that
the Victory Loan two weeks after the
date Of the bonds was nearer full paid
than were any preceding Liberty issues
at 50 early a date and that the dead
wood Of the earlier Government loans
was cleared away to an exceedingly
large extent The amount paid In yes
terday was 80 large, az to cause con-
siderable surprise in banking circles.
When the news was telegraphed to the
interior that call money touched 10
per cent. on Monday. bankers accus-
toned to transfer money to this centre
TO take advantage OF the high rate,
thought OF asking their New York CORE
spondents to lend their funds, but tho
move was held in chcck by the Victory
Loan payment due yesterday, The
bankers are in position to make cash
frun iryp thaN -.
supply Of money would be forthcoming
in the near future was expressed In
authoritative quarters yesterday.
There Is no regulation OF the money
market and the rate responded to the
law Of supply and demand. As loans
against stock exchange collateral are
not rediscountable at the Federal Re-
servo Bank, the pressure for money for
Stock Exchange purposes caused the call
. rate to feel the full btunt Of the de-
mand. For the third time since the
Federal Reserve system has been in
operation call money touched as high as
IN per cent 1t opened at per cent
for mixed collateral. renewed at that
figure, rose to 10 per cent. and closed at
6 per cent For all industrial collateral
call money opened at 6h per cent, re-
newed at that figure, advanced to IL per
cent and closed at 10 per cent. An in
teresting feature OF the money market
while at the top of its furry. was the
appearance of q money broker on the
floor, announcing that the National City
Bank was ready to loan 100000 at 8
per cent. The loans were speedily taken.
Previous call money statistics may be
summarized as follows:
In the weeks of December 9, 1915, call
money touched Is per cent. In the week
July 81, 1917, money went to 10 per
cent During 1913 the money market
was pegged at per cent. by the money
pool. Highest rate for money was 1906
per cent, on May 8, 1884. Following day,
May 4, and UP to May 7. money loaned
nat; 1. e.. without interest charge. Call
money touched 125 per cent. on two oc-
casions; once, in 1905. when the pres
sure demand for year end settlements
on an already overextended credit sit
uat!on sent prices sky rocketing; the
second time, in Ootiber, 1907. as re-
suit OF the panic, Other high levels were
as follows: 60 per cent. in 1905. 20 per
cent. in 1908 and 1919 IL per cent. in
1910. and 10 per cent. in 1910, 1913 and
1914.