Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-24
MONEY MARKET IS
EASY WHILE PROBES
TELL OF EASY MONEY

New York, March 23.-(By A. P.)
The pronounced ease in money at
tracted wide attention in financial
and business quarters during the
past week. Call money on the New
York stock exchange dropped to IL
per cert, while it was reported avail
able in the outside market for . per
cent. Time money. which until re-
Gently held at ga per cent for all
maturities, was available for 80 days
at IA per cent and for the 60 to
80 day period at IL per cent.
Bankers acceptances were slightly
easier and the rate on commercial
paper was shaded IA of 1 per cent
to IL per cent.
Bankers professed surprise at the
extent of the easing and it's persist
ence through the week. 1t was
pointed out that temporary ease al
ways follows a tax date. but such
relaXations ordinarily are over in q
few days.
An exceptional feature of the re-
cent tax payment. bankers said. was
the fact that many persons delayed
mailing checks until the last mo-
ment and many who usually paid in
full on March Is paid only an in
stallment, thus decreasing demands
on banks.
Heavy gold imports and the small
ness of the speculative demand for
credit were regarded as even more
important factors. According to this
view. the markets for securities
cotton and grain have been thor
oughly liquidated. and large
amount of credit liquidated in the
process. Meanwhile. the rapidity OF
the business turnover. due in part
to prompt railroad service, has kept
down the commercial demand for
funds. while offerings of new securi-
ties have been small because manu-
enlarge plants under present con-
ditions. - .-..
Bankers considered that these cir.
cumstances explained the cheapness
of money. The bear party in secu-
rites. on the other hand, alleged
that slowing down in business was
responsible and attacked the motor
and steel shares vigorously. In con-
tradiction, it was pointed out that
steel production is being maintained
at the high rate of the year and that
the latest car loading statistics show
new high records for the season.
Forward buying of steel. however
slackened somewhat and the tone OF
the market wasi slightly easier. A
few reductions in schedules of auto
mobile manufacture were also re-
ported. due. it is said. to the unusu-
ally large output the first of the
year, and to the unfavorable weather
The automobile companies said that
there was nothing unusual or dis
turbing in the situation.
The chief commodity markets held
fairly steady. although declines ex-
ceeded advances over broad list
Wheat steadied after the May flu
ture approached S1.O4, about cents
below the recent high. Cotton main
tanned a trading position with the
principal futures about 1 IL cents
above the recent low.
French francs continued their
rally. gaining another 5-S of a cent
on the week to above $50 cents. The
rate of gain plainly slackehed and
some we'll posted observers consid-
cred that the French government
was likely to attempt to stabilize the
price around current quotations.
The squeezing of bear spectators
caused some disturbance on the
London and Paris securities mar
kets, while the rapid advance in the
franc had lowering effect on
French commodity and security
prices,