Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-30
PASSING OF MONEY.
STR|NGENCY SEEN
Mitchell Explains Policy of
Bank in Going to Aid
of Market.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April 3O-In hating
the advance of call money rates by the
offer of funds to the market on rising
scale as he did at the end of March
and again last Friday, Charles E.
Mitchell, chairman of the National CITY
Bank, had no intention, he explained
Yesterday, of giving the impression that
MS institution was attempting to peg
call money permanently at Is per cent
or any other figure.
1t would be impossible" Mr.. Mitchell
explained, Ito arbitrarily fix a figure
OF Is per cent and say that call money
above that rate represented a dam
gerous situation. Such a limitation
would be strictly academic.
The National City Bank may supply
funds to the market at or 10 per cent
or at 10 or 20 per cent, but in a time
of strained conditions in the money isv
market the level at which the bank
would feel constrained to secure funds
by rediscounting and offer them to the
market would depend upon the condi-
tons prevailing at the moment.
Reserve Cannot Control.
"The Federal Reserve cannot control
the supply of funds to the call money
| market. That is the function OF the
member banks and an institution such
as this in putting funds into the call
market Is not concerned with the rate
at which it lends so much as with the
| need of preventing a dangerous strIn-
gency from developing.
AT the present time it seems to be
agreed that about Is per cent is the
level at which banks feel obliged to
ease the situation. It might happen,
however. that at another time that
level might be much higher, 20 per
cent, for example"
Mr. Mitchell said that he believed
that the peak of the present call money
| squeeze had been passed and that the
| normal easing in credit after the first OF
May might be looked for in the next
| few days.
| Pointing out that banks still are
anxious to reduce their borrowings ac
| the Reserve, Mr. Mitchell said that it
would not be surprising to find the
| seasonal relaxation of money somewhat
less abrupt on the present occasion.
Predicts 8 Per cent Money.
| The carry-over from the money jam
of Friday forced the call rate yester-
| day to Is per cent, following a renewal
rate of IL per cent. For time it
| looked as though the rate would go very
much higher and predictions OF call
money as high as Is per cent were
current in Wall street.
| Enough funds to meet the demand
| finally appeared at the Is per cent
| level, however, and at the close OF the
| day money brokers were satisfied that
| the strain of preparing for the first Of
the month disbursements had been met
and passed.
| One authority on the money market
yesterday predicted rapid falling on
| in the demand loan rate and hazarded
| the opinion that by tomorrow the rate
would be down to 8 per cent.
AS natural result of the climb IN
| the demand loan rate time money
| stiffened somewhat yesterday. Bank
ers pointed out that it was only rea-
| sonable to expect that lenders, seeing
| call money bring Is per cent on the
| floor of the Stock Exchange, hesitated
| to tie up their funds for a period or
| time at materially lower rate.
SILVER QUOTATIONS.
NEW YORK, April 80 (P).-Bar sill
| yer. 5434. Mexican dollars, Al