Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-14
BY CHARLES F. sPEARE.

Special Dispatch to The Star.
NEW YORK, June 14.--With what is
known as wall street money" quoted
between and 212 per cent, corpora
tions and institutions are more than
ever disposed to withdraw their funds
from the call market and place them in
channels where they will produce 9
higher income return. This was re.
flected In the reduction In the loans
for Others" in the latest Federal Re-
serve bank statement to $1.146,0 900, 000
or about 81 ,765, 600, 900 under the figure
of a year ago.
Last October the loans for the ac-
count Of Others" which included cor
porations and individuals attracted into
the call money market by the highest
rates that had been ruling there in
years, aggregated $3,e03 100000. They
were then nearly 60 per cent OF all
loans, which reached a high peak on
October 2 Of $6,S04, 600, 900. 1t was rec
ognized that they were q decided mem
ace, both to the money market and to
the stock market in the event of a
serious scare among security holders.
Loans Called.
This proved TO be true, for in the
week of October 80 the corporation and
individual lenders called loans to the
extent of 1880 100000 at the same
time that out-of-town banks reduced
their loans $707, 100000. This threw
the burden on the New York City in
situations, which were compelled to
take over a large part of the loans OF
banks, resulting in an expansion In
their own loans that same week OF
nearly $1,000, 100000
The situation today Is that, instead
OF representing nearly 90 per cent OF
all OF the brokers' loans reported, those
OF Others" are below 20 per cent. They
have been reduced since last October by
$2,757, 900, 600, or over 10 per cent, and
are the smallest since 1928. 1t is ex-
pected that there will be further re-
ductionS IN this item during the Sum-
naer.
A large portion Of the funds that
previously were represented in the loans
OF Others" has been transferred into
The first heavy movement out of the
call money market was into Govern
ment issues. This absorbed large guam
titles OF Treasury notes and certificates
and discounted bills. Later it was re-
Elected in the buying Of short maturities
of the highest credit members in the
State and city groups. Then 1t went
into railroad equipment trust certifl-
Gates and the notes of the strongest
American industrial corporations. Some
Of 1t was also placed in short-term
foreign loans Of a corporation character
The oversubscription this week by
six times of the 100000 900 one-year
Treasury notes carrying coupon of
as per cent was one OF the effects of
a demand on the part of lenders of
money for a medium through which
they could earn better than the cur
rent call money rate.
Bank Loans Paid.
The reduction in the loans of Others"
also means that great many bank
loans have been paid OF instead Of be-
ing renewed. Others have been can
celed before maturity. Still another
phase has been the use of these funds
in the purchase OF commodities at the
existing low level of prices. A GER
tain amount of the funds has also gone
into long-term securities.
It was not only domestic corporations
and individuals that poured funds into
the call money market last year and