Show sanker blames walt street for inflating stocks causing abnormal demand for money sage mas missions to loan at high rate SECRETARY SHAWS STATE MENT chicago dec 28 according to the evening journal secretary of the treasury shaw was asked it ho had any intention of taking steps to relieve the money situation in new york and replied when I 1 decide to take any steps to relieve the situation there I 1 will make a public announcement no of my intention I 1 haye not made up my mind one rf way or the other new york dec 28 the call money market opened strong again today the first loan reported was abc the rate of thirty per cent per annum and this was followed almost immediately by another loan of at sixty per cent the advance in the interest inte iest rate was sensationally rapid from sixty there was a quick advance to 75 90 and then when per cent was touched all records since december 1809 were broken in that year per cent was paid tor call loans after lending at today there were loans at cent ine 90 per cent quotation did not last long and at 11 per cent was paid for funds and shortly afterwards a loan of at per cent was reported although brokers were compelled to pay the highest prices in years tor cash with which to carry their stock there was little excitement over the situation many stock exchange bouses provided themselves several months ago with ume loans to tham over january ast 1st Is time when money Is always in great demand for dividends interest and other year end settlements these time loans are pot affected by the call money market some stocks were sold out during the morning hours principally industrials but in the main stocks held well in the early trading considering the markets usual sensitiveness to money conditions on the stock exchange the view was taken that the stringency Is temporary and that easier conditions will prevail immediately after january ast 1st the demand tor money started within 15 minutes after tha opening of business As a rule nothing is done in money until after 11 today a loan was made early at 30 per cent this was regarded as an effort to keep the rate down immediately afterwards bids were raised rapidly at 10 per cent between quotations A request for accommodation at 40 per cent brought no offer then the bid was raised to GO with no better results tho next was CO at which figure a second loan was mada of no more money was offered at that rate the third loan was made at 70 then the demand for money from brokers as a result of heavy calling of loans of banks in order to make arrangements for the january ast 1st disbursements bur became urgent and most of them were apprehensive as to whether they could renew their loans at all the call rate then climbed rapidly to 80 90 and per cent the top rate yesterday was 95 per cent the greater part of offerings came from out of town banks through their local correspondents A great many industrials and commercial houses alao loaned through banks russell sage through his representative was reported to have loaned at 90 to per cent more than the usual discrimination was shown by the banks in the collateral accepted by them for loans the rate for sixty and ninety day loans today was six per cent and a commission making such loans really equivalent to nine per cent by noon the demand tor money seemed to have been largely supplied toward 1 the demand for funds seemed to have been pretty wall satisfied and money was lent at sixty per cent just as soon as the money tension seemed to have been relieved the stock market started to advance led by a sensational movement in anaconda this stock rose rapidly to against earlier in the day there was no definite news to explain this advance except the reports of a rich strike in the companas comp anys mines amalgamated copper was carried up 2 12 1 2 cointa in sympathy owing to its large holdings of anaconda and other copper and smelling smelting sm elting stocks were also strong president hepburn of the chase national bank said today the enormous volume of business which obtains throughout the country is making a strong demand upon the banking power and naturally has materially teri ally advanced the rates of interest the foreign exchange credit which the country would normally make Is much curtailed by the shortage of cars which prevents the rapid marketing abroad of cotton and grain and also by the concerted withholding of cotton for higher prices normally we would anticipate such exchange by our credit abroad but europe has troubles tiou bles of its own the russian cloud hangs over the markets A possible default in the interest upon the enormous indebted tot russia has seriously disturbed berlin holds paris in anxiety and of course exercises B strong reflex iu fluence in london money has been 8 and 10 per cent in berlin and unusually strong in other centers hence w are called upon to finance our great volume of business practically with our own resources it Is unfortunate that at such a time and under such circumstances prices of hated securities should be persistently advanced day by lay it has added to tha money strain and Is primarily responsible for the high rates of in keresty stocks if worthy would have dounda higher level in e normal manner without creating an unusual strain and without causing conditions fraught with possible danger at the call money market became much easier and dropped to 6 per cent and at the quoted rate was 6 to 10 per cent |