Show P Weekly Market Lett Letter LetterI r I By TAYLOR J. J CHAMBERLAIN I. I Vice President National Copper Coppe Co I I of the warning bythe by bytho the tho fed federal ral reserve system regarding regarding regard regard- ing speculative loans Is seen in last weeks weel's figures Brokers Brokers' loans declined de- de dined with the New NewYork York banks withdrawing and out or of town banks from tho call Corporate and other lenders put out additional on on collateral security Activity Activity Ac- Ac in the stock market has slowed up considerably which is in aU all probability responsible to a large extent for the reduction in borrowIngs borrowIngs' borrow borrow- borrowings borrowings' Ings' Ings against stock collateral Call calt money has been easier ruling between be- be tween 6 and 7 per cent No announcement announcement an- an has been made regarding regard regard- regarding ing the rediscount rates of the New NewYork NewYork York or Chicago federal reserve banks Tile The only announcement bYthe by i ithe the system was the increase of buying buy buy- ing rates for acceptances by the outside federal reserve banks to bring all tile the rates in line with the changes made last by the New NewYork NewYork York and Chicago banks There was considerable unc r- r last week as to whether dealers deal deal- ers era would be able to hold acceptance acceptance accept accept- ance rates at prevailing levels or whether quotations would go fractionally frac- frac higher For the present It looks as though rates are well stab stab- Foreign and doi domestic estic buying buying buy buy- ing of acceptances has reduced the fl floatIng supply in the hands of dealers deal deal- dealers ers and at the same time the supply sup sup- ply of new bills has slowed up It is rather expensive for corporations corporations corpora corpora- to finance through the medium medium me- me me- me of a c now as banks would charge 5 3 8 per cent plus a commission of 1 per oer cent enton on sixty and ninety day maturities or a net cost of 6 8 63 8 3 p pOr r- r cent to tile the bor- bor rower Under conditions the large borrowers will probably make direct loans wherever po rather rath- rath er than create acceptances There has been a a. fairly good buying de- de roand in the sho short tr treasury cates and the l ICIng ng term goVern goVern- ment bonds have hav been steady without with with- out ut ll a great deal of- of activity The secretary of the treasury has announced announced an- an that an offering of 6 securities cur lUes may be expected expect d on or about March 7 1929 to take care of the quarterly financing on March 15 This will undoubtedly be in of short certificates but the rate and maturity is still a a. question n of debate While speaking of government government govern ment securities We wish to men men- tion that Consol Is have eco e every very difficult to obtain and are now offered nominally at 1013 3 We have noticed a greatly increased interest in since Mellons Mellon's recent announcement regarding the possible extension ot of the maturity beyond 1930 General market bonds are ale still bein being traded in relatively small volume yol- yol ume although more interest Is being being be- be ing shown by insurance and institutional buyers in the high grade railroad and utility issues Because of 01 the difficulty o of obtaining obtaining obtain obtain- ing blo l o offerings at a close fig fig- figure I ure ure this interest has not resulted In any large amount or of actual busi- busi ness It Is however important to note that the larger buyers are showing a willingness to take substantial sub sub- blocks of bonds at present levels |