The Money Market

     Apprehension about the money market would have been natural in view of the falling reserves of the New York banks exhibited by last Saturday’s averages. The attempt to kill the President, however, tended to create some fear, and it therefore became incumbent on the Clearing-House authorities to act in the premises. The prompt adhesion of practically all the New York banks and bankers was readily secured, and on last Monday, when stock-market loans were to be renewed, a syndicate of banks stood ready to lend $10,000,000 or more at 6 per cent. Considerable sums were placed at this rate, but the call rate soon fell to 5 per cent., and closed for the day at 3 per cent. There was some disappointment because the 6 per cent. rate could not be maintained, as it is believed that it would facilitate gold importations. On Tuesday and Wednesday, however, the tone of the market was improved by the acquiescence of the Treasury in the New York bankers’ request for action and the announcement that the internal-revenue deposits would be increased and tenders received for $20,000,000 of government bonds. The call-loan rate fell to 4½@5 per cent., and as low as 3 per cent. was recorded. On Thursday, however, there was a firmer tone on the comparatively small offers of bonds under the Treasury’s call, and 5@6 per cent. was again quoted. On Friday the President’s relapse caused pressure, call money advancing to 6@7 per cent., and 9 per cent. was at one time quoted, the close being at 6 per cent. The banks this week apparently lost $2,500,000 cash, but on Friday the Treasury paid out about $8,300,000 on account of bond purchases, thereby creating an impression that to-day’s bank statement may not be unfavorable. Time money was not offered early in the week, but later on came out in moderate amounts at 5@5½ per cent., some lenders holding funds at 6 per cent. Commercial paper was inactive at 5@6 per cent. for double names.