220 



FINANCIAL REVIEW OF 1900. 



Money on call loaned at the Stock Exchange 

 during the year at 25 per cent, in November and 

 a> low as 1 per cent, from June to October in- 

 clusive. During the first few days in January 

 loans were made at 12 per cent., but gradually 

 Ihe market grew easier, influenced by a return 

 movement of currency from the interior, and by 

 the end of the month the rate fell to 2 per cent. 

 In February the tone was easy, rates declining 

 from 3 per cent, to 1J per cent., but in March 

 there was an advance to 7 per cent., pending the 

 passage of the new currency law, influenced by 

 the decrease in the surplus reserve of the banks. 

 Thereafter during the month the market was 

 easier, and loans were made at 2 per cent, at the 

 dose. In April, influenced by the improved con- 

 dition of the banks, money was freely offered, and 

 (all-loan rates fell from an average of 3J per cent, 

 lo 2] per cent. The market then began to be 

 favorably affected by the increase in bank note 

 circulation and by the refunding operations, and 

 up to the end of April $260,783,050 fundable bonds 

 had been presented for exchange into the new 

 2 per cents., while the disbursements for premiums 

 on the funded bonds were about $26,000,000. Not- 

 withstanding exports of gold to Europe in May, 



1 he money market was easy, call loans ranging 

 from 3 per cent, to 1 per cent., and averaging 



2 to 2i per cent. The range in June was from 

 1 to 2 per cent., with the average 1| to 1J per 

 cent. In July, while the range was the same, the 

 ji \erage was 1| to Ijj per cent., and in August, 

 with an uncnanged range, the average was 1J to 

 I ^ per cent. It may be noted that on Aug. 18 

 a call by the Treasury matured for the surrender 

 for redemption of the 2-per-cent. bonds of 1891, 

 which were extended at 2 per cent, and made 

 redeemable at the pleasure of the Government. 

 These bonds then outstanding amounted to $25,- 

 :i4..">00, and they were largely held by banks as 

 x'dirity for circulation and public deposits. The 

 surrender of the bonds was slow, however, and at 

 tin- end of the year there were $1,207,600 of these 

 securities outstanding. In September, while the 

 range for money on call was from 1 to 2 per cent., 

 averaging from 1$ to 1{& per cent., the feature 

 was a perceptible hardening of the rates for time 

 money due to the demands from hoi-rowers who 

 dc-ired to make provision for periods beyond the 



election, and rates for five to six months collateral 

 loans were 5 per cent. In October money on call 

 was active, ranging from If per cent, early in the 

 month to 6 per cent, by the close, and the activity 

 was almost wholly due to the pending presidential 

 election and to the low bank reserves resulting 

 from the drain to the interior for crop purposes. 

 The average was from 21 per cent, to 4J per cent. 

 Time loans were firmly held at 5 per cent, for all 

 periods. In November, immediately previous to 

 the election, there was an urgent demand for 

 money on call to tide over that period, and on the 

 2d loans were made as high as 20 per cent, and the 

 borrowing was in many cases until the succeeding 

 Wednesday. On the following Monday 25 per 

 cent., the highest of the year, was recorded for 

 loans over the election. On the day after that 

 event, however, money was comparatively plenti- 

 ful, and it so continued for the remainder of the 

 month, ranging from 2 per cent, to 6 per cent. 

 In December, money on call loaned at the New 

 York Stock Exchange at 6J per cent, and at 3 per 

 cent., and the tone of the market, until toward 

 the close of the month, was firm, influenced by the 

 absorption of money by the Treasury and by a 

 movement of currency to the interior, which re- 

 duced the supply, and by the active stock specu- 

 lation which increased the demand. In the last 

 week of the month liberal Treasury disbursements 

 for interest and for pensions and free offerings 

 by commission houses who had anticipated some 

 stringency at the end of the year and had there- 

 fore made provision with time loans contributed 

 to an easier feeling, though the rate did not fall 

 below an average of 5 per cent. One feature was 

 an inquiry for thirty-day collateral loans at 5 per 

 cent, to tide over the period of expected activity 

 in money in January. 



The offerings of money on time during the year 

 were generally confined to local banks and trust 

 companies, though some institutions in near-Iiy 

 cities sought contracts on stock collateral for fixed 

 periods. The buying of commercial paper was. 

 however, largely by banks in the interior, some 

 as far west as St. Paid, and owing to this com- 

 petition for paper rates, except in -January and 

 in October, were comparatively easy. The ex- 

 tremes for the year were from 6 per cent, in Janu- 

 ary to 3] per cent, in June for indorsements, and 



