Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-09-21
A RESERVE DEFICIT,
PROBLEM OF MONEY MARKET
AGAIN THROWN INTO ACUTE STAGE
FIGURES s1,e42,o5o roo LOW.
Thu. In Spite of a Contraction in the
Loan Account of sr1 .ae4, boo-Mnr.
ket close. Distinctly Ensy, with
40 Effective Rally.
FIGURES s1,642,050 roo LOW.

NEW YORK. September o0.-The prob
lem OF the money market was thrown
into an acute stage again to-day. by the
disclosure in the bank statement that the
reserves OF the Clearing House banks
were 81 Sc. $50 below the legal require
nents. This was in spite of contraction
in the loan account of s11 1864 $780, the
shrinkage in the cash holdings having
reached s1.S3l.F9, as against preliminary
estimates OF less than -four millions. An
active selling movement followed the ap-
pearance of the statement, which efectu-
ally wiped out the previous gains which
had becn established under the leadership
IF an aggressive advance of . 3-4 by St
Paul. There was no appearance of urgen-
" in the selling. and the losses estab-
!sbed were not severe. The market clos
ID distinctly easy and With no effective
ally from the decline beyond the cover
ng demand from room traders. who took
Iutck profits the decline.
The last time that a deficit developed
n the reserves OF The New York banks
vas for the week ending November 4.
500 The reserves continued at a deficit
or several weeks following, in spite OF
arce loan contra ctions, the deficit reach
ng 81. 7Ss $50 on November 18th, and dis
ppearing on November 18th. as a result
f the relief afforded by the offer of the
hen Secretary Gage to purchase sos, o00,-
% per cents and As of 1907. This was
nc period of the first large flotation OF
ndustrials, and the orer-speculaton
which had occurred in them left the stock
market vulnerable to the influence of the
light money which persisted into Decen-
rer. Further loan contraction is clearly
Indicated by the present condition of the
)anks
BONDS DULL AND IRREGULAR.
Bends have been dull and irregular. In
ympathy with stocks. United States 5s
advanced ia. the new is, -. the Is, ga,
he 2s j. and the old As, / IA per cent.
Is compared with the closing call OF last
week.
The total sales to-day were 10000
shares. including Atchison. 1900: Balti-
more and Ohio. IL. 400: Canadian Pacific,
800: Erie. $500: Illinois Central $500;
Manhattan, 1880; Missouri Pacific. 20
800; Pennsylvania, $500: St Paul. SO. 400;
Southern Pacific. i2,7o0: Texas Pacific,
$500: Union Pacific %. 400: National Lead.
500: United States Leather. 1900; United
States Steel. 1860: United States Steel,
preferred. $500; Western Union. 10000.
MONEY AND EXCHANGE.
Close: Money on call steady: actual
transactions at 5 per cent; closing offer
ID at S; prime mercantile paper. 5 3-4@s
Der cent.
Sterling exchange firm, with actual
usiness in bankers bills at 4.S5.S75 for
emand and at 4.S3 for sixty days; posted
ates, 4ssk@z.s4 and 4ss1s; commercial
Ills, 4.S2A@a.
Bar silver, 51A. Mexican dollars 4oh.
overnment bonds steady. State bonds
active Railroad bonds steady.
The statement Of the Associated Banks |
r the week ending to-day is as fol-
Us:
.oans. $685., 5s4. 400: decrease. sl1. 964.5oo.
,eposits. 1888, 81. 900: decrease, sls.s9S3 800.
REGULATION. s34, 7e1 300: increase. s493.Soo.
egal tenders, s30.56S5Qo; decrease, ST.
800.
,ecie. $3.50, 100, 200; decrease. s5.76s,1oo.
,tal reserve, 500, 800: decrease. "a
90.
serve required, s222, 2l7,75o; decrease,
ficit in reserves, s1,642,o5o; decrease,
FPS