The times. [volume] (Richmond, Va.) 1890-1903, 1902-01-12
BANK STATEMENT
WAS VERY GOOD
But 1t Did Not Seem to Please the
Stock Traders
AND THE MARKET SOLD OFF
Opening Prices We're Higher ard the Market
Was Strong Until the Appearance
Of the taak State
ment.
AND THE MARKET SOLD OFF

The stock market opened strong ye5ter-
day, with prices generally above Fridays
closing, and the market renamed strong,
with an upward tendency, until the bank
statement appeared about 1880 O'Clock,
when a selling movement set in and prices
were generally lower at the close. what
there was in the bank statement to cause
stocks to sell off, it is hard to say. There
was an increase In cash OF 5,63f,5O but
deposits increased s77s,50o. making net
increase in the reserves Of S5,+42,Slo.
Loans decreased 5ao9. 500. This was
good statement, but it seemed to be dis
appointing to some OF the traders, and
they sold their stocks.
ANOTHER FAILURE.
Tho announcement of the failure Of the
Peoples Bank. at Paynesville, Ohio. was
made the trouble growing out OF the fail
ure Of the bank at Cleveland On Friday.
Every failure of this sort ADDS to the feel
ing of uneasness in the market, and some
of the shrewdest traders in Richmond are
selling out their holdings and will wait
for further developments.
The general business Of the country,
however. seems to- be as good as ever,
if one may judge from the trade reports
of Dun and Bradstreet and from the earn
ingS of the railroads. For the first week
in January the Missouri Pacific showed al
increase OF $50 coo; Norfolk and Western.
SIS. 1856; Chesapeake and Ohio, S27.s73. The
coal traffic of the Chesapeake and Ohio
increased s24.345, and the passenger traf-
fc s9,31, but there was decrease OF
81 ,SSS in merchandise traffic and OF S1.241
in coke traffic.
The sensational rise of thirty points in
American Tobacco is explained by the
fact that the interests identified IL the
property are endeavorirg to buy up all
tho non-asseuting stock now outstanding,
these stocks not having been turned in
at the time Of the formation of the Con-
solidated Tobacco Company.
The large surplus in the United States
Treasury which is being rapidly increased
by the excess Of government receipts ever
expenditures, coupled with the fact that
government bonds are very scarce, IN
clines us to believe there will be a con-
siderable contraction In the medium OF
exchange
However. looking to a prevention Of such
a condition, a bill has been introduced in
Congress to allow the government s1r-
plus to- be deposited in the banks that
have capital of s5oo.G0o and surplus Ct
s5o0,000 at 2 per cent. per annum interest,
these deposits to be first lien upon the
assets of the banks.
Many New York banks are insisting that
these deposits should be made in the
banks In the financial csnters." stating
that the country banks will not be able
to meet the demands of the government
when Withdrawals OF the money are de-
sired.
This is reelection upon the country
banks which they hardly supposed their
larger friends would make. and the latter
have evidently lost sight of the fact that
at least one-third OF their deposits are
made by the country banks. and many
are comparatively stronger than the
banks In the financial centers. For
instance, the report of the Merchants
National Bank, of this city. Is just out.
showing deposits of s., a24 coo: cash and
due from other banks. 81, $4,000: United
States bonds. 1851 900: miscellaneous
stocks and bonds. st2ooco-equaI to over
50 per cent of their deposits. to say moth
ing of the premium on their government
bonds and their time and demand loans
of over 81 COO COO.
It IS douiotful If any bank In the ''hnan-
cial centers'' can make a better COM
parative showing. and there are many
more country banks just as good.