Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-10-01


market, which closed utterly demoralized
yesterday as a result Of the strin-
gent monetary conditions and other I'M
favorable circumstances, made a sensa-
1ional recovery to-day. The chief causes
for the complete reversal were the ac-
ton Of the Secretary Of the Treasury in
removing the restraint on bank reserves.
and persistent reports from various quar-
ters that the coal strike had at
last reached a point where negotiations
for settlement Were actually under
way. For this last rumor there appeared
to be little or no foundation. according
TO the individual and collective state
ments of the leading operators, made
after the regular weekly meeting. An
other influence for better prices was the
decline in call money rates. though du-
ring the morning loans were made at
a rate as high as 10 per cent. A large
part of the days loans We're made at "a
figure around 10 per cent, and the rate
at the close went down to 2, but this was
really nominal, no money being placed at
that figure
Opening prices We're better all the way
from a fraction to ) points. Wide OPEN
tHgs, in which blocks of 1900, 5000, and
5.oQh shares changed hands, Were numer-
Gus. The greatest gains were in the
standard railway shares. notably ST.
Paul. Louisville and Nashville (Which
bore the brunt of the previous days
pounding). Missouri Pacific, Union Pa
cific. the Coalers, and q number Of Spe-
cialties.
GREAT EXCITEMENT ON CHANGE
On the floor Of the Stock Exchange, the
greatest excitement and activity pre-
the short side were covering with all
possible speed but the bull faction was
in absolute control. The list manifested
vacillating tendency soon after the
first bulge, and many Of the active stocks
whose initial gains had been largest re-
ceG'ad from to 8 points.
The opening rate for call money was u
per cent, but soon advanced to IS. Great
ing general confusion among those COM
mitted to higher prices.
vac ,nCre sensational, featuI es of tn,
market developed in the early afternoon,
on news from Washington intimating
that the President and his Cabinet had
taken steps to terminate the coal strike.
In spite of the absepce- of any confrna-
ton, the market seized upon this
nouncement, and with the coal stocks in
the lead. the entire list shot upward The
market developed a buoyant tone in the
last hour, though operations were con-
fined largely to the Coalers. which were
heavily traded in and closed al practi
cally the best prices of the day. The
days operations We're in excess Of 100000
shares.
Secretary Shaw's visit to the Street,
and his talks with the leading banking
interests, helped in no small measure
to restore confidence. The local banks
loaned moderately.
STATEMENT FROM SHAW.
coll
statement to-day:
"Tie department is in receipt of q
number of requests from various banks
in the country. clearly showing that the
statement given out last night was mis-
understood or rather was not carefully
read. That there may be no misunder-
standing, the following statement is made:
NO new deposits will be made any
security other than government bonds,
so long as government bonds can be Sc
cured. For the present, banks seem to
he able to obtain, frequently by borrow
ing. bonds other than per cent. consols-
They can obtain the use of these bonds
for a limited period and they are as de-
sirable as any for security Tor deposits.
ghey are not as desirable as security Tor
circulation for the reason that circulation
based thereon is taxable at l per cent,
while circula ton based on the per cent.
consols is taxable at only " of per cent.
The banks cannot obtain, except by pur-
chase any bonds as a basis of circulation,
because when deposited for circulation
they cannot be released until the clrcu-
lation is retired, and it might take a year
before the circulation can be retired;
and the price of bonds is so high that
bank circulation is maintained at con-
siderable loss to the banks. They must
be encouraged or circulation constantly
contracts. Therefore the department has
decided to release, for such banks as
have deposits and are not maintaining the
limit of circulation. a portion of the bonds
now held by the government, taking in
lieu thereof other satisfactory security,
On condition always that the bonds re-
leased will be used for the immediate
issue Of additional circulation. This pro-
vision does not apply to those banks that
nave already their maximum circulation.
Easther does it apply to banks that do
not have any deposits. The sole purpose
OF the offer is to increase circulation
that is already printed and ready to be
issued and by banks that already have
the bonds on deposit. These deposits be-
ing scattered throughout the entire coun-
try. the relief offered it is believed. will
be national. rather than local. for it APP
plies TO all sections Of the country, and
to every State in the Union
London Interested.
LONDON, September So.-(Special)-
Financial circles here We're puzzled to-