The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-09-25

CHANGE in BANKING SYSTEM
to Tho Times. Dlspat chs

All authorities agree upon the undorly-
Ing strength nnd tho high and promls-S
Ing outlook DC the agricultural. industrial
and commercial situation. livery dord-E
nary Indication or trade and commerce
is promising 1t ssonly In relation to
the money market that doubt and t.-
certainty anywhere prevails. 1t may DO
truthfully said that despite some de-
vclopments, then, Of d favorable chtrnc.S
ter such as are embodied in additional
gold Imports, that the actual monetary
situation Is still perplcxed. It WAS not
substantially modified by tho weeks hap
Epenings.
Higher Rate Likely.
u There seems every likelihood that for
some time longer uncertainty Will pre-
vail IS In tho money market With tho
chances fuvorlng higher rates the world
over. AS ITO the local market, tho pres
#cnt week bids fnlrgto apply. the usual
test, which always comes when, with
largely expanded liabilities and slender
Z reserves, the end Of a month with heavy
dpy:dcnds land INTEREST disbursements
to make, fall due.
But, In addition to these regular dis
$trlbutions, calling for shifting Of ac-
counts during the week, falls also some
special operations. Thus a. 80 per cent.
instalment on subscriptions to the $780,
coo, 900 Pennsylvania convertible bonds be-
comes payable, entnillng a payment OF
about $50, 900, co., and with this comes, on
the last day Of tho month, September
3oth, u payment OF 81 1-2 per cont. on the
\ SEQ, 00O, 900 Of Atchison convertible bonds,
which, unless some considerable sum has
: been anticipated, calls for the transfer OF
3 $40, o0O, 900. No doubt the payment of 500
Z 600, 900 or s7o.oo0,Oo OF money arranged
for rs special operations alone during
the present week WILDE conducted In n
,nanner&to create least possible disturb
ances to the money market
Very Heavy Shift.
still the shift Is a very heavy one and
sight must not DO lost Of the fact that
other heavy syndicate operations arc at
hand. Thus on October 10th falls the
final, and by far the heaviest, payment
on account of tho subscriptions TO the
last Issue of Japanese 41-2 per %5 cent
bonds, Of which $50 100000 were placed in
this country. This latter transaction en-
tails payment Q { about 500 OO0, 900. a @
Fcording to. the agrecment made when the
flast Japhn resuos loa Il wds issued, tho money
will remain here until some time In No
4vember 5ts
Tho Japanese operation Is important to
bean in mind as the remittance OF the,
funds to Europe thereafter, should ia
ban so decide to do. will Offset n consid-
#erable proportion of our credits abroad,
servo ia curtail gold Imports and might
possibly influence IN export Of gold. when
the financial district least expected It.
Possibly, however now that peace IS MI
actually, Japan may leave its money
here, in order to assist the readJns fnen.s
of It's finances, which, It is UNDERSTOOD
abroad, Is alrendy- under Consideration. 4
The Japanese long ago stated that htHlne
end Of war 1t planned to restore to tho
country the large sums raised by ter
nal loans and excheQuer bills. SO, by
leaving tho funds ofits last loan, or thclr4
unexpended balances. In London Berlln
and New York, and Tesortlns to some re- e.,
funding operation. involving, among 9th
crs. some internal loans, they m ght
make one hand In part wash the other.ili
the way Of exterior debt. However. this
is a mere matter of conjecture, and im-&
porta ant chiefly as 1t enters Into calcu-
iatlons as to the future money markets
Of the world.
Can Get Gold.
or course this country, with Its abound-
ing prosperity and It's ability to borrow
from abroad can get gold In abundance.
THAT Is not the whole Of the prob en-.
however, 50 far as speculative Wall
street Is concerned. 1t rather depends
IN tho price we shall have to pay for q
smfIlcient amount OF gold to bolster up
our reserves and permit tho further ex-
mansion OF liabilities Il wo can com
mand the gold mt a cheap price, even
though wo borrow from tho future ana
nile up n debt abroad 70 no l!9uidhtot
inter on. the money rates may DO Kept
within moderate Limitations and sustain
for n while longer the high level OF
speculative security prices.
'S There might BIO different story. how
ever, when wo sought to strike the nal-
ance later on, Instead OF the return
flow Of currency bringing ease u would
DO going to Europe TO meet 1ndont
Instend OF great staple and merchandise
cxports commanding gold, their purpose
would DO that largely OF offsottlng ored-
its granted by Europe
Need Different System.
Had we a different or uniform banking
ayst EN- we might get along with smaller
reserves than rs per cont, OF deposit la.
hnlties, now imposed by tho national
bunking act on the banks with Feaeral
charters In this city. But we have not
| rot rs per cont. OF cash against the sum
| total OF deposits of all institutions, nor
tho half OF 1t, at tho present time,
| obviously, mo one Erett+ puHhtns TO-
form necessary Is % compel trust CONS
pa,,ies OF that character ms do q general
banking business, to maintain adequate
reseryes AS 1t is now, there Is probably
not above ton or twelve per cent, OF re-
serve In tho local banks, against the
sum total of obligations they support.
This is certainly not encouraging for an
active speculative movement for further
advances, despite prosperity and some
gold Imports The latter arc needed to
sustain commercial credits,
Personals and Briefs,