The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-10-30
COMING SEVERE
TEST OF MARKET
Russian Disorders and Municipal
Campaign Makes Wall Street
Traders Wary.
HOW PRICES ARE AFFECTED
Standard Of Commercial Morality
Must Be Raised Before Sc
curitics Advance.
HOW PRICES ARE AFFECTED
fsncc,a, 10 The TImcs.pispatcl,,

q.
NEW YORK, Oct. 29.-There is every
uiativc market Will be put to come &c.
we're tests III the immediate present and
near future. How severc these will be
and how long continued II liz impossible
to say. That depends largely upon the
outcome OF the Russian disorders, whe-
ther they develop into revolution ana
anarchy or pass away ny the uprising
did In January us a disconccrting, though
actually harmless, event. But while the
Russian situation and It's influence on
the worlds money market is the most
important factors with which the I'M
mediate market must deal, 1t is not the
one. Both the local municipal campaigns,
with It's present powerful drift toward
SOCIALISM, ulld the Immediate money mar
ket. arc also calculated TO test the spec
ulatIvc markets strength.
sS Whether the recent casing in money
rates marks a definite tendA.ncy towagH
fc.aXntion at this lime or has been In.
uenced by some special and temporary
causes should In part be determined this
coming week. TO many persons It has
seemed entirely anomalous that money
rates should have relaxed to such Il de.
gree here, In view OF the high money
and discount rates abroad and the very
t,Gagrc cash reserves and tremendous OBJ
!. Legations OF tho local financial condt-
lions. 3:5 Fl
1t is not at all unlikely that there
,ray be some revision OF opinion MS TO
the money market. as Il result OF the
calling and shifting OF loans attendant
upon the NoveIn Der disbursements and
the transaction in the Japanese money.
1t is not TO be inferred that tho latter
sum is to be Immediately shipped out OF
the country. But. whereas now no re-
serves whatsoever are maintained against
1t by the private banking firm which
has .bdep loaning 1t in the street. when
the ans unt Is called and redepost:ed
with thd banks and trust companies OF
The city, there will be the necessity Of
maintaining reserves against such pro-
portion of the money as deposited In the
4 banks.
II is really not very high compliment
that plays to the prevailing banking sys-
tenn OF New York that IN figuring upon
money deposited In Institutions ono has
to diffcrcntiatc In estimating the possible
contraction OF loanablc funds between
institutions that maintain reserves and
other institutions doing an Identical bust.
ness which ma intnln no reserves at ALL
or practically none.
It's to be hoped that the modern theory
Of banking. which dlspcnscs with cash
reserves and substitutes call loans, rs n
basis of protection against any unusual
demand. may not be seriously tested at
this time. The market and the banking
position does not seem to be any too
strong to enable The community, to stand
calmly by II an experiment of tn. work
InEs OF this theory should become ncces-
Sar<.- n l5svje1r- NJ tho H,pck'S 6cyelou-
mcnts It Is difficult 10 conceive of n more
foolish or ill-timed speculative move
ment than hat inauglirated. bout ten
days ago IN tho .'Speciaties' OF tile In
dustrial list and stimulated by all manner
OF innnipulntivc tricks and devices. the
marking UP OF high grade issues to rcck-
less figures. the .churning" and wash
ing Of pool and clique securities already
raised TO d figure that had placed them
beyond the reach OF the prudence.
II tho red flag OF socialism is dis
played. 1T is primary, because the black
flag or bribery, corruption and graft
a comparatively new name, this. for
stcaling--has been displayed at tho mast
head. We may talk as We will about
our great prosperity and our destiny as
"a nation, but the country has got to
raise Its standard OF political morality
and commercial morality and individual
morality and unite in concentrated effort
rcnp tho benefits of It's wonderful nat
ural resources.
Men case-hurdencd to the prevailing
corruption in political and corporate aft
fairs may accept the low standards of
morality nd unto In concentrated effort
TO raise security prices or further other
Enterprises, but those standards will as
surcdly not be adopted by tho masses OF
tho community. If one thing Is clearer
than another concerning Wall Street, 1T
assuredly is that tho public has played
practically no part in the advancing Sc
curlty market, which dates approximate
lyfrom tho day that the Equitable Liz
Assurance Society passed from the con-
troll of one Individual by purchase 40
another.