The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-12-10
SPECTATORS ARE
NOT AGGRESSIVE
With Such a Poor Bank State
ment Buyers Were In
different.
STIFF RATE FOR LOANS
Every Reason for Belief That
Money VIII Be High for
Many Months.

NEW YORK. December 9-Wall street
expected q poor bank statement. and as
a consequence there was no desire on
the part Of traders in the early dealings
TO engage actively in speculative opera
lions on the Ions side OF the market. but
on the other hand there was no disposi-
ton to sell short to any importan. ex-
tent nor was there any sign OF liquidation
from substantial sources. Prices moved
within fractional variations, and a. the
close Of the two hours Of business showed
small net losses in the majority OF issues.
the only fair-sized declines being reported
IN Great Northern, Northern Pacific and
American uga Refining. American
Car and Foundry. Anaconda. Colorado
Fuel. Mexican Central and the iron and
steel shares We're firm features. and the
greater number OF operators appeared TO
be more bulilsh on the last named groun
OF securities for future profits on the
long side than on stocks IN any other part
Of the fist Bank statement figures were
probably more unfavorable than generally
expected As predicted. the reserve above
legal requirements was wiped out. and
IN its place there was a deficit Of SC. .175.
the actual decline in the reserve item IN
the week amounting 20 G,L1,so0.
The banks were able 20 reduc loans 70
the extent OF only S3.SS3,5e0. while they
lost in cash holdings SE.l5l.8u0. a sum
considerably larger than Fridays esti-
mated movement OF currency indicated.
At this time a year ago there was "A
deficit Of N.246.3 90. and in the corrcsnon5-
ing period in 800 a surplus OF 1880
above the legal reserve point.
Outlook Not So Bad.
While the cash holdings at the assoc
ciated banks are unusually low for this
period Of the year, and while there Is
every reason for the belief that rates for
loans viii rule at q stih level throughout
the balance OF 1913 and well into the new
year. there is no cause for apprehension
over the outlook. and no excuse for the
ideas that tho monetary situation has
reached a point that will act adversely
upon the industrial activities % the coun-
try. There IS more money I'm the United
States to-day than ever before in it,
history. II IS not being boarded. how
ever. II is not lying idle IN bank vaults.
though the Treasury holds a large amount
OF funds that ought 20 be placed IN the
channels OF trade, and the apparent
scarcity OF available money for Wall
Street and for general business purposes
IS not a reflection OF unfavorablc features
ia the general situation. There j. plenty
Of money to be had II borrowers are will
Ing 20 pay high rates.
High rates for time communications are
the result OF the activity Of funds in
trade. and not due 20 Wall street specu-
lauon. as some people ienOrantly imagine.
The manipulation of the call rate for
money Is not affecting any one outside
OF Wall Street. and the very fact that
abnormal quotations are prevailing Ought
in Itself 20 correct the evil by reducing
speculation in securities 10 a point that
would practically make call funds a drug
on the market. No one wants call funds
outside Of Wall Street. and just as long
as the demand for speculative
dalton continues under present money
market conditions many Of the banks and
trust companies doubtless will take adj
vantage Of the situation 10 exact more
than q pound Of flesh from speculative
borrowers.