The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-05-21
MARKET AWAITS
!. DEVELOPMENTS
Looking for Something to Arise
Which May Influence FL
..5 t1ancial Sentiment.
TEST Of FRISCO SITUATION
Effect 81 Pennsylvania Notes on
the Money Market-Bank
Statement.
,sneclnl q The Times. Dispatch)

Especial to The Times-Dispatch)
NEW YORK, May 20.-Tfe various fac
tors going to make up a bank return
hive been so confused and bewildering
TINT no one expressed any positive he
lief as 10 what the statement would show.
1t was known that, during the week, slO,-
COO 600 cash had been lost 10 Interior ana
Treasury while $15,0000 to sl6'ooooyo
gold had arrived from London; but the
whole calculation is SO far complicated ny
the question OF repayment ny banks TO
Treasury, when the Facilitated gold ar
ryes. that no confidence could be felt IN
tho results. ,rhe bark statement shows
no change OF any consequence III cash re-
serves. and H. is hard to say whether, ~
Wall streets language 1t is made upon
rising orlfalling averages. The more I'M
portant fact disclosed by the statement
was a Sis, 100000 increase In the loans
for when there are several possible OK
aplanations. i.
the weeks returning ease ~
money at New York, loans mace he,
Nv interior and foreign banks have been
to some extent paid of. The subscription
70 the Pennsylvania S s5O,0OO,0o0 notes has
played some part and It may be supposed
that the professional spectators, VINO
hnve been doing their best to revive the
game in Wall Street, have been knock
Ing again at the doors of banks s
Decrease in Surplus.
The upshot OF the movement Of l.ans
iand of cash Is a y decrease Of $780, 900
IN surplus reserves; which, however,
leaves that surplne we'll abovn the total
reported at this .dateain 1905, 1903 or l9ts.
One question Of the Immediate future IS
to what extent this tendency to loan
expansion will continue. The situation
In that regard Is curious. Foreign loans
are maturing in large quantity just now;
they may be paid4or and replaced by
loans IN the New York market Yet the
assumption all along, has been. that do
nestle capital was not In large enough
supply to take care q these Wall Street
loans.
The last days stock market requires
no comment; It was purely nominal, and
closed with trif1inR changes. The course
of the market during the whole Of the
week was, IN fact exactly what is ex-.
pected after violent reimbursement Of
values The extreme collapse Il; the ex-
cited recovery, whenaWall Street declares
that the Boom is'srT"on'e again; the
smaller decline and the smaller recov-
cry, and finally the drifting of the
$rasSket into complete inertla-nll these
successive phenomena are perfectly Ia
miiar after such movement Of prices
as that of month ago. Their, familiar
arity however, never makes Wall Street
any more willing to believe. under similar
circumstances. that results will be the
same The market Is now simply wait
Ing for something to arise in the sit
nation, which may legtimately influence
financial sentiment.
Interesting Event.
The reopentng OF tho San Francisco
banks, which now appears to be sched-
uled for next Wednesday, will be an In
terestlng occasion IN more ways than
one In anticipation OF that event, and
of the possible sudden''rush for currency
by depositors In the city's banking in
situations, something like s4o,0o00O0 cash
has been added to San Franclsco's avail
preparation against possibilities which
cannot be measured by experience. VIII
the people rush into the banks to with
draw their money? How much will they
withdraw, and what will become OF the
money withdrawn? 38
1t Is reasonable to expect that with
clrnwals Will be large. With their usual
sickieness, our newspaper-reading COM
munty, having been surfeited with mar
ratlyes o.. the victims of the earthquake
and fire. their mode Of life. and the pro-
Visions of tho public authorities for them,
have abandoned the subject, and for a
fortnight or more little has been said as
to how the houseless Inhabitants nre
farlnE,
But bank deposltors wlthSa moderate
credit balance, who have been living for
a month on loans or charity, are likely
to take out q good instalment OF their
moray when the emergency bank-holl-
days are ended. Many Will have loans to
repay, all will have purchases to make,
and some at least will take out their
money in the vague idea that, unless
they do, there may be none left for them
All this will cause heavy drain on the
$40, 0oo.o 900 national hank deposits and the
sl6O,0o0,00o savings balance of San Fran
cisco. But when tho money has been
withdrawn, when loans have been paid off
and purchases made, tho bulk OF the mo-
ney must In the nature OF things so back
into bank deposits. It may not 80 back to
the banks of San Francisco; but IL 1t Is
Oakland Or Los Angeles, the ultimate ef-
| feet will lie the same Once re-deposited,
and the position at San Francisco guaran-
teed, where will these new reserves go
next?
After the Chicago fire. they came back
to New York, aud the depleted bank re-
serves OF this city We're restored, Whether
the same thing will occur again this year.
on the larger scale that has characterized
the financing OF the relief of San Fran
cisco, is most interesting question In
finance, ,sF
One fact which complexities prediction Is
the absence OF any bid for return OF this
currency, In the present state of the New
York money market.
Pennsylvania Loan,
That stock market should express
qualification ut the snccess Of a great
railway in borrowing heavily on Its notes
at 5Is per cent. and that the news of the
same co,npany's efforts to borrow moro
on similar terms In Paris should have
been cited as another encouraging fact.
are incidents which suggest something
like mental confusion That the Penn
sylyania should be borrowing at all on