The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-09-02
STOCKS, BONDS AND MARKET NEWS
IN MARKET
ARE GREATLY IMPROVED
Money Is Easier and Greater
Confidence Pre-
walls.
GOVERNMENT DEPOSITS DO 1T
Americans Owe Very Little
Money Abroad-Ncw York
Bonds Break Deadlock.

money HDIOdd-NcW fOrk
Bonds Break Deadlock.
NEW YORK. September 1.-The feel
Ing of anxiety apd apprehension, which
has been prevalent in financial circles
quietcr last week. and this was re-
nccted In some Improvement in prices
of securities. Tho result was accom-
pllshcd without any very substantial
revival of demand for stocks. tho buy
ing coming clearly in most part from
the covering of short contracts left
open as consequence OF bear opera
tons during the prolonged decline In
prices. On the selling side. however,
there was a marked subsistence OF the
kind of pressure which has kept the
market in disorder during the previous
period. The change In sentiment was
easily disccrnible in the disregard OF
the many rumors of an alarming char
actcr which were circulated in the
early part OF the week. alleging en-
barrassments by stock and bond houses.
and even By influential mercantile
houses.
The bears soon perceived that these
devices were Intellectual in inducing
further large offerings of holdings, and
they were led perforcc to buy In stocks
on rising scale to cover their short
contracts.
Weekly Deposits.
Quite the most influential factor in
bringing about the betterment was the
announcement Of the Secretary OF the
Treasury OF his intention to make
large weekly deposits OF government
funds with the national banks dur
Ing the period of the crop-moving de-
mand. The response was prompt, not
only in the American money market,
but in the great foreign money CEN
tres as we'll. In London especially the
discount rate declined and 1t became
quickly manifest that defensive meas
|ures in that market against New
York's supposed intentions to draw on
foreign money resources were being
abandoned. AS matter of fact. the
earnest purpose of present recupera-
ton amongst the great foreign banks
was based largely on their solicitude
over the prospective requirements of
the short supplies of foodstuffs abroad
and the necessity they would be under
LOT making large remittances to this
country to supply their needs when the
outward movement of our crops sets
1t. The Treasury measure for supply
ing our currency needs gives promise
of relaxation OF the demand on for
|eign money resources for this pur-
pose.
There is general agreement. however,
that this conntry's position in the In
lternational exchange is stronger than
the year.
Debts Small Abroad.
For ono thing. foreign lenders OF
money have exercised sharp discrimi-
nation against would-be American bor-
rowers, SO that 1t is believed outstand-
ing bills In foreign markets running
to maturity are much smaller than Is
usual. the decrease from last year
being estimated at several hundred
million dollars.
Even the usual offerings of CONNER
cial bills OF exchange of future ship
ments OF commodities have been UNI
usually small. owing to the doubt felt
over the outcome of our crops. The
past few months also have seen q very
large return of foreign holdings OF
American securities to the home mar,
ket. This has been material factor
in adding to the burden OF the home
stock market during the period of
stress. but the floating supply of Ameri-
can securities abroad has been corre-
spondingly reduced. and smaller sup
ply left available for sale to influence
the exchanges.
Sale OF New York Bonds.
The reception given to the announce
ment of the intended sale on Septem-
Der 10th of forty millions of New York
City bonds was another influential fac
tor in reviving confidence In the in
vestment situation. Not all of the early
rrmors of tho formation OF bank
ers syndicate to bid for the whole
issue were confirmed hut the opinion
| amongst bankers was that the offer
Ing would prove success and that
a considerable portion of the Issue
would be placed with foreign investors.
The fact that the rate of interest on
the new issues had been raised to 4 10
per cent. compared with the previous
4 per cent. rate left clear inference
OF the high prevailing rate for capital
still existing ana led to some re-
adjustment In prices OF older Issues.
not only of New York CITY, but OF other
high grade investment bonds.
Brcnks Deadlock.
The prospect that the issue would
be placed. however. Indicated progress
In the fixing Of the new standard Of
return on Investment and promise
OF the breaking of the deadlock which
has existed between capital and its
employers,
a forcible reminder. on the other
hand. >of the difficulties which still re-
main in securing adequate capital ia
cilities was offered by the decision Of
the Erie directors to offor scrip instead
of cash in the payment OF dividends to
their preferred stockholders. In spite
OF large surplus earnings over divi-
dend requirements shown BY the years
operations. This determination to con-
serve cash resources for outlay In ro-
CURED bettcrments was regarded as SO
far symptomatic OF conditions as TO
cause some renewed weakness OF stocks
OF companies known to be similarly