The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-02-22
.NOTH|NG DOING
ATR|CHM|0|ND'E end.
.A----------------------. eHi
Dizziness Oh Stock Market Re
Elected inOfficcs in This
City.
DISCUSSION Of WABASH
New York Financial Journal All
swcrs Question Often
Asked Here. 95
DISCUSSION Of WABAsI

swcrs Question Often (
Asked Here.
The stock market was generally dull |
yesterday. Rlchnonders WHO are In
the habit OF watching the ticker and
tho chalk marks that go on tho black
board following tho lntonntlons Of the
instrument Displayed only a
lunguid interest In what was doing
The very first bulletin that came
that to-day. being tho ami
versary Of tho birth OF tho Father of
his Country, would be observed us q
holiday, and, coming this year
so close upon the end Of tho week,
would DO made a double holiday IN
Exchange would be closed from last
evening until Monday morning. This
naturally created quiet
which, for that matter, wos "a have
been otherwise brought about, ror there
was nothing In the quotations to create
interest or enthusiasm. All tho stocks
were dull. and tho changes were on
the fractional order. allowing little or
no margin for speculation.
There was continued discussion in
Richmond OF tho sharp break In Wabash
preferred, which took place without any
pcrceptible cause on "Wednesday. It is
pretty generally understood that TINS
break was due to a hitch in the supposed
wcll-arranged financial plan of the man
agement, and as this hitch can be easily
overcome, and perhaps has already been
adjusted, the sharp decline IN the nature
of tho case is only temporary. This view
is backed up by tho fact that the re-
ports OF Wnbash's actual traffic are verv
encouraging. However. Wabash prefer
red was weaker yesterday than on the
day before. and this in spite Of the
fact that tho outlook for earnings on the
limo is as bright as 1t has been for
many months past-even brighter than
for the past three months.
The New York Stock Exchange closed
yesterday afternoon to remain closed
until Monday morning. To-day is the
anniversary Of the birth OF Geors.,
Washington. and as such Is holiday.
Tomorrow is a half-hollday anyhow.
and SO taking the situation by and large.
and considering the general dullness or
things, 1t was deemed best to close UP
until Monday a two days rcst-three
days. including Sunday--wfn bring the
dealers on the market Monday in better
trim for trading, and the indications are
that the market will open stronger Mon
day morning. but that is problemntlcal.
A question that Is often asked Rich
mond bankers has been submitted In
writing to a New York financial Journal
which is regarded as authority on such
subjects. Following may be seen the
question and the correct answer:
% Please explain finance bills. Does
2 New York banking house. for Instance.
issue them. and are they bought In Lon :
don IN. the open market. or does the New
york firm draw only on Its CORES pondent
ahroad? 90 Does n finance bill merely
or is any security ' back Of e9e t ;sss9iak ''l NJ
Answer-d) New York banking houses
1nmn hfi,s to increase their loans. draw
amounts of pounds. francs or marks.
These bills arc sold in the foreign ex-
change market In New York to bankers
desiring .r1! IN IT, to make remittance to Europe.
these bills are drawn receives q COM
mission for accepting them, which makes
them double;name paper, Tho banking
b bousS bv hhro Eov t9 hqm the bills
have been remitted, after the bills have
boon accepted. has them discounted in
London or elsewhere by b!lI brokers.
S e Wien fpeG bs 81 and the bopsa
which issued them RENTS either by de-
nland bills or by cable transfers q suffi-
cient amount to pay them. In order to
meet these payments the loan which the
New York banking house has made
from the proceeds Of the bills that were
sold arc dated to mature so that they
Will be paid a little before the time for
remittance to Europe. Finance bills are
after sight so that the time for ma
tlrity begins to run as soon as the bills
have been an ACCEPTED ';s !,
Dy 4 he drawer represents tho credit OF
the issuing firm. and also the credit Of
the firm in Europe upon which tho bills
are drawn. because It is taken 70.
draw the bills without authority.
received from, the salo Of finance bills
stock IS aneep fnd te
d Sa ted sterling loans. In MAKING
such loans the drawers Of the bills Dc
stock exchange collateral, and insteae
Of giving the borrower q check upon
New York bank for the account q ii.
the amount of pounds. francs or marks
change in the market, When his loal
ever to aa tho eeaer sgSt eschase us
cable transfers for the amount OF pounds
francs or marks sufficient to llquldat'
| his Indebtedness. The difference between
| these two classes of finance bills Is tina
| liz tho first the drawer takes the risl
OF fluctuation in foreign exchange; AM
in the second class. the borrower take
this risk. IN botl eases h nov Ei,, II J.
drawn to contract for the delivery o
sight bills at liked rate at tho tim
| when the finance bills mature.
MI Co. Qaaa.@l