The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-04-08
Market oil Safe Basis, and Sc
curities Are i'll Strong
Hands.
Especial 10 rhe rimes-pl.pateh.l

NEW YORK. April 7.--Thc stock
market appears to have partially re-
covered from the drastic blow or the
March panic, and now shows n distinct
~ better tendency. After such thor
ough lluuidation. many OF the weak
spots were eliminated, and the test
thus Imposed developed u much
stronger foundation to tho market
than was generally supposed. The
shrinkagc In values amounted to some
where uhout s2.o0O,oO0,O00. Prices have
consequently been brought down to
lower and much safer level, and with
out serious disaster. This OF itself Is
marvellous fact. AS repeatedly stated
In these adviccs for the last six months,
liquidation was the only cure for the
abnormal conditions OF the stock
market reached in 1906. We have now
bad that liquidation. and. unfortunate
as 1t has been to many, the results to
the market as whole are decidedly
beneficial A good many large and
top-heavy speculative accounts have
been closcd out, and funds thus re-
leased are finding their way back to
legitimate channels.
Monetary conditions have been much
Improved by this liquidation. Bark
averages from now on should show a
rising tendency, and very soon the
large sums temporarily Withdrawn for
April settlements Will become available
In tic money market Already VIC have
had very pronounced drop in call
loans This may have been partly art-
fetal; but in the main 1t was natural
and in anticipation Of easier time rates
which should follow later on. Some
gold has been imported recently, but
the necessity for drawing upon Europe
for gold has almost passed; and the
fact that New York need not trench
upon the supplies in London, Paris or
Berlin will have good
effect upon the foreign markets. where
monetary conditions have not been
very satisfactory.
for speculative financing, have been
for some months past potent cause
for apprehension in the European
money markets. With this fear re-
moved the extreme tension which
has been observed In tho worlds
money markets for fully year should
be somewhat moderated. There is now
no lack OF money in this country. In
fact. we are more likely to be
threatened with redundancy than
with shortage. especially II spccu-s
lntion and business become less ac-
tive and on a lower plane OF values.
The circulation In the United States
now amounts to +2,906ooo,0 900. whichs
Is 32a0,O0o,0o0 In excess Of d year
ngo. More than one-half OF the In
crcase--or S12o. 0.O00--was In gold
certificates: about S50.o00.0o0 in gold
coin, and sf5.00O,10o in national bank
notes. Our circulation now amounts
10 about ssi per capita. the largest
amount on record Another element.
which has materially contributed to-
wards easier conditions In the money
market is Secretary Cortelyou's policy
or countcracting, as far as within
mis- power the Injurious e nect OF
Treasury operations. This has been
accomplished by the increase OF gov
ernment deposits in the banks: while
5 the Secretary's plan to convert S50,000,-.
4 coo United States As which shortly ma
ture into 9 Per cents will also be
beneficial, preventing tho contraction
of bank note circulation dependent
upon s27,000,000 Of these bonds held
for that purpose The conversion OF
these bonds from a to&a per cent.
basis Is. Of course, a fattering OK
hbitlon of credit. Owing to the
high rates for money and prevalent
economic conditions, all government.
S State and municipal issues have been
selling exceedingly low. British con-
soils. which pay 2 12 per cent. and
are usually considered Nhe highest
form OF national credit, have been
Muttering around IS. New York City
was enabled to market It's 4 per
cents at par. OF course, the ability
of the United States to put out bonds
ut 2 per cent. is largely due to the
privilege Of using them as a basis
OF circulation.
This materially enhances their value
and explains in part tho difference
between American and foreign bond
issues. Nevertheless. tho contrast Is a
pleasing ono; inasmuch as without this
privilege our bonds show n very high
standard of national credit.
The reaction in Wall Street has in.
duced somewhat moro cautious feet.
Ing In business circles. This was desir-
able. since buyers in many cases were
losing their heads Mt a time when cal.
culatlons entering into tho future IN
volvcd' more than usual risk The
chief complaint continues to be tina
high cost OF doing business. which Of.
ten makes our prosperity more nppar-
hnt than real. TOO often business Is
measured by values rather than by
quantities. When tho latter nre taken
Into consideration tbs found that our
growth has not been so abnormal as
when judged by values The latter
have been highly inflated, and conse-
uucntly exaggerated our prosperity. A
moderate recessionain commodity val
tlcs would be WELCOMED IN many quar-
ters, inusmuch as 1t would place tho.
future upon a safer and more certain
basis. Fronts have been seriously cur
tailed in many instances by tho nd
Vanccs in materials and labor. and
this Is q tendency which, needless to
say, cannot go on indefinitely. This,
however, is n problem which must
work itself out slowly, and docs not
seem to have any Immediate cf-~-ct upon
the stock market, which by It's recent
, Bhrinkage has fully discounted many OF
the NEUTRALITY-SUSPICIOUS. or ut present