The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-12-30
Downward Drift of Prices Ac-
counted for by Scarcity Of
Currency.
READY FOR INTER il. PAYMENT
Interior Banks Willing to Take
Good Mercantile Paper.
Distrust Is Over.

NEW YORK. December, 2s.-The
downward drift Of prices of stocks last
week, N a market that was almost idle
at times. reflected the restraining in.
1iHence OF the scantiness of the money
supply and tile purpose to await de.
,v.elopments, In the commercial posi.
t .'on over the end Of the year. Tho
source OF anxiety was clearly Indi.
ea'.a ny the brisk rebound In stocks
at the end of the week. induced i,v ti,s
decisive decline in the premium nm
eurrency; the cancellation Of n gold
engagement In London, ana the in
lcrehccs drawn from these Incidents
OF clearing of the money situation.
separations for the yearly settlements
made requirements which would give
care Tor their provision in normal
money conditions. Besides dividend
anu interest payments for January.
estimated at a round $1s5,0OO. 900 fail
due. on January LIST, and subscription
obligations for new Northern Pacific
ana New York. New Haven and Hart
l"rd STOCK. end the American Tele-
phone and Telegraph convertible bonds.
70 the amount of nearly J3O.OOo,ooo.
IOnns Called.
There was q good deal of calling ~
loahs by the banks in preparing for
ltls financing. which exercised an ac-
tiNe reprcssirc Influence on operations
IN stocks. There was. besides. the
apprehension that the money sit,,ntion
would react unfaTorabiy on con,mercial
nfiairs after the first Of the year. Large
tnluritics fall due at Ina, time OF
mercantile paper, based on extensive
p,"'.ous purchases of merchandise of
al varieties for which the market.
mas been notoriomsiy unfavorable IN tho
depression which cnsuch upon tho
bankinS crisis. The market for mer.
camille paper in New York since that
time has been scarcely moro than nomi !
nal, and the prospect of the continu-
ance of that condition causes anxiety.
over adequate means to provide for
needed extensions of some of these
obligations. Ono of the
week developments which attracted
most attention was the revival Of a
demand on the part OF the interior
banks. small in itself. but regarded ne
important, as possible symptom OF
petter things, for mercantile paper of
inc best grades. Besides this immc.
u:ate need OF mercantile borrowers. a
feature OF the money market for the
coming year will be the large volume
Of temporary note Issues of the great
railroad and industrial corporations
which were put out last year for emer-
sency expenditures, after the market
tor ordinary bond issues became
Siutted. and which fall due at various
periods throughout the coming wear.
III total estimated at $4,000, OOC.
Banking Position.
The banking position upon these
conditions had light thrown upon il
''st week from several sources. There
was published the digest of condition
o. all the national banks. as shown IN
the reports to the Controller of the
Currency, as of December Sd. and also
reports to the New York state Bank.
ING Department of condition of State
banks and trust companies as of De.
cenlber 10th. The reports of the ma
tlonal banks of the country completely
confirmed thu inference of the whole-
sale withdrawal from reserve and cen.
tfal reserve cities of deposits of banks
which had the proportion Of their re-
serves permitted by the national bank
INF law tntrusted to these deposttaries. !
The controllers digest shows, beyond
this, that the smaller banks heavily
curtalled loans, as we'll as called home
their deposited reserve, while the |
central reserve banks infringed upon
their legal reserve limits and issued
house certificates to. provide
resources to meet the strain which
thus threatened n breakdown.
No More Distruxt.
In the case of the savings banks.
evidence has been afford ed
OF the entira subsistence Of distrust
among depostors. Last week saw the
expiration of the sixty-day limit i'm
posed on the withdrawal of deposits
by most OF the savings banks. Some
was made for possible ex-
tr;' demands. and these preparations
had some influence in tightening the
weeks money market, The event
proved that an insignificant proportion
of those who had given notice of In
tended withdrawal were acting on the
privilege. The trade advices and re-
ports of railroad earnings are care
fully scanned for indications of the
course of the country's Industries, and
discussion of dividend prospects is
brought prominently forward as cor
oliary.