The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-04
on the Stock Exchange
Remains Very Light and
Inactive.
THE BANK RESERVE is DOWN
Situation Regarding Trade Out
look Has Been Overlooked
During Financial Storm.

NEW YORK, October 3.-The bank
statement, which was not published un-
til after the close of business yester-
day, was rather remarkable. Increase
OF $60,741,000 in loans was the meas
ure. presumably. of the clearing house
certificates tssucd since last Saturday.
Cash holdings decreased $3O,100,O00, so
that the surplus.reserve decreased $37,-
100000. The deficit thereby created
Will presumably be relieved exactly as
that one was-by the arrival of gold
from Europe. Ut reflects a peculiarly
abnormal situation, and is happily not
likely to be repeated. The very elf-
ments of seeming weakness In the
showing. 1t must be remembered. are
due to the promptaess with which we
ordered gold from Europe: for n first
step in such negotiations is the raising
of heavy loans In. New York City. When
the gold arrives. the real offset to
the operation comes in evidence. Need
less to say. II was better to rave in
CURED that part OF the situation at
once, so that the relief to bank re-
serves might be had at the earliest
moment.
Yesterdays stock market was to all
purposes at a standstill: 1t might al
NOSE be said that trading was aban-
doned. Prices opened irregular. then
fell off f~ractionally. on a limited vol
ume of transactions. for an hour. then
recovered a good part OF the loss. Moth
ing In the days movement was in any
respect significant. except as to the
whole communities disposition to await
developments with calmness.
Relief Mt Hand.
It Is already obvious that some re-
course is being had to bids Of a pre-
MUM. in certified checks. for gold. and
the expedient may help to relieve the
in gold, now on the ocean bound for
New York, arrives. The recourse ought
however, to be employed with caution
and discretion, first, because this ahun-
dant relief is so near at hand. tsec-
ond, because it is far from our interest
to disturb the European situation.
Thanks to the wise and broad-minded
policy pursued by the Bank of Eng
land since the middle of August. that
institution occupies an unusually strong
position: it's actual stock of gold }nst
Thursday, even after the very heavy
withdrawals for New York. Standing
SIG. 10000 above this date in 1906,
and 81. 900, 900 above even the closing
week Of October. 1905. when a 4 per
cent. bank rate was deemed high
enough.
But this does not mean thai with
drawals of gold from the banks reserve
on last weeks scale could be resumed
and continued without deranging Lon
don's own position, n since financial
London is q main reliance for our
market now. such a result would de-
feat the very purposes with which we
are seeking gold.
In 1893 tho bid for reserve money
was employed in a different way, be-
ing so made as to draw from its hid
ing-places the currency boarded in
New York, and relief from that source,
during the interval before Europe's
gold arrived. was Immediate and effec-
tive. The point of paramount i'm
portance is, that only a few days now
remain for the waiting markets, be-
fore the real and substantial relief.
from the gold already ordered, will be
felt.
Trade Reaction.
hi situation OF the moment, in re-
gard to the bank n credit situation,
Is SO peculiar and abnormal that It is
quite premature to say exactly what
will follow it. There are certain So
quels which, unfortunately. experience
leaves us no right to dismiss from en-
pectation, and among these is a gem
eral and rather serious trade reaction.
Sentiment has been so far reversed
by the simple shock of the past ten
days events by the imminent peril
with which all sorts Of business I'M
~dertakings have been for a time con-
fronted by the blockade OF credit, and
by the suddenness with which people
living up to or beyond their means
have been reminded OF the realities,
when their banks turned away from
them, that it is wholly impossible for
. ~ rr ~ - A-r LII ..
large, to hold at its recent magni-
tude,